Banking the Unbanked: The Journey of Indian Bank

2016 ◽  
pp. 1-30
Author(s):  
Samir K. Barua ◽  
Sobhesh Kumar Agarwalla
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Central Bank ◽  
Financial Literacy ◽  
The State ◽  
Financial Inclusion ◽  
Financial Viability ◽  
Public Enterprises ◽  
Minority Shareholders

The case describes the strategy of a large Indian Public Sector Bank (PSB) to enhance financial inclusion and financial literacy of less privileged people located in poorly accessible parts of India. While pursuing the developmental objective ‘imposed’ by the Central Bank/government, being a listed entity, the PSB had to be mindful of the financial viability of the strategy so as to protect the interest of its minority shareholders. The issues covered are endemic to most developing countries where public enterprises often become instrumentality of the state.

scholarly journals An Empirical Analysis of the Impact of Agency Banking on Financial Inclusion in Benue State, Nigeria: Implications for Economic Activities

2022 ◽  
Vol 14 (2) ◽  
pp. 75
Author(s):  
David Terfa Akighir ◽  
Tyagher Margaret ◽  
Jacob Terungwa Tyagher ◽  
Tordue Emmanuel Kpoghul
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Survey Design ◽  
Secondary Data ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
The Impact

Twelve (12) out of the Twenty-three (23) local government areas (LGAs) in Benue State do not have the presence of banks over a long period of time. This situation has deprived the inhabitants of these LGAs of access to formal financial services until the advent of agency banking. This study therefore, investigates the impact of agency banking on financial inclusion and economic activities in Benue State focusing on the agency banking activities of First Bank Ltd. The study is anchored on the agency theory and it used a survey design. The study has utilized both primary and secondary data that were analyzed using descriptive statistical tools and structural equation models. Findings of the study have revealed that agency banking activities of First Bank Ltd have immensely enhanced financial inclusion and economic activities in Benue State. However, challenges such as shortages of cash, security problems, network failures, and lack of financial literacy are militating against the smooth operations of the agency banking in the State. On the basis of these findings, the study has recommended among others that, other banks operating in the State should be encouraged to venture into agency banking in the state so as to have a wider coverage of agency banking in the State. Also, government should provide security and partner with the private sector to provide national carrier communication network system to overcome the network failure challenge. Finally, banks should intensify efforts to educate the masses about the validity and potency of agency banking.

scholarly journals The mechanism of synergetic interaction of policy instruments of central banks with the governments of their countries as an element of increasing the level of economic development in the face of an epidemic threat

2020 ◽  
Vol 8 (5) ◽  
pp. 13-21
Author(s):  
Leonid Taraniuk ◽  
Oksana Zamora ◽  
Oleksii Demikhov
Keyword(s):  
Developing Countries ◽  
Economic Policy ◽  
Economic Development ◽  
Comparative Analysis ◽  
Central Bank ◽  
Policy Instruments ◽  
The State ◽  
Effective Management ◽  
The World ◽  
Level Of Economic Development

Goal. The purpose of the research is to conduct a comparative study of the work of the Central Bank of the world with their governments in the context of forming a mechanism for synergistic interaction of its economic policy instruments to improve the level of economic development. Topicality. The actualization of this study is the need to establish effective formal and informal links between the central bank as a system-forming financial institution that shapes the monetary policy of the state and the government as a governing body that creates a virgin economic policy. There is a need for a systematic comparative analysis of the experience of developed and developing countries in order to form an effective tool for economic policy of the central bank with its government and make effective management decisions aimed at improving the level of economic development. Results. The system of relations between the central bank of developed and developing countries and their governments is described. Factors of positive and negative influence on the formation of economic policy tools of the central bank of the countries and their governments are revealed. Formal and informal links have been analyzed between the world country’s central bank and its government in the process of implementing the central bank’s economic policy. The mechanism of synergetic interaction of the tools of economic policy of the central bank of the countries with their governments is improved, which contains indicative indicators of the interactions of the central bank, ministries, government of the countries for the purpose of making effective management decisions. The necessity of systematic work of all stakeholders (central bank, government, other stakeholders) in the process of forming economic policy, the implementation of which can affect the level of economic development of the state, is substantiated. Conclusions. The comparative analysis with elements of benchmarking estimation is carried out The mechanism of relations of the central bank of the country with its government is improved. The role of this interaction of the country's central bank with its government and other stakeholders was assessed.

Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1257-1277
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Developing Countries ◽  
Social Network ◽  
Research Design ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Content Type ◽  
The Poor ◽  
The Relationship

PurposeThe main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.Design/methodology/approachThe study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.FindingsThe results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.Research limitations/implicationsThis study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.Practical implicationsThe advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.Originality/valueThis paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.

scholarly journals ASSESSING GOMBE STATE CITIZEN’S ATTITUDE AND PERCEPTION OF THE CASHLESS POLICY

2021 ◽  
Vol 8 (1) ◽  
pp. 148-165
Author(s):  
Yusufu Bachama ◽  
Keyword(s):  
Local Government ◽  
Central Bank ◽  
Financial Literacy ◽  
Internet Banking ◽  
The State ◽  
Automated Teller Machines ◽  
Infrastructural Development

The Central Bank of Nigeria (CBN) introduced the cashless policy in 2011 which eventually took effect in 2012. The aim of the policy amongst others are to reduce the amount of physical cash circulating in the economy and encouraging more electronic-based transactions. The objective of this study is to review the CBN cashless policy in Gombe State and, in particular, assess peoples’ behavior and attitudes towards the policy in the State since its inception. Questionnaires were administered on 300 bank customers across the 11 Local Government Areas (LGAs) of the State. The findings revealed that 65% of respondents actually do not know what the cashless policy is all about, 80% are happy with the introduction of cashlite (Cashless) points such as Automated Teller Machines, Point of Sales, and Internet Banking etc. As an interim verdict, 25%of the respondents believe that the cashless policy is necessary, 24% believe that the CBN approach to its implementation is the best and 43% believe that the policy will succeed. The study recommends that more banks’ branches and cashlite channels need to be established especially in other LGAs; the need to consolidate in infrastructural development; and financial literacy for all.

Reforming the State Bank of Vietnam towards an Independent Central Bank: the Application of New Public Management in Vietnam

2012 ◽  
pp. 99-112
Author(s):  
Duc Dang Ngoc
Keyword(s):  
Developing Countries ◽  
Central Bank ◽  
Public Management ◽  
New Public Management ◽  
Positive Impact ◽  
Developed Countries ◽  
The State ◽  
Central Bank Independence ◽  
New Public ◽  
The Government

In many open-rich financially developed countries, the central bank (CB) plays an important role in the development of a sound and effective financial system in par- ticular, and economic development and stabilization of the economy in general. In these countries, the governance of the CB is based on the three main principles of New Public Management (NPM) known as the three ‘pillars’, which includes: (i) central bank independence; (ii) central bank accountability, and (iii) central bank transparency. Among them, central bank independence is considered the key and pri- mary ‘pillar’. This implies that the reform of the central bank towards an independ- ent entity thereby could be seen as one of the most important elements of a public administration reform program in developing countries (LCDs), and Vietnam should not be an exception. The State Bank of Vietnam (SBV) – as the Vietnam’s Central Bank – has been operating successfully in the last decades and has contributed greatly to Vietnam’s development. However, the dependence of the SBV on the Government has shown a number of weaknesses that should be overcome as soon as possible in the next stage of the development process, especially when Vietnam becomes an official member of the World Trade Organization (WTO) in 2018. In this paper, three issues will be covered, including: (1) The independent central bank and its positive impact on the development and stabilization of the economy as a theoret- ical framework for discussion on the need for and the way of the reform of the cen- tral bank in developing countries; (2) a factual analysis of the SBV’s problems resulting from its high dependence upon the government, as well as opportunities and challenges of reforming the SBV towards an independent central bank; (3) rec- ommendations for solutions to ensure the success of SBV reform in the future.

scholarly journals ROSCAS Remain Strong in India Despite Greater Financial Inclusion

2014 ◽  
Vol 3 (3) ◽  
pp. 176-185
Author(s):  
Alka Bramhandkar ◽  
Mary Ellen Zuckerman
Keyword(s):  
Developing Countries ◽  
Economic Models ◽  
World Market ◽  
The State ◽  
Financial Inclusion ◽  
Economic Power ◽  
Lender Of Last Resort ◽  
Traditional Role ◽  
Cultural Traditions ◽  
The World

We begin this paper by summarizing various studies which used surveys and economic models to describe the characteristics and benefits of the old tradition of ROSCAs which is prevalent in many developing countries around the world. These studies also document the types of draws and the factors that motivate people to participate in a ROSCA. We expand the information on this tradition in a state in India where ROSCA is referred to as bhishi. During the month of January 2013, we interviewed (in-person & over the telephone) several regular participants living in two metro areas in the State of Maharashtra, namely, Mumbai & Pune. Another smaller city of Miraj was also included. The findings from the interviews in India are illustrative of the creative ways people have taken the old, money-based idea of bhishi and interwoven it with the fabric of social and cultural traditions. It is being kept alive to build and strengthen relationships among friends, relatives, and neighbors. Incorporating the fun dimensions ranging from enjoying different cuisine to taking trips into the old tradition seems to maintain its popularity. This behavior is noteworthy especially with India’s recent entry into the world market as an emerging economic power. Although people with lower incomes still value bhishi in its traditional role as a saving vehicle (and occasionally as a lender of last resort), most middle and upper-income earners strongly believe in this modern evolution of an old tradition and are committed to continue it.

Public Sector and Corporate Evolution

1978 ◽  
Vol 3 (1) ◽  
pp. 13-20
Author(s):  
P.L. Tandon
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
The State ◽  
The Public ◽  
The World ◽  
And Control ◽  
The Relationship

Starting with Britain, followed by Japan and Sweden in the last century, and by Russia, Italy, and France in this century, the public sector is now spreading to most countries in the world, with a special appeal to developing countries. Most writings on the public sector have been confined to its growth and problems, its relationship with the state, and the contribution it is expected, but often fails, to make to the economy. This article, however, examines the public sector on other dimensions: 1) its place in the process of corporate evolution; 2) the relationship between capital and control in the public sector; and 3) a comparison with the multinationals.

scholarly journals Potentials for savings in the Slovenian public enterprises and investments in infrastructure?

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Nevenka Hrovatin
Keyword(s):  
Public Sector ◽  
Income Tax ◽  
Private Investment ◽  
The State ◽  
Rate Of Return ◽  
Corporate Income Tax ◽  
Public Enterprises ◽  
Independent System ◽  
Public Companies ◽  
Efficient Management

The author analyses the success rate and efficiency of Slovenian public sector companies in the course of their operations and looks into opportunities for savings and ways of attracting private investment in infrastructure. By reducing expenditures public companies achieve higher profits, from which the state in turn receives firstly, dividends as a form of budgetary revenue; and secondly, increased tax revenues, as public companies are not exempt from paying corporate income tax. By increasing the rate of return in public companies, the state therefore receives a larger slice of the budget pie on account of its two roles – as both owner and administrator, and as fiscal generator and provider. The author concludes that Slovenian companies cannot achieve identified possible savings without the efficient management of public sector companies. To this end at least two reforms should be introduced in Slovenia: firstly, the introduction of a system of contracts between the state and public sector companies on the meeting of specific pre-determined goals; and secondly, the establishment of a politically independent system of recruitment and appointment of managers based on professional references, and a management remuneration system tied to either the operating results achieved by said public companies or on the meeting of certain pre-determined goals set out in contracts between the state and public companies.

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