2. Review of Literature
A Government Committee on financial inclusion, headed by C Rangarajan defines financial inclusion as
the process of ensuring access to financial services and timely and adequate credit where needed by
vulnerable groups such as the weaker sections and low income groups at an affordable cost.
Muhammad Yunus the 2006 Nobel laureate, who originated the idea of eradicating poverty thirty years
ago through his novel idea of banking the unbanked. Yunus is quoted stating that “…things are going wrong
not because of market failures. The problem is much deeper than that. The mainstream free-market theory
suffers from a conceptualisation failure, a failure to capture the essence of what it is to be human.”
3. Research Methodology
Research Design
• The study on “Financial Inclusion in India” has been undertaken to throw a light on the concept of Financial
Inclusion as it plays a vital role in India being a developed economy.
• The study analyse various initiatives qualitatively and quantitatively taken by the Government with the help of
Reserve Bank of India along with Union Bank of India as its ally..
• Secondary data in the form of bank documents were analysed as to find out incidence of Financial Inclusion till date
along with Primary data which was recorded direct from the people via mode of questionnaire.
4. Sample Selection
• Confined to Chandigarh-Panchkula-Mohali region as a result findings are limited to a small region only
• The respondents were selected, on the basis of their profession (low income earners) which
included, Rickshaw Pullers, Road side Artisans, Vegetable vendors, Contract Farmers, House hold maids.
Sampling Technique
The technique incorporated is that of convenience sampling (Non Probability Sampling). The field work
was conducted over a period of 3 weeks with total
100 respondents.
5. Data Collection
In order to collect the data both Primary and Secondary research was conducted.
• For Secondary Data various online websites, journals, research papers and committee reports were
referred in order to conduct proper analysis.
• Primary Data was collected via Schedules which were recorded via face - face interview
Data Analysis
Analysis of Secondary data was done by tabulating the data and calculating means and percentages across
the variables .The data was condensed into simpler form so as to facilitate quick and effective analysis. Expert
opinions were also sought
The Primary data in form of Survey was analysed with the help of software, Statistical Package for Social
Services 8 and Microsoft Excel 2010 were used which includes nominal data and ordinal data represented via
graphs ,trend lines, pie charts, radar.
6.
7. Income Level of Respondents
Medium Income Earners
Less than Medium Earners
Moderatley Low Income Earners
Low Income Earners
0%
10%
20%
30%
40%
8.
9. Reasons for not having a Bank account
12%
8%
Low Income
6%
Lack of Documents
66%
26%
Too expensive to maintain
Bank to far
8%
Not Important
80%
Lengthy Process
Tried but refused
10.
11.
12.
13. Importance of a Banking account
Advice on new schemes
Financial Literacy
Taking Loan
Saving small amount
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
14. Importance given by banks to
Advice on new schemes
Financial Literacy
Taking Loan
Saving small amount
0%
10%
20%
30%
40%
50%
60%
15. Suggestions for reduction in financial exclusion
1. Human Development
2. Access to Work – NREGA
4. Procedural/Documentation Changes
5. Proactive Role of Government
6. A Role for Rural Post Offices
7. Effective Use of IT Solutions
8. Adequate Publicity
9. Mobile Banking
10. Imbibing Technological know how
16. Conclusion
The future agenda of financial cooperatives in Increasing
Financial Inclusion in India can be depicted through ‘Nine R’.
• REEXAMINE
• REORIENT
• RECAPITALISE
• REVIEW
• RESTRUCTURE • REDEFINE
• REORGANISE • REENGINEER • REVAMP
