Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

Index of Household Financial Inclusion (IHFI):An Analysis of Kadmat Island of Lakshadweep


Affiliations
1 Post Graduate Department of Economics, Calicut University Center, Kadmat, Lakshadweep, India
 

Background/Objectives: The purpose of this present study is to introduce the financial inclusion index at the household level and compare the inclusiveness of the Kadmat Island of Lakshadweep.

Methods/Statistical Analysis: Based on the primary data collected from 100 households a separate financial inclusion index was composed in two dimensions and incorporated into a single index using the scoring and weighted average method. This unique index can be used to compare the inclusiveness of the financial sector across the households of any Island economy.

Findings: The entire households attained maximum financial inclusions in terms of provision of the financial services while there is greatest variation of demand of it. The extent of the financial inclusion also differed among the various households with regards to socio-economic and cultural factors. The monopolistic financial service provider of the Island limits the quality of services offered to the Island households. The financial inclusion index is relatively higher in the households of government employees when compared with fisherman. But in terms of access to financial services like net banking, share trading, access to unified payment services reveals no variations.

Applications and Improvement: The methodology adopted in this study can be applied to any measure the financial inclusion across any households of any regions by altering the regional specific independent variables.


Keywords

Index of Household Financial Inclusion (IHFI).
User
Notifications

  • Finance for the poor: micro finance development strategy. Asian Development Bank. 2000; 1-52.

  • T. Beck, A. Demirguc-Kunt, P. Honahan. Access to financial services: measurement, impact, and policies .The World Bank Research Observer Advance Access. Oxford University Press. 2009; 24(1), 119-145.

  • T. Beck, A. Demirguc-Kunt, R. Levine. Finance, inequality and poverty: cross-country evidence. World Bank Policy Research. 2004; 1-47.

  • T. Beck, A. Demirguc-Kunt, M. Peria, S. Maria. Reaching out: access to and use of banking services across countries. World Bank Policy Research. 2005.

  • M. Yunus. Banker to the poor: micro-lending and the battle against world poverty. Business Economics. Public Affairs, New York. 1998; 1-285.

  • I. Kathryn, H. Barry. Building inclusive financial sectors for development. Economic and Social Affairs, United Nations. 2006; 1-21.

  • Banking the poor: measuring banking access in 54 economies. World Bank, Washington DC. 2009; 1-108.

  • M. Sarma. Index of Financial Inclusion. ICRIER. 2008; 1-15.

  • Handbook on constructing composite indicators: methodology and user guide. Oecd. 2008; 1-162.

  • N. Mehrotra, V. Puhazhendhi, G. Nair, G.B.B. Sahoo. Financial inclusion-An overview, DEAR, NABARD, Occasional Paper No. 48. 2009; 1-24.

  • A hundred small steps: report of the committee on financial sector reforms. Planning Commission Government of India. Chairman Raghuram G Rajan, New Delhi. 2009; 1-15.

  • N. Abhay. Report of the committee on credit related issues under SGSY. Government of India. Ministry of Rural Development, New Delhi. 2009.

  • Report of the committee on financial Inclusion. Government of India. New Delhi. 2008; 1-178.

  • P. Honohan. Cross country variation in household access to financial services. World Bank Conference on Access to Finance. 2007; 1-39.

  • Finance for all? Policies and pitfalls in expanding access. World Bank Policy Research Paper, World Bank. Washington DC. 2008.


Abstract Views: 234

PDF Views: 148




  • Index of Household Financial Inclusion (IHFI):An Analysis of Kadmat Island of Lakshadweep

Abstract Views: 234  |  PDF Views: 148

Authors

R. Pazhanisamy
Post Graduate Department of Economics, Calicut University Center, Kadmat, Lakshadweep, India

Abstract


Background/Objectives: The purpose of this present study is to introduce the financial inclusion index at the household level and compare the inclusiveness of the Kadmat Island of Lakshadweep.

Methods/Statistical Analysis: Based on the primary data collected from 100 households a separate financial inclusion index was composed in two dimensions and incorporated into a single index using the scoring and weighted average method. This unique index can be used to compare the inclusiveness of the financial sector across the households of any Island economy.

Findings: The entire households attained maximum financial inclusions in terms of provision of the financial services while there is greatest variation of demand of it. The extent of the financial inclusion also differed among the various households with regards to socio-economic and cultural factors. The monopolistic financial service provider of the Island limits the quality of services offered to the Island households. The financial inclusion index is relatively higher in the households of government employees when compared with fisherman. But in terms of access to financial services like net banking, share trading, access to unified payment services reveals no variations.

Applications and Improvement: The methodology adopted in this study can be applied to any measure the financial inclusion across any households of any regions by altering the regional specific independent variables.


Keywords


Index of Household Financial Inclusion (IHFI).

References