Financial Inclusion

2020 ◽  
Vol 9 (4) ◽  
pp. 33-57
Author(s):  
Anusha Goel
Keyword(s):  
Financial Services ◽  
Composite Index ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Access To Finance ◽  
Indian States ◽  
Contemporary Issue ◽  
Positive Growth ◽  
Log Linear ◽  
Over Time

Financial inclusion is a contemporary issue that has featured in the reforms agenda of several countries. Although it has gained momentum over time, the access to finance and basic financial services remained highly skewed across demographic and geographic segments. The purpose of the study is to analyse the performance of states/union territories in each dimension and composite index of financial inclusion. The focus is on ranking Indian states and union territories, identifying the major changes in ranks during 2000-01 to 2016-17, and finding the rate of expansion. The index of financial inclusion is calculated using three dimensions as per Sarma methodology. Log linear regression model is used to determine the growth rate in the measure of inclusion. The findings show that the index of financial inclusion value has enhanced in 28 and declined in four states/union territories out a group of 32 states/union territories. While a robust positive growth is observed in 23 states/union territories, the deterioration turns out to be significant in Chandigarh only.

scholarly journals Revisiting the Impact of Mobile Banking in Financial Inclusion Among the Developing Countries

2021 ◽  
Vol 12 (2) ◽  
pp. 62
Author(s):  
Ummahani Akter ◽  
S. M. Rakibul Anwar ◽  
Riduanul Mustafa ◽  
Zulfiqure Ali
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Bandwidth Allocation ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Future Research ◽  
Mobile Banking ◽  
Innovative Strategies ◽  
Financial Products ◽  
The Impact

Financial inclusion ensures financial products and services at reasonable rates for individuals and aims to introduce unbanked people into banking and financial services. The study aims to explore the effect that mobile banking facilities have on financial inclusion in 17 developing countries. From 2011 to 2017, this study took data from the three dimensions of financial inclusion called "Penetration," "Access," and "Uses". This paper took the Sarma model of Index of Financial Inclusion (IFI) to measure financial inclusion. This paper incorporates mobile money accounts as a "penetration" variable and Mobile banking outlet as an "Access" variable with existing model variables to quantify the effect of mobile banking. This research finds that mobile banking positively impacts the selected countries, though the degree of the changes is not symmetric. African regional countries have improved their financial inclusion after introducing mobile banking much better compared to other regions. This study is limited to examining mobile banking effects on selected emerging countries only. Future research may be devoted to developing more innovative strategies and tools to reach out to unbanked people, including people who face disparities in mobile phone ownership and bandwidth allocation.

scholarly journals A GLIMPSE INTO THE LEVEL OF FINANCIAL INCLUSION IN TRIPURA

2020 ◽  
pp. 1-5
Author(s):  
Sayan Saha ◽  
Kiran Shankar Chakraborty
Keyword(s):  
Financial Services ◽  
Composite Index ◽  
Secondary Data ◽  
State Level ◽  
Pilot Project ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Annual Reports ◽  
Banking Services ◽  
Reserve Bank

The term ‘Financial Inclusion’ signifies a process of ensuring delivery of financial services as well as banking services to the vulnerable groups at the point of need, adequately at an affordable cost. The concept of ‘Financial Inclusion’ was accentuated in 2003 by Kofi Annan, former General Secretary of United Nations. Such, efforts were undertaken by the Reserve Bank of India (RBI) in 2005 and the said policy as already mentioned in a pilot project was first implemented by Indian Bank. Probably, by implementing such policy resolution a vast section of the rural disadvantaged people in India was gradually coming under the ambit of formal banking services. The main aim of this paper is to assess the level of financial inclusion in Tripura based on composite Index. The study conducted in the four districts of Tripura state. The present study relies on secondary data. Secondary data collected from State Level Bankers’ Committee Reports, NEDFi databank, Economic Reviews and RBI Annual Reports. Through this paper Index of Financial Inclusion (IFI) has been used to assess the level of financial inclusion in Tripura.

The Quest for Financial Inclusion and Microfinance Institutions in India

2019 ◽  
pp. 266-280
Author(s):  
Amir Manzoor
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Access To Finance ◽  
Efficient Manner ◽  
Societal Development

Financial inclusion refers to providing unconditional and affordable access to financial services in an effective and efficient manner for all needy people. Microfinance institutions (MFIs) play an important role in financial inclusion and societal development. One important part of the financial inclusion strategy is to provide access to finance to those people belonging to remote and disadvantaged areas. The aim of this chapter is to study the concept of microfinance and microfinance institutions and its impact on financial inclusion in India. This study provides recommendations to grow and sustain microfinance institutions to achieve greater financial inclusion.

Financial inclusion in India: an application of TOPSIS

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 328-351 ◽  
Author(s):  
Priyanka Yadav ◽  
Anil Kumar Sharma
Keyword(s):  
Composite Index ◽  
Financial Inclusion ◽  
Critical Parameters ◽  
Infrastructure Development ◽  
Indian States ◽  
Content Type ◽  
Factors Affecting ◽  
Secondary Sources ◽  
Order Preference ◽  
Farmer Suicides

Purpose The purpose of this paper is to combine the critical parameters used to study financial inclusion into a composite index. The idea is to rank Indian states and union territories (UTs) on the basis of this index, determine change in ranks during 2011 to 2014 and identify factors affecting high/low scores on the index. Design/methodology/approach Data for the study were collected from secondary sources published by Reserve Bank of India (RBI) and Central Statistical Organization. Applying technique of order preference by similarity to ideal solution (TOPSIS), a composite multi-dimensional index of financial inclusion (IFI) has been built by using three broad parameters of penetration, availability and usage of banking services. Factors significantly influencing scores of states/UTs on IFI were identified using multiple regression analysis. Findings The value of financial inclusion for India on composite IFI has increased by 0.045 points during the study period. Share of agriculture to state gross domestic product, literacy ratio, population density, infrastructure development and farmer suicides are significant factors affecting financial inclusion. Practical implications The multi-dimensional IFI is a useful tool to measure financial inclusion using several parameters for various states/regions. The index can also be used to compare the performance of states/regions over same/different periods. Originality/value This paper is unique in its attempt to construct multi-dimensional IFI for Indian states/UTs by applying TOPSIS. It will prove useful for future researchers by combining several aspects of financial inclusion into single index.

Financial Inclusion and Quality of Life: Empirical Evidences from Indian States with Special Reference to West Bengal

2021 ◽  
pp. 0258042X2110261
Author(s):  
Avisek Sen ◽  
Arindam Laha
Keyword(s):  
Quality Of Life ◽  
Human Development ◽  
Financial Literacy ◽  
Financial Services ◽  
West Bengal ◽  
Well Being ◽  
Financial Inclusion ◽  
Indian States ◽  
The Relationship

The conceptual connection between financial inclusion and quality of life (QOL) can be realized by a two-way relationships. On the one hand, financial inclusion induces QOL, while an improvement in QOL facilitates in generating demand for financial services, on the other hand. Even though several studies seek to find out the role of finance in the well-being of the population (especially human development), this article concentrates on QOL to eliminate the financial attributes of development (as captured by income dimension in Human Development Index). In this sense, this study addresses the research gap in the existing literature by establishing the relationship between financial inclusion and QOL. Specifically, the article attempts to explain the two-way tie-up between the financial inclusion and the QOL in India in the context of Indian states, in general, and West Bengal, in particular. Canonical correlation (CC; a multivariate data analysis technique) is used to estimate the relation between the financial inclusion and QOL. Empirical results suggest that western and the southern Indian states excel in the attainment of education, health and other amenities-based indicators of QOL. The conditions of the eastern part of the country in case of financial inclusion and the QOL are not at all satisfactory. In case of West Bengal, Kolkata being the state capital is performing well in both the factors. CC results suggest a significant association between the financial inclusion and QOL across Indian states. The deposit account of financial inclusion indicator and the infant survival rate of QOL indicator are playing a pivotal role in the relationship (both the Indian states and districts of West Bengal as well). This article establishes the effectiveness of the demand following approach of financial inclusion than that of supply leading approach. As the demand-side aspect of financial inclusion is becoming more important to the policymakers, the next policy priority of financial inclusion measures could be the generation of awareness on the financial services through financial literacy. JEL Codes: G2, O15, C39

The Quest for Financial Inclusion and Microfinance Institutions in India

2021 ◽  
pp. 358-372
Author(s):  
Amir Manzoor
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Access To Finance ◽  
Efficient Manner ◽  
Societal Development

Financial inclusion refers to providing unconditional and affordable access to financial services in an effective and efficient manner for all needy people. Microfinance institutions (MFIs) play an important role in financial inclusion and societal development. One important part of the financial inclusion strategy is to provide access to finance to those people belonging to remote and disadvantaged areas. The aim of this chapter is to study the concept of microfinance and microfinance institutions and its impact on financial inclusion in India. This study provides recommendations to grow and sustain microfinance institutions to achieve greater financial inclusion.

scholarly journals Optimization Of The Government’s Role In Supporting The Socialization Strategy Of Sharia Pawn Products

IKONOMIKA ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 1-12
Author(s):  
Ning Karnawijaya
Keyword(s):  
Key Words ◽  
Market Share ◽  
Financial Services ◽  
Financial Inclusion ◽  
Role Of Government ◽  
Strategic Role ◽  
The Government ◽  
Role Of The Government ◽  
Over Time

Sharia pawn products (rahn)  are one of the sharia financial services products that are growing over time. However, this development still requires attention in order to achieve financial inclusion and increase market share of sharia pawn products. One of the efforts to realize this goal is the socialization strategy. The success of socialization is not only the responsibility of the Islamic financial services institution, but also the role and support of other stakeholders, especially the government. The government through BI and OJK has a strategic role in helping these efforts. Optimizing the role of the government in supporting the dissemination of sharia mortgage products can be done with strategic steps namely targetting, integrating, understanding, and implementing. Key words      : Role of government, Socialization, Sharia pawning

Does access to finance alleviate poverty? A case study of SGSY beneficiaries in Kashmir Valley

2017 ◽  
Vol 44 (8) ◽  
pp. 1032-1045 ◽  
Author(s):  
Audil Rashid Khaki ◽  
Mohi-ud-Din Sangmi
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Multidimensional Poverty ◽  
Financial Inclusion ◽  
Access To Finance ◽  
Content Type ◽  
Skill Sets ◽  
Multidimensional Poverty Index ◽  
Quasi Experimental ◽  
The Impact

Purpose The purpose of this paper is to question and analyse the basic tenets of financial inclusion and to understand the relationship between access to finance and poverty reduction. The paper attempts to elaborate the importance of unrestrained access to finance in building an inclusive financial sector, which is believed to reduce poverty by enabling poor and excluded people to participate in the economic process by employing their skill sets, labour and innovations in the productive activities of the economy, thereby not only increasing their own welfare and standards of living but also contributing at very high marginal returns to the overall economic growth. Design/methodology/approach This study evaluates the progression of the participants/beneficiaries of National Rural Livelihood Mission Scheme (erstwhile Swarnjayanti Gram Swarozgar Yojana Scheme) across various dimensions of poverty by making use of the Multidimensional Poverty Index (MPI). Findings The results suggest that the participation has in fact lead to increase in the standard of living, thereby reducing multidimensional poverty. Further, the results suggest that participation does not reduce deprivations in the “education” dimension, whereas in all other dimensions reduction in deprivations is significant. The results also suggest that the programme under study seems to be seriously mistargeting by allocating the programme to non-poor sections rather than absolute poor. Research limitations/implications The study has been conducted without following the participants over a longer period of time. The study has adopted a pre-post methodology, collecting the responses at only one point using a reflexive quasi-experimental design which leads to a recall limitation. Originality/value The paper tries to evaluate the impact of access to financial inclusion through a new perspective – the MPI. The paper examines the targeting of government-sponsored programmes and the utility of such intervention in the changing milieu of financial services.

scholarly journals Informal Firms and Financial Inclusion: Status and Determinants

2014 ◽  
Vol 05 (03) ◽  
pp. 1440011 ◽  
Author(s):  
Subika Farazi
Keyword(s):  
Informal Economy ◽  
Financial Services ◽  
Developing World ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Access To Finance ◽  
Medium Enterprises ◽  
Operational Constraint

Many firms in the developing world — including a majority of micro, small, and medium enterprises (MSMEs) — operate in the informal economy. The informal firms face a variety of constraints, making it harder for them to do business and grow. Lack of access to finance is often cited as the biggest operational constraint these firms face. This paper documents the use of finance and financing patterns of informal firms, highlights differences between use of finance by formal and informal firms, and identifies the most significant characteristics of informal firms that are associated with higher use of financial services.

scholarly journals Factors influencing financial inclusion in India

2019 ◽  
Vol 3 (6) ◽  
pp. 23-32
Author(s):  
Keyword(s):  
Financial Institutions ◽  
Emerging Economies ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Indian States ◽  
Economic Progress ◽  
Factors Influencing ◽  
The Government ◽  
Modern Era

In the modern era, financial institutions serve as facilitators of economic progress and advancement. It is, therefore, necessary that people have equitable access to these financial institutions and the services they offer especially in emerging economies like India. Notwithstanding that the Indian banking sector has grown tremendously over the years in terms of performance and outreach, a large number of people have limited or zero access to the financial services. Financial Inclusion thus emerges as a necessity for it is equally beneficial to the banks as well as to the unserved population vis-a-vis the provision of new avenues for the former and financial services for the latter. In this study, we used panel data covering Indian states over a period of five years, from 2009 to 2013, to assess the factors influencing financial inclusion in the country. This study found that distinct state-effect is prevalent among the Indian states. Further, the number of factories as a proxy for industrialization and outstanding credit as a proxy for loans and advancements significantly reveal that income and employment generating schemes must be launched by the Government of India and the Central Bank of India keeping in mind the underprivileged lot.

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