Financial Inclusion in Pondicherry Region:Evidence from Accessibility and Usage of Banking Services

The concept of "financial inclusion" is commonly defined as people having easy access to a wide range of formal banking services which are provided at an affordable cost. These services include ownership of bank accounts, savings, availability of credit, remittance, transfers and insurance. The concept of financial inclusion has attracted significant attention in recent times. Various initiatives have been undertaken by Government of India and Reserve Bank of India to promote financial inclusion at ground level. A declaration by World Bank to achieve universal financial access by 2020 is another evidence of financial inclusion being recognized at the global level. The purpose of this paper is to identify the demographic factors which influence the extent of financial inclusion in Pondicherry region. Results of this study indicate that frequency of usage, ease of using banking products and physical accessibility of bank branch show significant impact on level of financial inclusion in Pondicherry. It is also found that higher income, better education, gender and occupation have a significant influence on frequency of usage, ease of using banking products and physical accessibility of bank branch are highly associated with the level of financial inclusion in Pondicherry region.