Indian Journal of Economics and Development

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Analysis of Key Determinants Affecting Financial Inclusion


Affiliations
1 Department of Economics, Kurukshetra University, Kurukshetra, Haryana, India
 

Objective:The present study isto find the scope of financial inclusion in the District Hisar of Haryana (India) and to estimate the effect of socio-economic factors on financial inclusion.

Methods: The primary data has been collected through structured questionnaire on the basis of stratified/multi stage random sampling method and Binary Logit Model was used for analysis of data.

Findings: This study has described status of financial inclusion of district Hisar thorough three parameters i.e bank, Post-office and self-help group taking four variables such as bank account, savings in banks, account in post offices and member of self- help groups.The survey has shown that 66 per cent people in Hisar block have savings in banks whereas 56% people in Hansi block of district Hisar of state Haryana. The independent variable, Income has positive and significant effect on dependent variable savings in banks.

Application: It has been examined in the present study that there was lack of financial literacy among people, especially, among rural people. People were not aware about interest rates on different types of financial services like savings in banks, loans and other benefits from insurance policies. Therefore, Reserve Bank of India and National Agriculture Bank for Rural Development should take necessary steps to literate the people regarding financial services beneficial to them by organizing special campaigns. Also, the study has major application in constructing the new policy framework by government as well as banks.


Keywords

Financial Inclusion, Poverty, Bank, Post Office, Self Help Groups.
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Abstract Views: 298

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  • Analysis of Key Determinants Affecting Financial Inclusion

Abstract Views: 298  |  PDF Views: 171

Authors

Poonam
Department of Economics, Kurukshetra University, Kurukshetra, Haryana, India
Archna Chaudhry
Department of Economics, Kurukshetra University, Kurukshetra, Haryana, India

Abstract


Objective:The present study isto find the scope of financial inclusion in the District Hisar of Haryana (India) and to estimate the effect of socio-economic factors on financial inclusion.

Methods: The primary data has been collected through structured questionnaire on the basis of stratified/multi stage random sampling method and Binary Logit Model was used for analysis of data.

Findings: This study has described status of financial inclusion of district Hisar thorough three parameters i.e bank, Post-office and self-help group taking four variables such as bank account, savings in banks, account in post offices and member of self- help groups.The survey has shown that 66 per cent people in Hisar block have savings in banks whereas 56% people in Hansi block of district Hisar of state Haryana. The independent variable, Income has positive and significant effect on dependent variable savings in banks.

Application: It has been examined in the present study that there was lack of financial literacy among people, especially, among rural people. People were not aware about interest rates on different types of financial services like savings in banks, loans and other benefits from insurance policies. Therefore, Reserve Bank of India and National Agriculture Bank for Rural Development should take necessary steps to literate the people regarding financial services beneficial to them by organizing special campaigns. Also, the study has major application in constructing the new policy framework by government as well as banks.


Keywords


Financial Inclusion, Poverty, Bank, Post Office, Self Help Groups.

References