scholarly journals Information Communication Technology (ICT) based Business Correspondence Model: A Growing Avenue for Ensuring Financial Inclusion in Rural India

2019 ◽  
Vol 8 (3) ◽  
pp. 2645-2652
Keyword(s):  
Communication Technology ◽  
Rural Areas ◽  
Financial Literacy ◽  
Descriptive Study ◽  
Financial Inclusion ◽  
Rural India ◽  
Information Communication ◽  
Successful Performance ◽  
Banking Activity ◽  
Business Correspondence

There is a genuine demand for finance requirement in the remote rural areas, absence of formal banking forced private lenders exploit the rural public. Government of India made several attempts towards financial inclusion of the poor, since independence, particularly in rural areas. Lack of financial literacy and no bank branch operation in their remote location restrains them to have access to formal banking. To overcome these constraints the RBI introduced ICT based Business Correspondences as agent to undertake banking activity in the year 2006.Though BC model was successfully performing well, but the growth and share of Business correspondence decreasing gradually. Further, penetration of the usage of mobile technology even in the remote rural areas opens positively for the successful performance of BCs in rural. Hence this research paper is a descriptive study which focuses on understanding BCs as a growing avenue for ensuring financial inclusion in Rural India.

Financial inclusion in the digital banking age: Lessons from rural India

2021 ◽  
pp. 1-22
Author(s):  
RAM A. CNAAN ◽  
MARQUISHA LAWRENCE SCOTT ◽  
H. DANIEL HEIST ◽  
M. S. MOODITHAYA
Keyword(s):  
Financial Literacy ◽  
Social Inclusion ◽  
Financial Inclusion ◽  
Rural India ◽  
Indian States ◽  
Banking Activity ◽  
Online Access ◽  
Digital Transactions ◽  
Financial Transactions

Abstract In the digital age, financial inclusion continues to be connected to social inclusion. While most personal financial transactions are shifting from cash currency to digital transactions, we must ensure that marginalized members of society are not unbanked and excluded from financial opportunities. Many countries are declaring their intention to transform to cashless societies. India is one such country. As a case study, we investigated rural Indian villages that declared themselves as cashless to assess the financial reality of villagers. We conducted a survey of households (N=3,159) within villages across seven Indian states. In each state, we studied a village that was officially declared cashless and a nearby comparison village. Our findings suggest that the comparison villages did as well as the cashless villages, as financial inclusion via digital banking was minimal to nonexistent. Alongside significant state variations, we found that financial literacy and online access were the best predictors of performing any digital banking activity. This study concludes with a warning against rushing toward digital banking and the formation of cashless societies, as marginalized populations may be excluded.

scholarly journals Proposed Theoretical Measurement Model for Financial Inclusion with Perspective of Refuge Inhabitants

2018 ◽  
Vol 7 (1) ◽  
pp. 21-25
Author(s):  
S. Sheik Abdullah ◽  
A. Krishna Kumar
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Measurement Model ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Poor People ◽  
Supply Side ◽  
Complex Processes

Financial inclusion takes into account the participation of vulnerable groups such as weaker sections of the society and low income groups, based on the extent of their access to financial services such as savings and payment account, credit insurance, pensions etc. Also the objective of financial inclusion exercise is easy availability of financial services which allows maximum investment in business opportunities, education, save for retirement, insurance against risks by the rural individuals and firms. The penetration of financial services in the rural areas of India is still very low. The factors responsible for this condition can be looked at from both supply side and demand side and the major reason for low penetration of financial services is, probably, lack of supply. The reasons for low demand for financial services could be low income level, lack of financial literacy, other bank accounts in the family, etc. On the other hand, the supply side factors include no bank branch in the vicinity, lack of suitable products meeting the needs of the poor people, complex processes and language barriers. There is no studies conducted earlier especially financial inclusion initiatives with refugee inhabitants. Therefore this study was undertaken to propose the model of refugee inhabitants towards financial inclusion initiatives by the banks. The exhibited model consisting four essential factors, which are very useful for measuring financial inclusion practices.

scholarly journals Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 277-299
Author(s):  
Salihah Sharizan ◽  
Nur Harena Redzuan ◽  
Romzie Rosman
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Financial Inclusion ◽  
Primary Data ◽  
Structured Interviews ◽  
Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

Information Communication Technology (ICT) for Rural Women’s Life in Bangladeshi Villages

2011 ◽  
pp. 171-183
Author(s):  
Md. Mahfuz Ashraf ◽  
Helena Grunfeld ◽  
Syeda Afza ◽  
Bushra Tahseen Malik
Keyword(s):  
Qualitative Research ◽  
Developing Countries ◽  
Communication Technology ◽  
Rural Women ◽  
Rural Areas ◽  
Development Process ◽  
Information Communication Technology ◽  
Information Communication ◽  
Development Agendas ◽  
The Impact

Information Communication Technology (ICT) has the potential to contribute to development, especially in rural areas of developing countries. But the mechanisms through which ICT can be combined with development agendas and an understanding of the actual development process and impacts of ICT are less well understood or properly defined in the academic literature. This research is an attempt to contribute to understanding this process by analysing the impact of two ICT initiatives in Bangladesh, aimed at improving the lives of rural women. An interpretive approach in the qualitative research tradition was adopted to identify emergent themes in this study. Our findings indicate that these ICT projects have significantly improved the socio-economic opportunities of many women. This paper will be useful for those academics, practitioners and policymakers who wish to enhance their understanding of ICT projects in rural areas of developing countries.

Challenges Faced by Banks for Financial Inclusion

2021 ◽  
pp. 311-335
Author(s):  
Deepa Pillai ◽  
Ravi Kumar V. V.
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Banking System ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand And Supply ◽  
Slum Dwellers ◽  
Primary Focus ◽  
Financial Awareness

The banking system in India significantly differs from that of other Asian nations due to unique geographic, social, and economic spread. In India, financially excluded sections largely comprise of marginal farmers, slum dwellers, migrants, women, self-employed, and senior citizens. There have been many formidable challenges in financial inclusion for bridging the gap between the demand and supply side. The chapter deliberates the challenges faced by banks for financial inclusion in context of infrastructure and institutional credit, risk perception, illiteracy, compliances, financial awareness, products, and services. Barriers to financial services expansion and product and service delivery in rural markets will be reviewed, and the primary focus will be on challenges with respect to marketing and delivery of financial services in rural areas. Reaching out to the excluded sections through financial literacy campaigns, and in the process marketing, the banks and their schemes would be an important step towards financial inclusion.

scholarly journals Digital Divide in Rural Tertiary Education

2019 ◽  
Vol 8 (9) ◽  
pp. 625-630
Keyword(s):  
Digital Divide ◽  
Communication Technology ◽  
Rural Areas ◽  
Tertiary Education ◽  
Global Scale ◽  
State University ◽  
Information Communication ◽  
Diffusion Of Information ◽  
New Frontier ◽  
Entire Picture

Recent studies show that Digital Divide continue to exist persistently despite efforts in a global scale to address the same through diffusion of Information Communication Technology (ICT). Inequality of access to technology as the main driving force behind these efforts, suffered deficiencies to fully capture the entire picture of the gap. The focus now is on the ability to use the technology among those who have access to it where skill and education plays a pivotal role. This is supported by findings of certain studies where digital skill particularly strategic and operational skill dictates a new frontier for bridging the gap especially in rural areas of developing countries where it is prevalent. To investigate whether there exists a digital divide among students enrolled with computer related programs in Eastern Samar State University Borongan City, Eastern Samar Philippines, the researchers conducted a survey using a questionnaire employed by Krause (2014) primarily based on LoTi H.E.A.T. Digital Age Survey developed by Dr. Chris Moersch of the LoTi Institute Carlsbad, California with modification. Data regarding gadgets and access to internet were solicited from the respondents including their perception about their related skills and later analyze and described using descriptive statistics. Results revealed that there exists a digital divide among the four groups of students (BSIT, BSCS, BSCpE, ACT) in terms of availability/access to internet and related technologies including a substantial deficiency in skill/knowledge to use the same

Information Communication Technology and Its Impact on Rural Community Economic Development

2012 ◽  
pp. 39-57
Author(s):  
Kenneth Pigg
Keyword(s):  
Economic Development ◽  
Rural Communities ◽  
Communication Technology ◽  
Rural Areas ◽  
Information Communication Technology ◽  
Social Conditions ◽  
Community Economic Development ◽  
Information Communication ◽  
Public And Private ◽  
Research Findings

Much rhetoric has been expended by researchers and advocates alike regarding the transformational effects of information communication technology (ICT) on economic and social conditions. Most such rhetoric posits very positive outcomes from the impending changes, economic development being just one of several. This research reports the findings of a three-year effort to determine whether such claims are actually being experienced in rural areas where access is often restricted because of public and private policies. The research findings highlight the importance of social conditions on the capacity of rural communities to effectively harness the potential of ICT for beneficial purposes.

Information Communication Technology and Its Impact on Rural Community Economic Development

2011 ◽  
pp. 263-282 ◽  
Author(s):  
Kenneth Pigg
Keyword(s):  
Economic Development ◽  
Rural Communities ◽  
Communication Technology ◽  
Rural Areas ◽  
Information Communication Technology ◽  
Social Conditions ◽  
Community Economic Development ◽  
Information Communication ◽  
Public And Private ◽  
Research Findings

Much rhetoric has been expended by researchers and advocates alike regarding the transformational effects of information communication technology (ICT) on economic and social conditions. Most such rhetoric posits very positive outcomes from the impending changes, economic development being just one of several. This research reports the findings of a three-year effort to determine whether such claims are actually being experienced in rural areas where access is often restricted because of public and private policies. The research findings highlight the importance of social conditions on the capacity of rural communities to effectively harness the potential of ICT for beneficial purposes.

Challenges Faced by Banks for Financial Inclusion

2018 ◽  
pp. 134-164
Author(s):  
Deepa Pillai ◽  
Ravi Kumar V. V.
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Banking System ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand And Supply ◽  
Slum Dwellers ◽  
Primary Focus ◽  
Financial Awareness

The banking system in India significantly differs from that of other Asian nations due to unique geographic, social, and economic spread. In India, financially excluded sections largely comprise of marginal farmers, slum dwellers, migrants, women, self-employed, and senior citizens. There have been many formidable challenges in financial inclusion for bridging the gap between the demand and supply side. The chapter deliberates the challenges faced by banks for financial inclusion in context of infrastructure and institutional credit, risk perception, illiteracy, compliances, financial awareness, products, and services. Barriers to financial services expansion and product and service delivery in rural markets will be reviewed, and the primary focus will be on challenges with respect to marketing and delivery of financial services in rural areas. Reaching out to the excluded sections through financial literacy campaigns, and in the process marketing, the banks and their schemes would be an important step towards financial inclusion.

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