Effectiveness of Financial Inclusion Initiatives: A Case Study of Rajasthan State

Effectiveness of Financial Inclusion Initiatives: A Case Study of Rajasthan State

K. Sanal Nair (Samsidh Mount Litera Zee School, India) and Saumya Jain (Cognus Technology, India)
Copyright: © 2018 |Pages: 18
DOI: 10.4018/978-1-5225-4035-9.ch004


An inclusive financial system has been the major agenda of the Indian government over the past few years and several steps have been taken in this direction. The main purpose of the study is to assess the effectiveness of financial inclusion initiatives taken by Rajasthan government. A questionnaire was drafted and was sent to people from weaker section of the society who have been the beneficiaries of the financial inclusion initiative of the government. Research methodology adopted for the study includes descriptive statistics and one-way ANOVA was used to test the association/non-association between the variables. The study concluded towards lack of awareness and usage of financial inclusion initiatives, especially internet, mobile banking, and credit card. In terms of experience with financial services, respondents were positive towards interest on loans and help received by banking staff with respect to documentation and identification norms as well as branch timings. However, distance from the bank and the availability of ATM was an issue for them.
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Literature Review

Jain (2016) made an attempt to analyze the awareness level of various financial services available for house hold workers in Jaipur city. It has been concluded that dream of complete financial inclusion cannot be fulfilled until there is a launch of mass awareness drive for educating the masses about availability and usage of these services. Bank is further required to introduce need based product offerings so that unbanked people can be financially included.

Dixit and Ghosh (2013) concluded towards a huge variation in the state of financial inclusion for different states in India. Kerala, Maharashtra and Karnataka have shown higher inclusion rate while Gujarat, Manipur, Rajasthan. Assam, Bihar, UP and MP are poor on the grounds of financial inclusion. The issue is in terms of geographical and demographic reach, followed by lack of financial literacy and awareness level about using the financial products.

Neha Sharma (2017) has revealed that financial inclusion in Rajasthan state is 75.3 percent and the state has a poverty rate of 64.2 percent. Hence as per the low, medium and high classification of extent of financial exclusion in Indian states, Rajasthan lies in low index of financial inclusion.

Majundar (2013) carried out a study on Hooghly district of West Bengal so as to conclude that scheme related to financial inclusion has not been successful for scheduled castes, scheduled tribes, Other Backward Classes and the ones who are less educated. It was further revealed that this scheme is ill targeted as the benefits are reaped by higher sections of society.

Gwalani (2014) has concluded that efforts have been taken by the Indian government for financial inclusion but seeing the nature of diversified nature of the country the need is to focus on basics and customize models as per need so as to accelerate the process of economic growth.

Kumar (2013) has concluded that there is a presence of positive and valuable change in financial inclusion on account of technological up gradations. He further recommended towards the need to have adequate provisions in place so that poor people do not drift away from banking.

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