Abhigyan

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Factors that Matter for Financial Inclusion:Assessment of Empirical Evidences, with Special Reference to India


Affiliations
1 Department of Commerce, Guru Nanak Dev University, Amritsar, India
     

   Subscribe/Renew Journal


The issue of financial inclusion has become a developmental policy priority in almost all countries, including India. It therefore becomes important to find out and differentiate between the factors that matter for and against financial inclusion. The current article is an aim in this regard, and establishes a strong conceptual framework by carefully reviewing the existing evidences on the determinants of financial inclusion (with special reference to India). Among the various socio-economic variables, income is the most significant enabler of financial inclusion. Other than income; literacy, education, and absence of income inequality affect financial access/inclusion positively. In terms of the infrastructure related variables; road, telephone and internet connectivity foster greater financial inclusion. Among the banking variables, easy banking procedures, low credit/deposits ratio and NPAs, and high branch density enable greater financial services' availability to 'all'.

Keywords

Financial Inclusion, Financial Access, Inclusive Finance, Social Development, Social Banking.
User
Subscription Login to verify subscription
Notifications
Font Size

  • Akudugu, M. A. (2013). The determinants of financial inclusion in Western Africa: Insights from Ghana. Research Journal of Finance and Accounting, 4 (8), 1-10.

  • Bhattacharjee, M., & Rajeev, M. (2013). Identifying credit constrained farmers: An alternative approach.

  • Retrieved from http://www.isec.ac.in/WP%20304%20-%20Manojit%20Bhattacharjee%20 and%20Meenakshi%20Rajeev.pdf.

  • Chhikara, K. S., & Kodan, A. S. (2011). Financial inclusion, development and its determinants: An evidence of Indian state. Asian Economic Review, 53(1), 115-134.

  • Chithra, N., & Selvam, M. (2013). Determinants of financial inclusion: An empirical study on the inter-state variations in India. Retrieved from SSRN: http://ssrn.com/abstract=2296096 or http://dx.doi.org/ 10.2139/ssrn.2296096.

  • Clamara, N., Peña, X., & Tuesta, D. (2014). Factors that matter for financial inclusion: Evidence from Peru. The International Journal of Finance, n.d. Retrieved from https://www.bbvaresearch.com/ KETD/fbin/mult/WP_1409_tcm348-426338.pdf.

  • Ghosh (2012). Determinants of banking outreach: An Empirical assessment of Indian States. Journal of Development Areas, 46 (2), 269-295.

  • Karpowicz, M. I. (2014). Financial inclusion, growth and inequality: A model application to Colombia (No. 14-166). International Monetary Fund.

  • Kumar, N. (2013). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5 (1), 4-19.

  • Kuri, P. K., & Laha, D. (2011). Financial inclusion and human development in India: An inter-state analysis. Indian Journal of Human Development, 5 (1), 61-77.

  • Lokho, C., & Saurav, M. (2013). Factors affecting access to financial services in North East India.

  • Retrived from https://www.researchgate.net/.../248706961_Factors_affecting_access_to_financial_ services.pdf.

  • Mehrotra, N., Puhazhendhi, V., Nair, G., & Sahoo, B. (2009). Financial inclusion-an Overview (Occasional Paper No. 48). Mumbai: National Bank for Agriculture and Rural Development (NABARD).

  • Pal, R., & Pal, R. (2012). Income related inequality in financial inclusion and role of banks: Evidence on financial exclusion in India (No. 2012-013). Indira Gandhi Institute of Development Research, Mumbai, India.

  • Peach, N. D., Van, A. D., & Hogarth, J. M. (2013). A cross-country analysis of unbanked within the OECD. Retrieved from digitalcommons.georgefox.edu.

  • RBI (2008). Report of the Committee on Financial Inclusion. Government of India.

  • Sangwan, S.S. (2013). State wise comparison of financial inclusion in India. Chandigarh: Center for Research in Rural and Industrial Development.

  • Sarma, M., & Pais, J. (2011). Financial inclusion and development. Journal of International Development, 23 (5), 613-628.

  • Tuesta, D., Sorensen, G., Haring, A., & Clamara, N. (2015). Financial inclusion and its determinants: The case of Argentina (No. 1503). BBVA Bank, Economic Research Department.

  • United Nations (2006). Building inclusive financial sectors for development. New York: United Nations.


Abstract Views: 231

PDF Views: 0




  • Factors that Matter for Financial Inclusion:Assessment of Empirical Evidences, with Special Reference to India

Abstract Views: 231  |  PDF Views: 0

Authors

Kajole Nanda
Department of Commerce, Guru Nanak Dev University, Amritsar, India

Abstract


The issue of financial inclusion has become a developmental policy priority in almost all countries, including India. It therefore becomes important to find out and differentiate between the factors that matter for and against financial inclusion. The current article is an aim in this regard, and establishes a strong conceptual framework by carefully reviewing the existing evidences on the determinants of financial inclusion (with special reference to India). Among the various socio-economic variables, income is the most significant enabler of financial inclusion. Other than income; literacy, education, and absence of income inequality affect financial access/inclusion positively. In terms of the infrastructure related variables; road, telephone and internet connectivity foster greater financial inclusion. Among the banking variables, easy banking procedures, low credit/deposits ratio and NPAs, and high branch density enable greater financial services' availability to 'all'.

Keywords


Financial Inclusion, Financial Access, Inclusive Finance, Social Development, Social Banking.

References