Financial Inclusion of Vulnerable Sections- North Bengaluru, India PPT.pptx

Finance

1. Financial inclusion For Financially vulnerable Rural population Ms. Pooja P. Easwar Department of Commerce Don Bosco College Bengaluru .

2. Chapter-1: Introduction 1.1. Background India is becoming a country of opportunities, and it has already become a paradise for investors from overseas. Initiatives like Make in India, Digital India, and e-Rupee are gaining momentum, but these are not enough to cope with GDP growth, a good financial system, and the economic development of our country. The foundation for sustainable growth in any country is creating an inclusive environment for all sections of society, both financially and economically. Financial Inclusion plays a major role in making the country financially inclusive and leads to economic development.

3. Chapter-1: Introduction 1.2. Financial Inclusion Financial inclusion serves as a basis for making all financial services and products accessible to all. It helps broaden the resource base of the financial system by instilling a culture of savings habits, investing, and insurance in vulnerable groups as well as other sections of society. In order to keep track of financial inclusion in India, the RBI introduced the Financial Inclusion Index (FII). Compared to FII in 2021, with a 53.9 level, in 2022 FII has jumped to a 56.4 level and in 2023 to 60.1 which shows progress. But still, people can be found without bank accounts and with poor financial skills in rural areas.

4. Chapter-1: Introduction 1.3. Statement of Problem   A large portion of the population is still untapped and does not fall under the framework of the financial system in rural areas. This poses a very big threat to our financial system.

5. Chapter-1: Introduction 1.4. Objectives of the study To examine the success, reach and usage of accounts opened under different schemes. To find out the effectiveness of awareness programmes in financial inclusion in rural population. To study how different institutional arrangements are improving access to credit To suggest the strategic measures and effective model to be adopted to include the rural population in financial inclusion framework.

6. Chapter-1: Introduction 1.5 . Significance of the study The study helps to assess the role of schemes put forward by GOI in financial inclusion in rural areas. The study is significant in analysing the various challenges faced by the rural population in maintaining their bank accounts.

7. Chapter-1: Introduction Limitations of the study The study is limited to rural areas near Bengaluru. The study is focussed only on one of the vulnerable sections- rural population, other section are not considered.

8. Chapter-1: Introduction 1.7. Definitions Financial Inclusion Financial inclusion refers to the mechanism of making the population of a country inclusive of the financial system by inculcating banking habits, investing, post-office savings, and insurance to improve the financial wealth of the country and achieve sustainable economic growth. Rural population The population who lives in the rural areas, where most of them are dependent on agriculture and are financially vulnerable termed as rural population.

9. Chapter-2: Review of Literature Manohar V. Serrao, Dr. A. H. Sequeira, and Dr. K.V.M. Varambally, in their research paper, “Impact of Financial Inclusion on the Socio-Economic Status of Rural and Urban Households of Vulnerable Sections in Karnataka”, examine the level of changes in the socio-economic conditions that the households of vulnerable sections have experienced by being financially included in the system. The study concluded with a model for inclusive growth of vulnerable classes of society by having financial inclusion and assessed the positive association of various variables like level of material changes, cognitive changes, level of perception changes, and relational changes by availing of financial services.

10. Chapter-2: Review of Literature Chuka Ifediora , Kenechukwu Onochie Offor , Eze Festus Eze , Samuel Manyo Takon , Godwin Imo Ibe , Josaphat U. J. Onwumere In their research work, “Financial inclusion and its impact on economic growth: empirical evidence from sub-Saharan Africa" the Department of Economics (2022) studied 22 sub-Saharan African countries and, using GMM (Generalised Method of Moments) two-step regression method analysis, interpreted that availability and penetration dimensions of financial inclusion had a positive impact on economic growth, misallocation of financial resources should be resolved, and fintech should be encouraged with high network coverage of digital broadband infrastructure for improving economic growth with effective financial inclusion.

11. Chapter-2: Review of Literature Peterson K. Ozili (2020), “Financial Inclusion Research Around the World: A Review”, opined that there are various forms of financial inclusion that should be scrutinised, like optimal financial inclusion, extreme financial inclusion, transmission of systematic risk to the formal financial sector, and how pro-cyclical financial inclusion and exclusion are in countries. The researcher also identified various areas for further research in financial inclusion, like the type of regulations to promote financial inclusion, the influence of national politics on the financial inclusion of countries, and the influence of financial inclusion on macroeconomic stability.

12. Chapter-2: Review of Literature Charan Singh and Gopal Naik (2017), “Financial Inclusion in India: A Case Study of Gubbi”, have done a detailed study on farmers and non-farmers in Gubbi a Tumkur Taluk in Karnataka attempting to examine the impact of measures by GOI, RBI and NABARD in opening of accounts, availing of loans and factors hindering financial inclusion rural areas. The findings suggests that distance from banks, long term relationship with local money lenders and lack of initiatives for awareness are the major reasons for less financial inclusion rates in that area. Bankers were also interviewed in this regard and they opined that lack of financial literacy is the major indicator.

13. Chapter-2: Review of Literature In order to promote financial inclusion, Mukherjee and Chakraborty (2012) investigated the function and effectiveness of commercial banks in the state of Jharkhand in relation to their ability and role of organisations such as self-help groups (SHGs), regional rural banks (RRBs), and non-banking financial companies (NBFCs).The analysis's findings demonstrated that banks were unable to accomplish the intended goals, and the study recommended that each bank submit more regular reports to the RBI detailing its progress towards financial inclusion.

14. Chapter-2: Review of Literature 2.1. Research Gap  In 2021, the RBI set a national strategy for financial inclusion with universal access to banking facilities, providing various financial services, providing access to livelihood and skill development, and financial literacy and education. But from the literature, we can see that there is still a long way to go to achieve these strategic objectives, especially when confined to Bengaluru. From the literature, the research consists of India and other countries, but there are very few studies attempting to carry it over in Bengaluru, especially in North Bengaluru, where rural vulnerable classes are more prevalent.

15. Chapter-3: Research Methodology Financial Inclusion Level of Financial Literacy Demographic factors Availability of suitable schemes in financial Institutions Accessibilty of financial services 3.1. Research Design The conceptual framework of financial inclusion with other variables have been depicted below

16. Hypotheses development H1: There is a significant relationship between schemes put forward by GOI and enrolment of accounts in rural population. H0: There is no significant relationship between schemes put forward by GOI and enrolment of accounts in rural population. H2: There is a significant association between awareness programmes conducted and active operation of bank accounts in rural population. H2: There is no significant association between awareness programmes conducted and active operation of bank accounts in rural population. H3: There is a significant disruption in rural credit and savings due to influence of money lenders and rural chit funds. HO: There is no significant disruption in rural credit and savings due to influence of money lenders and rural chit funds.

17. Chapter-3: Research Methodology 3.2. Sampling Quantitative analysis - For this purpose, cluster sampling is used. Qualitative analysis - For this purpose, convenience sampling is used.

18. Chapter-3: Research Methodology 3.3 Data Collection For the study, primary data is collected for cluster sampling for quantitative analysis using questionnaire by using Likert scale and for convenience sampling, direct interviews will be conducted. In addition to this, secondary data sources like journals, articles and official websites are also used in the data collection. 3.4. Data Analysis The data will be analysed by using SPSS software. Test of reliability and test of validity will be conducted. Various techniques for association and relationship like Chi- square test for checking association of variables, ANOVA and Structural Equation Modelling also will be used .

19. Chapter- 4 References Manohar V. Serrao, Dr. A. H. Sequeira, and Dr. K.V.M. Varambally, “Impact of Financial Inclusion on the Socio-Economic Status of Rural and Urban Households of Vulnerable Sections in Karnataka”   Sanderson Abel, Learnmore Mutandwa , and Pierre Le Roux (2018), “A Review of Determinants of Financial Inclusion” Peterson K. Ozili (2020), “Financial Inclusion Research Around the World: A Review”, (PDF) Financial Inclusion Research Around the World: A Review (researchgate.net) https://www.iimb.ac.in/sites/default/files/2018-07/WP_No._474.pdf https://www.researchgate.net/publication/353117742_THE_IMPACT_OF_FINANCIAL_INCLUSION_ON_GROWTH_OF_THE_BANK_IN_INDIA https://vikaspedia.in/social-welfare/financial-inclusion/financial-inclusion-in-india https://data.imf.org/regular.aspx?key=61063966   https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20502