ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Financial Inclusion

Financial Inclusion and Remittance Services

Using the Global Findex survey data, the various factors that may impact the use of banks and digital channels for remitting money have been explored. The cross-country analysis shows that while many people send/receive remittances in low-income countries, they are still transmitted through informal channels. In India, it is observed that the use of financial institutions/mobiles as remittance channels have improved from 2017 to 2021, especially for the lower-income people. The econometric analysis conducted for both conventional and digital modes of remittance transmission shows that while the banking infrastructure matters for formal remittance transmission, the poorer countries are able to address the problem of lack of adequate infrastructure by using the mobile platform.

Decoding the Union Budgets’ Financial Inclusion Agenda

Union Budget 2023–24 reaffi rms India’s commitment to promote financial inclusion measures and invest in digital infrastructure to support and achieve a financially inclusive economy. This article provides a comprehensive overview of fi nancial inclusion initiatives since 2005–06 and a way forward from the current budget.

Vulnerabilities among the Non-vulnerable Groups

Increasing fi nancial frauds and scams expose the vulnerabilities of the population subgroup which is included in the fi nancial system. An approach of considering educated and economically better-off sections not at the forefront while designing policies and programmes aimed at strengthening fi nancial literacy and improving fi nancial inclusion thus mandates a revisit.

Financial Inclusion in India: Achieving Quantity, but Waiting for Quality

The government of India and the Reserve Bank of India have taken different initiatives to promote financial inclusion in India. Pradhan Mantri Jan Dhan Yojana is instrumental in universalising financial inclusion initiatives. It has resulted in the tremendous growth of several bank accounts. Only the quantitative parameter speaks volumes about unfair financial inclusion. It can be transformed into fair financial inclusion with qualitative characteristics. This paper aims to analyse financial inclusion from the perspective of the activeness of accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, which is analysed with the help of Financial Inclusion Quotient (FIQ) and Account Activeness Quotient (AAQ).

Urban Cooperative Banks in Crisis?

The collapse of the Punjab and Maharashtra Cooperative Bank in 2019 raised questions about the dependability of the urban cooperative banking system in India. Started as a movement to address issues of rural credit, cooperative banks have witnessed a substantial increase in their scope of operations and have played a significant role in increasing liquidity in the hands of lower- and middle-class people. However, the misconduct of a few banks has maligned the entire urban cooperative banking system, leading to decreasing depositor trust. These instances cannot be allowed to demean the efforts put in by these banks in attaining the aims of financial inclusion, specifically with respect to the role played by them in the priority sector advances. This paper examines the problems faced by urban cooperative banks and analyses their future potential against the backdrop of their historical performance in financial inclusion. Also, it examines the various reform measures taken by the Reserve Bank of India in tandem with government efforts to keep the dependability and viability of the sector intact.

Outreach of Formal Banking Services and Financial Inclusion

This paper attempts to examine financial inclusiveness in major states of India. Using banking outreach services data from 1981 to 2018, we construct an index of financial inclusion. Although the outreach of formal banking services is well-dispersed across the states, there is a large variation among the states in terms of its access and usage. The evidence suggest that there exists a need to focus more on spreading financial literacy and create awareness about banking services in the poorer states to achieve a higher degree of financial inclusion.

An Evaluation of Factors Affecting the Usage of Financial Services in Punjab

This paper focuses on the usage of accounts to avail various financial services under the financial inclusion drive by the Government of India. It examines the factors affecting the use of financial services by 500 respondents from three districts of Punjab, namely Jalandhar, Gurdaspur, and Sangrur. It investigates financial services such as deposits, withdrawals, loans, remittances, and insurance. It applies logistic regression to understand the factors affecting the usage of these services. Education was the most significant of these factors, indicating the need for promoting financial literacy among the masses, especially those who are marginalised.

Faith-based Financial Exclusion

The United Kingdom was at the forefront of opening Islamic windows in its financial system with the objective of achieving financial inclusion of Muslims without compromising their value systems. India refused to think in that direction with its large Muslim population being excluded from financial deepening, which is a crucial pillar of poverty reduction. The consequent lower business potential of districts with a higher proportion of Muslim population has led to lower branch density and loan rates, affecting the general population as well. Jammu and Kashmir, in districts where the proportion of Muslims is higher, also reflects these trends observed in other states.

 

Making Digital Financial Inclusion a Reality

Technology has had a disruptive effect on the delivery of fi nancial services, and adoption of digital solutions could help accelerate fi nancial inclusion. This article creates a road map for digital fi nancial inclusion in India using the framework based on the eight high-level principles of G-20 nations. While evaluating the progress under each one of these principles, the article concludes with policy recommendations both on supply and demand sides to achieve the coveted digital fi nancial inclusion.

Financial Inclusion through Urban Cooperative Banks

This study gives insights into the financial inclusion and fintech performance of Telangana urban cooperative banks, based on a primary survey carried out among UCB officials. More than 60% of the UCBs are found to cater to slum dwellers and micro, small and medium enterprises. But a clear gender gap is evident in terms of account ownership and access to credit.