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Financial Inclusion among Rural Households of Teok Revenue Circle with
special reference to Hanchara Bilung Gaon:An Empirical Survey
Principal,C.K.B.College,Teok,
with the Seed Money during the Plan Period 2020-21
The study on financial inclusion is
extremely momentous for the society because outcomes of financial exclusion
have quite a negative impact on the economic development of a country. People
who are unable to obtain services from mainstream financial service providers
are thus regarded as the financially excluded, not only because there are no
branches of the bank or other financial institution in their community, but
also they are excluded or unable to use services offered bydifferent
financial institutions.
The
findings of the present work significantly leads to address the present
situation prevailing in the area under study and thereby pave the way to take
corrective actions.
The objectives of the study are:
● To study the status of financial
inclusion among sample households
● To examine the awareness level of
financial products and services among the sample households.
The paper also aims to analyze
some of the past research evidence on the effects associated with the
introduction of Pradhan Mantri Jan Dhan Yojna
(PMJDY) and seeks to evaluate the state of introduction
of similar financial inclusion process in Indian.
The study based on both primary and
secondary data. The primary data have been collected through well designed questionnaire
format.96 households have been selected as sample for this study as the
universe is 380 representing 25% sample size of the population. The secondary data have been collected through
books, reputed journals, government publications in both print and electronic
media and websites etc.
As indicated in the objective the
purpose of the study is to provide the status of financial inclusion and to examine the
awareness level of financial products and services among the sample
households, accordingly simple average method
is used to testify majority of the questionnaire results keeping in mind the
structure of the questions. Moreover, chi-square test as a powerful non
parametric statistical tool is used to testify the views of the respondents in
order to draw inferences on the following hypothesis framed.
Type
of Bank account is not associated with the level of income.
The present work analyses a series of
systematically developed statement of assertions in the survey questionnaire.
The main purpose of which was to investigate whether there is any significant
gap between financial inclusion and socio economic development of the poorer
section of the society. The results so provided by the study are given in the
following which should be properly addressed to reduce the gap.
1)
It can be
observed from the table that only 6% of the total respondents have no formal
education. 15% belong to the education category of 5th std-10th
standard, 16% of them are educated up to 5th standard, 36% of them
belong to the education category of 10th standard - Degree and 27% of them
belong to the education category of Degree – PG level.
2)
34% of the
total respondents are daily wage earners, 21% have private job and 15% of
them do not have any job. Majority of this category of people includes
students and house wives. Government employees constitute 30% of the total
respondents.
3)
17% of the total respondents have
a monthly income of below Rs.5000. 29% of them have a monthly income between
Rs. 5000-10000 and 54% of them have a monthly income of Above Rs.10000.
4)
It can be
noted from the table that 2% of the total respondents records only incomes,
6% of them records their daily expenditure, 22% of them records both.
5)
It is
observed that 100% of the total respondents are financially included.
6)
100% of the total respondents are
using Banking facilities, 79% are associating with Self Help Groups, 58% of
them have Insurance coverage, 6% of them are using non banking financial
services, 40% of them have post office savings, 5% of them are associating
with any of the pension funds and 8% of them are associating with financial
markets and 8% are using the Mutual
Fund schemes.
7)
It is also
observed from the data analysis that the main reason for opening a bank
account is. The second important reason is for getting any subsidies from
Government followed by for receiving the remuneration of NREG Programme. ‘For
receiving scholarships’ is getting no importance at all.
8)
86.61 percent
households have a savings bank account. Followed by 9.82 percent households
having recurring deposit and rest of 3.57 percent households are having time
deposit or fixed deposit.
9)
The study
shows that though people are visiting financial institutions or have bank
account for their financial needs but majority of households reported that
their uses of financial services was not fixed i.e. 50 percent. 24%
households are using once in a month, 18 percent households are using once in
three month and only 8 percent are using once in six months.
10)
Out of 96
households 41 households i.e. 43 percent got credit from Bandhan bank.
Followed by 32 percent households taking credit from Gramin Vikash Bank.
Village lender also plays an important role to provide credit to rural
households in the study area. In the study area, out of 96 households 5
households got credit from the village lenders. Though they provide credit
facility they charge high rate of interest. Rest of the households got credit
from different institution or sources like SBI, UCO bank and other banks and
source as observed from the data.
11)
Almost 96
percent of the households used ATM, be it cash withdrawal or for checking of
balance amount in the account. After ATM usage, it has found that 87
households in the study area are availing personal loan followed by 68.28
percent households having a green card. Mobile banking, which proves to be an
easy tool unfortunately used by very less number of households (41.96
percent). In the study area, 14.28 percent households have a car loan while
6.25 percent households have an educational loan. It is disappointing that
very less number of households use a cheque book, credit card and only 3
households use internet banking.
12)
The table
value of chi square for 3 degrees of freedom at 5 % level of significance is
7.81. The calculated value of chi square is less than the tabulated value.
Therefore the Null hypothesis is accepted. It implies that the type of bank
account is not associated with the income level. it means income level of a
household and type of bank account is independent. Income level of a
household is not significantly impacts on type of bank account.
The development of rural areas is
very important for all round development of the economy. Therefore financial
inclusion of the rural masses bears greater importance from the development
perspective point of view. The initiatives of the government should aim to
include the underprivileged section of the society to bring them to
mainstream banking sector. The awareness about the digital banking tools is
also very important. People should be encouraged to get enrolled under
banking system by at least having a bank account per household. ATMs in the
rural areas, green card, mobile banking and internet banking have ability to
engage the households into the banking sector. They should not only have
access to the banking services but also should actively utilize those
services that are designed to do banking with an ease.
By the study of the various aspects of banking in
the study area, it is quite evident that the people should be made aware of
how the use of the various banking facilities can make banking easy for them
and also help in development. Hence, instead of confining to the schemes
recommended by the official committees, banks may adopt some innovative
schemes for making financial inclusion more meaningful as well as successful.
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