This document summarizes a study on the operational efficiency of financial inclusion in Puducherry, India. The study used a sample of 500 no-frill bank account holders to analyze the relationship between various socio-economic factors and household bank account usage. Chi-square tests found significant relationships between household accounts and factors like gender, age, marital status, occupation, and education. The study concludes that expanding access to banking services in rural areas can promote financial inclusion, but banks need strategies like simplifying loan procedures, increasing customer awareness, and leveraging technology and local partners. Overall, the document analyzes how various demographic characteristics relate to bank account usage among low-income populations in Puducherry.

1. SELP Journal of Social Science July -September 2013
Vol . IV : Issue. 17 ISSN:0975-9999
84
OPERATIONAL EFFICIENCY OF FINANCIAL INCLUSION IN PUDUCHERRY
V. Ganeshkumar,
Ph. D Full Time Research Scholars
Dr. C. Paramasivan,
Assistant Professor & Research Supervisor
PG & Research Department of Commerce, Periyar E. V. R. College, Trichy– 23, Tamil Nadu
ABSTRACT
Every man needs certain amount of money to meet their requirements and in some cases; men
need money to meet his basic needs life food, shelter, cloth etc. This is the basic concept of the
human begins to earn up to the maximum level and save up to sufficient level. In this regards
banking industries performed well and concentrated in all the walk of human beings. In India,
banking sector have an old age concept and involve long evolutionally history since 1850’s. Now
it has diversified into commercial banks, development banks, investment banks etc. Commercial
banks are well known institutions which are closely associated with the socio-economic
development of the nation. In this regard, Financial Inclusion play a key role in the field of rural
development and how it can be implemented effectively through Indian Bank in the selected district
is study in this research. This study focus on operational efficiency of financial inclusion in
Puducherry
Key words: Inclusive growth, Financial inclusion, Borrowers, Banking services.
Introduction
Financial inclusion is an innovative
concept which makes alternative techniques
to promote the banking habits of the rural
people because, India is considered as largest
rural people consist in the world. Financial
inclusion is aimed at providing banking and
financial services to all people in a fair,
transparent and equitable manner at
affordable cost. Households with low income
often lack access to bank account and have
to spend time and money for multiple visits
to avail the banking services, be it opening a
savings bank account or availing a loan. These
families find it more difficult to save and to
plan financially for the future. Thus, the
unbaked public is largely cut off from the
Banking products/services. It is the endeavor
of the Bank to provide the basic banking
facility of SB a/c’s to all the unbanked.
Statement of the Problem
Social & Economic position, low-income
people normally do not feel the need to bank
as the transaction carried out by them is
mostly in cash that too with low amount.
Secondly, many times people do not want to
disclose the information which would be
required for accessing any financial service.
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SELP Journal of Social Science
ISSN : 0975-9999
Vol IV : Issue. 17
July - Septemper 2013

2. SELP Journal of Social Science July -September 2013
Vol . IV : Issue. 17 ISSN:0975-9999
85
Thirdly, poor people, mostly, do not have any
identification/introduction, which is accepted
by banks to open an account (or) access other
financial services. Fourthly, lack of
understanding of financial services and the
operations to be carried out is also a
hindrance. Fifthly, poor people do not have
much absorptive capacity for all the financial
services. Need for different financial services.
Finally, the spread of customers is very thin
which makes the operation of reaching out to
them a costly affair.
Objectives
1. To identity the financial inclusion on
purpose of opening account in Puducherry
Hypotheses
1. There is no significant relationship among
the respondents of different socio
economic profile to level of interest in
local financial services.
2. There is no significant relationship among
the respondents belongs to different socio-
economic profile to under banking
services.
Methodology
This study is an empirical one. The data
and other information required for the study
were collected from both primary and
secondary sources. Primary data were
collected from the no frill account holders
directly, using a structured interview schedule
and the secondary data were collected from
various sources of books, journal, articles,
magazines and related web sites information
from retailers Other information pertinent to
the study has been collected by means of
interviews and discussions with the
Government officials and Indian Bank
Journals Office.
Sampling Design
There are 23 Public Sector Banks, 13
Private Sector Banks, 1 Co-operative Banks,
and 1 Regional Rural Banks in operation in
Puducherry as on March 2012. In order to
collect primary data for the purpose of the
study, multi-stage sampling technique is
adapted. At the first stage, 7 banks which
outnumber in number of branches were
selected out of the 38 banks. In the second
stage, 5 per cent of the branches i.e 125
branches were selected out of the 7 selected
banks. In the final stages, from each of the
branch 80 no frill accounts holders were
selected on the purposive basis. Therefore,
the sample size consists of 500 respondents,
of the following table shows the sampling
distribution of the present study.
Period of study
The primary data required for the study
was collected during the month of
December-2012 from no frill account holders
in the Puducherry.
Table 1: Gender Vs of HouseholdAccounts
Ho: there is no relationship between
gender and household accounts of the
respondents and financial services related
Source: Primary Data. (2012).
Household Account between Genders
The calculated chi square value is (71.616)
greater than the table value (11.341) at 1 per

3. SELP Journal of Social Science July -September 2013
Vol . IV : Issue. 17 ISSN:0975-9999
86
cent level of significance, the test is
signification; Therefore, there is significant
relationship between different household
accounts which gender used in Puducherry.
Therefore, the null hypothesis is (Ho1)
rejected. There, the male respondents are
highly in number of house holders in
Puducherry.
Table 2: Age Vs of Household Account
Ho: There is no relationship between age
and household account of the respondents and
financial service related
Source: Primary Data. (2012).
Household Account between Ages
The calculated chi square value is
(161.441) greater than the table value
(21.666) at 1 per cent level of significance,
therefore, there is significance relationship
between different household account with age
used in Puducherry. Therefore, the null
hypothesis is (Ho1) rejected. Therefore, the
41 above respondents are highly in number
of house holders in Puducherry.
Table 3: Marital Status Vs of Household
Accounts
Ho: there is no relationship between marital
status and household accounts of the respondents
and financial services related factors.
Source: Primary Data. (2012).
Household Accounts between Marital
Statuses
The calculated chi square value is (33.859)
greater than the table value (21. 666) at 1
per cent level of significance, Further, there
is significant relationship between different
marital status with household accounts used
in Puducherry. Therefore, the null hypothesis
is (Ho1) rejected. Therefore, the married
respondents are highly in number of house
holders in Puducherry.
Table 4: Occupation Vs of Household
Accounts
Ho: there is no relationship between
occupation and household accounts of the
respondents with related factors.
Source: Primary Data. (2012).

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Household Account between Occupations
The calculated chi square value is (99.942)
greater than the table value (21.666) at 1 per
cent level of significance, Therefore, there is
significance relationship between different
occupation with household accounts used in
Puducherry. Therefore, the null hypothesis is
(Ho1) rejected. Therefore, the occupation
respondents are highly in number of house
holders in Puducherry.
Table 5: Qualification Vs of Household
Accounts
Ho: There is no relationship between
qualification and household accounts of the
respondents and financial service related
factors.
Source: Primary Data. (2012).
Household Accounts between
Qualifications
The calculated chi square value is (139.21)
greater than the table value (30.578) at 1per
cent level of significance, Therefore, there is
significant relationship between different
qualification with household accounts used
in Puducherry. Therefore, the null hypothesis
is (Ho1) rejected. Therefore, the education
respondents are highly in number of house
holders in Puducherry.
Findings
1. A significant relationship is found among
the no of account your household of the
respondents of gender, age, marital status,
education, occupation, in financial service
in Puducherry therefore, the null
hypothesis is (H01) rejected.
2. A significant relationship is calculated
among the no of accounts your household
of the respondents of annual income, in
financial service in Puducherry therefore,
the null hypothesis is (H02) accepted.
Suggestions
1. Banks will have to take steps to reduce
the legal procedure and insistence of
collateral while lending to increase the
number of customers.
2. Building customer awareness and
informing the public on use of M-banking
modes is required.
3. Bank should enhance their refund
facilities concerns to if wrong transactions
made by customers by mistake or if any.
4. The banks may adopt a policy of assessing
the genuine requirements of socially
excluded group and cover all the needs of
small and petty borrowers instead of
providing a single loan only.
5. Banks should leverage technology to the
maximum to introduce the new account
holders to use and transact the accounts
more and save more.

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Conclusion
Puducherry is successful financial
inclusion, the banks need to pay attention on
the following: The rural branches of the banks
may be equipped with motivated and trained
staff having some marketing skill and
knowledge on appraisal of small loan After
opening ‘no frills’ account, proper measures
may be made to organise them into groups for
inculcating the habit of thrift which will
ultimately enable them to avail credit
facilities. Utilise the services of MFI, NGOs,
SHGs, Business Facilitators and
Correspondents, etc. to extend the financial
inclusion with reasonable cost.
Reference
1. Amol Agrawal. (2008). “The need for
Financial Inclusion with an Indian
perspective”, Industrial Development
Bank of India, pp -1-10.
2. Goodwin. D Adelman. L Middleton. S and
Ashworth. K. (2000). “Debt, Money
Management and Access to Financial
Services: Evidence from the 1999 PSE
Survey of Britain”, Entre for Research in
social policy, Lough borough University.
3. La Francophonie. (2011). “The G20 and
Financial Inclusion”, Commonwealth
Secretariat, pp 1-30.
4. Mihasonirina Andrianaivo and Kangni
Kpodar. (2011). “ICT, Financial Inclusion,
and Growth: Evidence from African
Countries”, International Monetary Fund,
pp 1-46.
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