Despite financial inclusion initiatives of the government through Jan-Dhan Yojana and the RBI, financial penetration is low and disproportionate in India among the poor, women, and the illiterate. This paper analyses the factors that influence formal institutional account-holding and the sources of borrowing in India, using the World Bank financial inclusion survey (Global Findex). The binary logit model of account-holding status and multinomial logit model of the choice of borrowing from formal and informal financial institutions are estimated. The estimated results show that an individual’s savings frequency and wage earnings influence the account-holding status in formal financial institutions. Women have lesser access in owning bank accounts as well as borrowing from formal sources. Less educated people and the poor mostly resort to informal borrowing, as they are not exposed to the financial market, and even if they are exposed, they do not have collateral security for formal institutional credit.