Consumer Awareness Towards Financial Inclusion in India: A Study on Mahanagar Co Op Bank Ltd, Mumbai

Consumer Awareness Towards Financial Inclusion in India: A Study on Mahanagar Co Op Bank Ltd, Mumbai

Sanal Nair (Samsidh Mount Litera Zee School, India) and Garima Gupta (Economic Research India Private Limited, India)
Copyright: © 2018 |Pages: 21
DOI: 10.4018/978-1-5225-4035-9.ch009

Abstract

This chapter focuses on researching the consumer awareness of people towards financial inclusion by conducting a study on Mahanagar Co Op Bank in Kharghar, Mumbai. The study adopted survey method to approach the respondents through a well-structured questionnaire. Stratum sampling method was used in order to select the sample respondents and collect data from those who are consumers of Mahanagar Co Op Bank Ltd, Kharghar Branch. A sample size of 150 consumers was taken. Following the data search, analysis was done by applying descriptive analytical tools like standard deviation and mean. The researcher used factor analysis, descriptive statistics, and one-way ANOVA in order to find the difference among the variables. SPSS software has been used for conducting the analytical tests. The results indicated an association between demographic variables and awareness and availing of financial inclusion services by the consumers of the bank. However, there was no association between demographic variables and some of the financial inclusion services.
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Literature Review

Definitions

Rajan (2007) broadly defined financial inclusion as a universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products.

Claessens (2006) has defined financial inclusion as the “availability of supply of financial services at reasonable costs, where reasonable quality and reasonable cost have to be defined relative to some objective standard, with costs reflecting all pecuniary and non-pecuniary costs.”

Issues and Challenges in Financial Inclusion

Sharma and Sachedeva (2014) studied financial inclusion in India highlighting its issues and challenges. The paper is based on secondary research and is an attempt to highlight the various initiatives taken by government authorities for eliminating financial exclusion in India. It also focuses on the extent to which the efforts have been successful in this mission. At last, the paper also proposes certain suggestions which can help to meet goal of financial inclusion more efficiently in the country.

Srinivasan (2007) considered that financial exclusion remains a major issue in the unorganized sector. Expansion of services in this area by banks will not be very easy because of the special situation and needs of the sector. The study suggests that though structural solutions are expensive and nevertheless must be pursued but banks should also think of designing a process response to the problem. This can include drawing on the experiences and practices of the traditional lenders to the unorganized sector.

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