Asian Journal of Management

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

Qualitative Variables Affecting Financial Inclusion in India:Exploring Future Direction for Policy Makers


Affiliations
1 Centre for Management Studies, Jamia Millia Islamia – A Central University, Jamia Nagar, New Delhi-110025, India
     

   Subscribe/Renew Journal


The 12th five year plan of India portrays inclusive growth as one of its key objectives. This makes development of rural India a key component for the overall progress. Financial Inclusion Plan (FIP) is a highly effective way to achieve such inclusive growth. As indicated by researchers, the lacunae of policy implementation are the impediments for faster inclusive financial growth in India. Government wants to increase financial inclusion and measure it on the basis of quantitative variables, reasonable attention has not been given to qualitative variables. This study identifies and analyses the qualitative variables which are the possible blockades in the way of financial inclusion. Responses have been collected, with the help of a structured questionnaire, from 206 respondents from the rural areas of Jammu and Kashmir. It is concluded that there is low to moderate level of financial literacy among the prospective beneficiaries and government’s efforts are not sufficient to provide them adequate information. Cumbersome banking procedures, unsuitable products/services, absence of bank branches, illiteracy, social exclusion etc are the other factors that are holding the growth of financial inclusion in India.

Keywords

Financial Policy, Inclusion, Qualitative, India, J&K.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Agrawal, A. The need for financial inclusion with an Indian perspective. Financial Intermediation.2008; 41(5):569-647.

  • Bagli, S., and Datta, P. A study of financial inclusion in India. Radix International Journal of Economics and Business Management.2012; 1(8): 1-18.

  • Barman, D., Mathur, H., and Kalra, V. Role of microfinance interventions in financial inclusion: a comparative study of microfinance models. The Journal of Business Perspective.2009; 13(3): 51-59.

  • Beck, T., Kunt, A., and Levine, R. Finance, Inequality and the Poor. Journal of Economic Growth, 2007; 12(1): 27-49.

  • Beck, T., Kunt, A., and Peria, M. reaching Out: Access to and use of banking services across countries. Journal of Financial Economics.2007; 85(1): 234-266.

  • Bhatia, N., and Chatterjee, A. Financial inclusion in the slums of Mumbai. Economic and Political Weekly2010; 45(42): 23-26.

  • Burgess, R., and Pande, R. Can rural banks reduce poverty? Evidence from the Indian social experiment. American Economic Review.2005; 95 (3): 780-795.

  • Calderon, C. and Liu, L. The direction of causality between financial development and growth. Journal of Development Economics.2003; 72(1): 321-334.

  • Chakravarty, R., and Pal. Measuring financial inclusion: An Axiomatic approach. East Asian Bureau of Economic Research, working paper 22776.2010

  • Chandra, S. Growth through financial inclusion in India. Journal of International Business Ethics. 2010; 4(1): 28-41.

  • Chavan, P., and Birajdar, B. Micro finance and financial inclusion of women: an evaluation. Reserve Bank of India Occasional Papers. 2009; 30(2): 109-129.

  • Chibba, M. Financial inclusion, poverty reduction and the millennium development goals. European Journal of Development Research.2009; 21: 213-230.

  • Dev, M. Financial inclusion: issues and challenges. Economic and Political Weekly.2006; 41(41): 4310-4313.

  • Dixit R., and Ghosh M. Financial Inclusion for inclusive growth of India-A study of Indian states. International Journal of Business Management and Research. 2013;3(1): 147-156.

  • Dutta, T. Market segmentation and effective product design for financial institutions to achieve ‘financial inclusion’ in India. Global Journal of Multidisciplinary Studies. 2015; 4(4).

  • Gangopadhyay, S. How can technology facilitate financial inclusion in India? A discussion paper. Review of Market Integration.2009; 1(2): 223-256.

  • Gattoo, M., and Akhtar, J. The economics of access to finance and status of financial inclusion in India. Asian Journal of Development Matters.2014;8(1): 1-15.

  • Gupta, S. Approaches to financial inclusion- a case study of delivery model of Jammu and Kashmir bank ltd. Asian Journal of Multidimensional Research.2012;1(3): 171-182.

  • Handoo, J. Financial inclusion in India: integration of technology, policy and market at the bottom of the pyramid. Asian Economic Review.2010; 15(7):123-147.

  • Kammath, R. Financial Inclusion vis-a-vis social banking. Economic and Political Weekly.2007; 42(15): 1334-1335.

  • Kumar, A. Financial inclusion in India- an overview. ACADEMICIA.2015; 5(1):159-164.

  • Kumar, M. Financial Inclusion in India. Zenith International Journal of Business Economics and Management Research.2014; 4(2): 1-11.

  • Kumar, P., and Laha, A. Financial Inclusion and Human Development in India: An Inter-State Analysis. Indian Journal of Human Development.2011; 5(1): 61-77.

  • Kuriakose, F., and Iyer, D. Understanding financial inclusion through deconstructing human development approach and capabilities theory. Sahulat Journal of Microfinance.2015; 1(3): 13-31.

  • Leeladhar, V. Taking banking services to the common man-financial inclusion. Reserve Bank of India Bulletin (January) 2006; 73-77.

  • Leyshon, A. and Thrift, N. Geographies of financial exclusion-financial abandonment in Britain and the United States. Transactions of the Institute of British Geographers, 1995; 20(3): 312-341.

  • Leyshon, A., Thrift, N., and Pratt, D. Reading Financial Consumers: Texts, Consumers and Financial Literacy. Environment and Planning D-Society and Space.1998; 16(1): 29-55.

  • Madurai, K. Financial inclusion in India.2011; Retrieved from http://ssrn.com/abstract=1745467.

  • Mahadeva, M. 2008. Financial growth in India. Whither financial inclusion? The Journal of Applied Economic Research. 2008;2(2): 177-197.

  • Mahajan, V. Measuring financial access: Outlining the scope of current data collection efforts. The World Bank Financial Sector vice Presidency.2005; 8:1-9.

  • Mehar, L. Financial inclusion in India. Innovative Journal of Business and Management, 2005; 3(4): 42-46.

  • Mehrotra, A., and Yetman, J. Financial inclusion- issues for central banks. BIS Quarterly Review, 2015; 83-93.

  • Mir, S., Bhat, I., and Zarger, F. A study on the effectiveness of the financial inclusion plan in the state of Jammu and Kashmir: Initiatives by the major banks. Global Journal of Finance and Management.2014; 6(3): 281-286.

  • Nalini, G. 2011. Financial literacy of micro, small and medium entrepreneurs. International Journal of Management Research and Review.2011;1(5): 189-197.

  • Natu, A., Bansal, A., Kurian, A., Khurana, G., and Bhansal, T. Linking financial inclusion with social security schemes. Institute for Financial Management and Research, Working paper series no. 22.2008: 1-31.

  • Paramasivan, C., and Kumar, V. Overview of financial inclusion in India. International Journal of Management and Development Studies. 2013;2(3): 45-49.

  • Rakesh, M. Economic growth, financial deepening and financial inclusion. Economic and Political Weekly, November, 2006; 1013-1023.

  • Rao, K. Financial inclusion: introspection. Economics and Political Weekly, 2007; 42(5): 355-360.

  • Rashid, A., and Sangmi, M. Financial inclusion in Jammu and Kashmir: a study on bankers’ initiatives. Journal of Arts, Science and Commerce.2012; 3(4): 115-123.

  • Sarma, M., and Pais, J. Financial inclusion and development. Journal of International Development, 2010; 23(5): 613-628.

  • Shankar, S. Financial inclusion in India: do micro finance institutions address access barriers? ACRN Journal of Entrepreneurship Perspectives.2013; 2(1): 60-74.

  • Sharma, A., and Kukreja, S.An analytical study: relevance of financial inclusion for developing nations. International Journal of Engineering and Science, 2013; 2(6): 15-20.

  • Singh, A., and Tandon, P. Financial inclusion in India: an analysis. International Journal of Marketing, Financial Services and Management Research.2008; 1(6): 41-54.

  • Srinivasan, N. Policy issues and role of banking system in financial inclusion. Economics and Political Weekly.2007; 42(30): 3091-3095.

  • Swamy, V. Financial inclusion in India: an evaluation of the coverage, progress and the trend. The IUP Journal of Financial Economics.2011;9(2): 7-26.

  • Thapar, A. A study on the effectiveness of financial inclusion in India. International Journal of Business and Management Research.2013; 3(6): 211-216.


Abstract Views: 286

PDF Views: 0




  • Qualitative Variables Affecting Financial Inclusion in India:Exploring Future Direction for Policy Makers

Abstract Views: 286  |  PDF Views: 0

Authors

Saif Siddiqui
Centre for Management Studies, Jamia Millia Islamia – A Central University, Jamia Nagar, New Delhi-110025, India
Sumaira Jan
Centre for Management Studies, Jamia Millia Islamia – A Central University, Jamia Nagar, New Delhi-110025, India

Abstract


The 12th five year plan of India portrays inclusive growth as one of its key objectives. This makes development of rural India a key component for the overall progress. Financial Inclusion Plan (FIP) is a highly effective way to achieve such inclusive growth. As indicated by researchers, the lacunae of policy implementation are the impediments for faster inclusive financial growth in India. Government wants to increase financial inclusion and measure it on the basis of quantitative variables, reasonable attention has not been given to qualitative variables. This study identifies and analyses the qualitative variables which are the possible blockades in the way of financial inclusion. Responses have been collected, with the help of a structured questionnaire, from 206 respondents from the rural areas of Jammu and Kashmir. It is concluded that there is low to moderate level of financial literacy among the prospective beneficiaries and government’s efforts are not sufficient to provide them adequate information. Cumbersome banking procedures, unsuitable products/services, absence of bank branches, illiteracy, social exclusion etc are the other factors that are holding the growth of financial inclusion in India.

Keywords


Financial Policy, Inclusion, Qualitative, India, J&K.

References