Developing and Validating Financial Inclusion Measuring Scale for Rural Inhabitants in Tamil Nadu

Purpose The purpose of this paper is to identify factors relevant for financial inclusion (FI) and establish a model that shows how these factors lead to economic development (ED) through FI. Design/methodology/approach Primary data were collected through structured questionnaire. Out of 350, 311 respondents accurately filled the questionnaire. The data were collected from rural areas of Tamil Nadu. Exploratory factor analysis has been applied to evaluate drivers/factors relevant for FI. Confirmatory factor analysis has been applied to establish reliability and validity of the identified factors. A structural model has been proposed and empirically tested for ED through FI. Findings The main findings of the current paper are as follows: online banking (OB), understanding banking services (UBS) and financial literacy (FL) are the drivers of FI; FI can lead to ED, as the proposed model of ED, through FI, is supported in the paper (χ2/degree of freedom and CMIN/degree of freedom are less than 3; GFI and AGFI are more than 0.90 and 0.85, respectively). Behavior of the people, with respect to mode of financial transactions, has changed due to demonetization. (The χ2 test for mode of financial transaction is significant). Research limitations/implications The geographical reach of the sample should cover the whole India. The sample should also have equal representation from rural and urban areas. Practical implications The identified factors for FI (OB, UBS and FL) should be more focused to bring about better results for FI in India. These factors can lead to a more effective execution of FI initiatives. In addition to this, policy makers can be confident of relying upon FI as a tool for ED. Originality/value The identified three drivers for FI have not been explored earlier. In addition to this, ED (through FI) in the form of structural model has also not been tested earlier. Government of India can realign their policies toward FI by using findings of this paper. In addition to increasing the access of formal financial system to masses, more thrust can be given to OB and FL for better results of FI in India.

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Financial Inclusion Index: A Customized Regional Model with Reference to Economically Most Backward Districts of Tamil Nadu, India

Mediterranean Journal of Social Sciences ◽

10.5901/mjss.2015.v6n6p209 ◽

2015 ◽

Author(s):

M. Sriram ◽

N. Sundaram

Keyword(s):

Tamil Nadu ◽

Regional Model ◽

Financial Inclusion

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Understanding the Financial Inclusion Moderating Effect on Negative Attitude of Muslim Population towards Banking Services in Tamil Nadu, India

International Journal of Psychosocial Rehabilitation ◽

10.37200/ijpr/v24i5/pr202033 ◽

2020 ◽

Vol 24 (5) ◽

pp. 3251-3257

Author(s):

Abubecker F.

Keyword(s):

Tamil Nadu ◽

Negative Attitude ◽

Moderating Effect ◽

Financial Inclusion ◽

Banking Services ◽

Muslim Population

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Degree of Influence of Determinants on Financial Inclusion-A Study among Rural Households of Tamil Nadu

Indian Journal of Economics and Development ◽

10.5958/2322-0430.2019.00038.6 ◽

2019 ◽

Vol 15 (2) ◽

pp. 307

Author(s):

B. Krishnakumare ◽

Saurabh Singh

Keyword(s):

Tamil Nadu ◽

Rural Households ◽

Financial Inclusion

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Stakeholders’ Perception of Coconut Palm Insurance Scheme: A Study on the Coastal States of India

CORD ◽

10.37833/cord.v29i1.91 ◽

2013 ◽

Vol 29 (1) ◽

pp. 11

Author(s):

D. Rajasenan ◽

Rajeev B.

Keyword(s):

Random Sampling ◽

Tamil Nadu ◽

Sampling Technique ◽

Coconut Palm ◽

Financial Inclusion ◽

Insurance Scheme ◽

Pests And Diseases ◽

Natural Factors ◽

Multi Stage ◽

Analysis Point

The Coconut Palm Insurance Scheme (CPIS) is a mechanism, devised to endow effective risk management aid, to those coconut growers who are likely to be impacted by non-preventable natural factors as well as pests and diseases. This study analyses the perception of the stakeholders for drawing empirical validity, so as to appraise sustainability of CPIS as a measure towards financial inclusion. 528 samples, encompassing Kerala, Karnataka, Tamil Nadu, Goa and Maharashtra states, classified into three regions, were taken using multi-stage proportionate random sampling technique with a view to develop a recurrent scheme to assist the coconut growers. Analyses and inferences, based on Factor Analysis, point out that growers across the regions are convinced that the scheme is necessary for a crop like coconut and, accordingly, the scheme seems to have achieved its goal.

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