Evaluation of Financial Inclusion Index for accessing Banking Technology through Rural Population from the States of India

2019 ◽  
Vol 118 (8) ◽  
pp. 261-265
Author(s):  
Dr.M. Bhuvana
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Rural Population ◽  
Research Study ◽  
Financial Inclusion ◽  
Insurance Company ◽  
Indian Government ◽  
Financial Products ◽  
Reserve Bank ◽  
Reserve Bank Of India

Reserve bank of India has described the term Financial Inclusion as the sequence of activities that has taken place in proving financial services to the most vulnerable people in country at a very low affordable cost. The financial services like assess to financial products such as small deposits and savings, providing basic credit requirements through formal financial institutions like post offices, banks, microfinance institutions and banks. Rural people faces may issues and challenges in using financial products and services to meet their basic needs. Hence this research study has done an analysis to evaluate index of financial inclusion for various states of India with four different types of dimensions like Penetration of Bank Branches in rural areas, Credit Penetration, Deposit and Penetration of Insurance Companies in the rural regions of all the states of India. Different resources namely the website of Reserve Bank of India, Census 2011 data, articles and journals has been utilized to gather the secondary data for the study. The dimensions such as deposit, credit, insurance company penetration and bank branch penetration in rural areas of different states of India has been measured by accessing multidimensional approach to examine financial inclusion index 2018. From the research study, it is found that the states Puducherry, Daman & Diu, Chandigarh and Goa has Financial Inclusion at below average level (between 35-50) and the remaining states in India has financial inclusion at very low level in rural areas (Below 35).As concerned with rural population many states in India has financial inclusion at below average and lower level. The concern authorities from Indian Government should examine those states that are highly eliminated from accessing banking services to restructure the position of financial inclusion

scholarly journals BANKING SECTOR ORIENTED FINANCIAL INCLUSION IN INDIA: A LONG TERM PERSPECTIVE

2020 ◽  
pp. 42-59
Author(s):  
Sana Pathan ◽  
Archana Fulwari
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Long Run ◽  
Reserve Bank ◽  
The Government ◽  
Improve Access ◽  
Reserve Bank Of India

Financial Inclusion is an emerging concept. The objective of the government behind 100 percent Financial Inclusion is to have inclusive growth in India. Several initiatives have been taken by the Government of India and the Reserve Bank of India to improve access to financial services. To measure the effectiveness of these initiatives there is need to measure the extent of Financial Inclusion. Financial Inclusion can be measured by gauging the progress in access to and usage of a range of products and services of financial institutions over time. The present study sought to propose an index to measure the extent of banking sector oriented Financial Inclusion in India over a period of time rather than a cross-section study which has been the focus of many a studies. The study used more specific indicators of banks-centric financial inclusion dimensions to gauge the long run trend in Financial Inclusion in India. The results indicate that there is much improvement in Financial Inclusion in India since the implementation of financial sector reforms.

scholarly journals Modern aspects of the development of financial inclusion in rural areas of the Russian Federation

2021 ◽  
Vol 285 ◽  
pp. 01013
Author(s):  
Svetlana Podgorskaya
Keyword(s):  
Mobile Communications ◽  
Rural Areas ◽  
Financial Services ◽  
Digital Literacy ◽  
Rural Population ◽  
Information Technologies ◽  
Financial Inclusion ◽  
Digital Inequality ◽  
Low Level ◽  
Special Programs

The article considers financial inclusion as the most important means of achieving sustainable comprehensive economic growth. It is established that in the new model of sustainable development of rural areas, the financial involvement of households and small and medium-sized businesses is of particular importance. However, in Russia, among all segments of the population, the most excluded category from financial and economic interaction is precisely rural residents. The main reasons for this situation are digital inequality in the form of low availability of digital communications (Internet and mobile communications) for the rural population, the low level of digital and financial competencies of the villagers, and the low level of income of rural households. Despite the government’s policy to increase the financial accessibility of banking services and eliminate digital inequality, in regulatory and policy documents, references to rural areas are either indirect or absent. Today, there is a boom in the digitalization of financial services; the level of development of information technologies allows you to create more convenient, efficient and mobile products that do not require visits to bank branches and face-to-face consultations. At the same time, such digitalization can become a threat to the development of financial inclusion in rural areas. In this regard, are needed special programs to improve the financial and digital literacy of the rural population, as well as a system of accessible consulting support on lending issues.

scholarly journals IMPACT OF DEMONETIZATION ON INDIAN ECONOMY - A MICRO LEVEL ANALYSIS

2020 ◽  
pp. 42-44
Author(s):  
Dr.Honnappa.S
Keyword(s):  
Tax Evasion ◽  
Rural Areas ◽  
Urban Areas ◽  
Agricultural Sector ◽  
Digital Economy ◽  
Indian Government ◽  
Reserve Bank ◽  
Micro Level ◽  
Level Analysis ◽  
Reserve Bank Of India

Indian government adopted demonetization on 08 November 2016 to tackle with black money and make India a cashless digital economy. As per the yearly report of Reserve Bank of India of 31 March 2016 that total currency notes in circulation is 16.42 lac crore of old Rs. 500 and Rs.1000 banknotes. As per the report of RBI dated on 14-12-2016, the total amount of old notes of value of Rs. 12.44 lac crore has been deposited by the customers till 10-12-2016. Banks started accepting deposits from 10 November but within a period of 15 days approximately half money has been received by the banks. India is the second most populated country in the world with nearly a fifth of the world's population. Out of the total 121 crore Indians of Indian population, 83.3 crore of population live in rural areas while 37.7 crore stay in urban areas, said the Census of India 2011. As a rural populated country most of the rural population are engaged in agricultural activities as most of the population of rural areas depends on agriculture. Agriculture forms the backbone of the country’s economy. The agricultural sector like forestry, logging and fishing accounted for 17% of the GDP contributes most to the overall economic development of India KEY WORDS: Demonetization, Cashless Transactions, , tax evasion, Cash Crunch, Digital Economy.

Union Bank of India: Initiatives towards IT-enabled Financial Inclusion

2014 ◽  
Vol 3 (2) ◽  
pp. 149-156
Author(s):  
Taruna Gautam ◽  
Kapil Garg
Keyword(s):  
Financial Services ◽  
Operating Cost ◽  
Financial Inclusion ◽  
Mobile Banking ◽  
Economic Activities ◽  
The People ◽  
Reserve Bank ◽  
Financial Depth ◽  
Financial Growth ◽  
Reserve Bank Of India

The economy is on the path of growth trajectory as a result of vibrancy in all-round economic activities. At present, the financial depth in Indian economic scenario is not that encouraging as in other Asian countries, although it has demonstrated gains in momentum. There is a strong interrelationship between economic growth and financial growth through financial inclusion. Financial inclusion involves the concerns related to the operating costs that are inherent in wider expansion. Similarly, the charges levied are an important aspect, along with the inability to reach rural and unbanked areas. Here, information technology (IT) can play an important role not only in reducing the operating cost but also in covering most of the regions which are unbanked. IT provides various solutions for financial services to the people devoid of banking facilities in the form of mobile banking and micro ATM. This case highlights the various IT measures and schemes launched by Union Bank of India towards financial inclusion as per the guidelines of Reserve Bank of India (RBI).

scholarly journals Effectiveness of Financial Inclusion in Economic Growth of India

2021 ◽  
Vol 5 (7) ◽  
pp. 71-75
Author(s):  
Sirangi Chandra Shekhar ◽  
Jothiselvamuthukumar A.
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
Investment Funds ◽  
Financial Exclusion ◽  
Reserve Bank ◽  
Formal Framework ◽  
Credit History ◽  
Comprehensive Development ◽  
Low Pay ◽  
Reserve Bank Of India

Financial Inclusion (FI) is a significant interaction to accomplish the objective of comprehensive development. Appropriately, the Reserve Bank of India (RBI) has put forth, supported attempts to expand the entrance of basic financial services in unbanked zones, while proceeding with its strategy of guaranteeing satisfactory however feasible progression of credit to need areas of the economy. FI is conveyance of banking administrations at a reasonable cost to the immense segments of oppressed and low-pay gatherings. By FI we mean the arrangement of reasonable financial services, to be specific admittance to installments and settlement offices, investment funds, advances, and protection services by the formal framework to the individuals who are generally not offered these kinds of services by any other financial institutions due to their poor credit history. Meaning of FI emerges from the issue of financial exclusion of almost 3billion individuals from the basic financial services across the world, with just 34percent populace occupied with formal banking. India has, 135 million FI families, the second most noteworthy after china. The current paper is a modest endeavor to discover the reasons for financial exclusion in India, examine the degree and extent of FI with regards to India and propose measures to take care of the issue of financial exclusion in India.

scholarly journals Study of Role of Financial Institution in Financial Inclusion

2020 ◽  
Vol 10 (6) ◽  
pp. 35-40
Author(s):  
Ishan Khatri ◽  
Prarthana Fabyani ◽  
Chehak Rajgarhia ◽  
Sejal Murarka
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Vital Role ◽  
Financial Inclusion ◽  
Self Help ◽  
Reserve Bank ◽  
The World ◽  
Self Help Groups ◽  
Reserve Bank Of India

India is one of the largest growing economies in the world. Financial inclusion is providing financial services at an affordable rate to all people. It comes into existence in the year 1950 establishment of Reserve Bank of India. There are various incentives which have been undertaken to increase financial inclusion in India. With the nationalization of commercial banks. And the formation of NABARD Self-help Groups and Kisan credit bank. After 2000, the schemes like Swavalamban swabhiman have been launched to increase its role. The schemes by government of India like PMJDY and Startup India schemes. Financial inclusion helps in forming cashless economy and increase capital formation and increase economic growth of the country. It provides business and growth opportunities to the Intermediaries. This system also provides affordable services to the poor and played a vital role in improving country financial services.

scholarly journals How does financial literacy impact on inclusive finance?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Morshadul Hasan ◽  
Thi Le ◽  
Ariful Hoque
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Rural Population ◽  
Poverty Reduction ◽  
Population Data ◽  
Financial Inclusion ◽  
Probit Regression ◽  
Financial Access

AbstractInclusive finance is a core concept of finance that makes various financial products and services accessible and affordable to all individuals and businesses, especially those excluded from the formal financial system. One of the leading forces affecting people's ability to access financial services in rural areas is financial literacy. This study investigated the impacts of financial knowledge on financial access through banking, microfinance, and fintech access using the Bangladesh rural population data. We employed three econometrics models: logistic regression, probit regression, and complementary log–log regression to examine whether financial literacy significantly affects removing the barriers that prevent people from participating and using financial services to improve their lives. The empirical findings showed that knowledge regarding various financial services factors had significant impacts on getting financial access. Some variables such as profession, income level, knowledge regarding depositing and withdrawing money, and knowledge regarding interest rate highly affected the overall access to finance. The study's results provide valuable recommendations for the policymaker to improve financial inclusion in the developing country context. A comprehensive and long-term education program should be delivered broadly to the rural population to make a big stride in financial inclusion, a key driver of poverty reduction and prosperity boosting.

scholarly journals From financial exclusion to financial inclusion through microfinance: the case of rural Zimbabwe

2014 ◽  
Vol 11 (4) ◽  
pp. 447-455 ◽  
Author(s):  
Patricia Lindelwa Makoni
Keyword(s):  
Rural Communities ◽  
Rural Areas ◽  
Financial Services ◽  
Rural Population ◽  
Commercial Banks ◽  
Large Population ◽  
Study Data ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Financial Exclusion

This paper sought to shed light on the status of rural banking and financial exclusion in Zimbabwe. Various reasons put forth by existing commercial banks were examined to understand why a large population of the country remains unbanked. These ranged from perceptions of the rural communities being too poor to need financial services to real economic and business decisions. Various literature on banking the poor and success stories from other countries were discussed in the literature. To meet the objectives of the study, data gathered from various individuals, commercial banks and microfinance institutions based in Matabeleland North was analysed. It was found that the rural population is in fact largely bankable. However, due to inadequate basic infrastructure in the rural areas, it did not make business sense for established banks to service that population. Banks exist to make a profit and the burden of ensuring financial inclusion of the rural population was left mainly to microfinance institutions which however faced a serious of challenges ranging.

Determinants of Successful Financial Inclusion in Low-Income Rural Population

2020 ◽  
Vol 68 (1) ◽  
pp. 82-100
Author(s):  
Yashwant Kumar Vaid ◽  
Vikram Singh ◽  
Monika Sethi
Keyword(s):  
Low Income ◽  
Rural Population ◽  
Geographical Area ◽  
Developing Nations ◽  
Point Of View ◽  
Financial Inclusion ◽  
Main Concern ◽  
Policy Makers ◽  
Developing Nation ◽  
Financial Products

Finance plays a key role in the growth of developed as well as developing nations. A financially well included society leads to stronger growth. Financial inclusion aims at providing easy and affordable access to financial products and services. The main concern for any developing nation from a growth point of view is advancement of low-income rural population just as much as the high-income population. Taking a note of this, identifying the key determinants that would lead to successful financial inclusion of low-income rural population is equally, if not more, important. The inclusion strategies have to be built around these determinants to promote inclusion and thus, a clear picture of these determinants is a must have for strategy and policy makers. Though the factors may be somewhat similar across the nation, but their significance and impact on financial inclusion varies greatly from one geographical area to other. In line with this, the purpose of this study is to identify the dimensions of successful financial inclusion in the low-income rural segments with special reference to Raipur, Chhattisgarh. The study uses factor analysis to identify the determinants and path analysis to analyse the significance of these factors in financial inclusion.

Quality financial inclusion and its determinants in South Africa: evidence from survey data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kudakwashe Joshua Chipunza ◽  
Ashenafi Fanta
Keyword(s):  
South Africa ◽  
Survey Data ◽  
Financial Services ◽  
Ordinary Least Squares ◽  
Financial Inclusion ◽  
Least Squares Regression ◽  
Content Type ◽  
Demographic Groups ◽  
Financial Products ◽  
Data Limitations

PurposeThe study measured quality financial inclusion, a more comprehensive measure of financial inclusion, and examined its determinants at a consumer level in South Africa.Design/methodology/approachThis study leveraged on FinScope 2015 survey data to compute a quality financial inclusion index using polychoric principal component analysis. Subsequently, a heteroscedasticity consistent ordinary least squares regression model was employed to assess determinants of quality financial inclusion.FindingsThe empirical findings indicated that gender, education, financial literacy, income, location and geographical proximity determine quality financial inclusion. These findings could inform policymakers and financial services providers on how quality financial inclusion can be promoted through tailoring financial products for various socio-demographic groups.Research limitations/implicationsDue to data limitations, the study was confined to South Africa and did not capture digital financial inclusion. Hence, future studies could replicate the study in Sub-Saharan Africa's context and compute an index that captures digital financial inclusion.Practical implicationsThese findings could inform policymakers and financial services providers on how quality financial inclusion can be promoted through tailoring financial products for various socio-demographic groups.Originality/valueThis study proposed a more comprehensive measure of quality financial inclusion from a demand-side perspective by accounting for important dimensions that include diversity, affordability, appropriateness and flexibility of financial products and services.

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