The document summarizes a study on the operational efficiency of financial inclusion in Puducherry, India. It discusses the methodology used, which involved collecting primary data through interviews with 500 no-frill bank account holders selected across 7 banks and 125 branches in Puducherry. Chi-square tests found significant relationships between household bank accounts and factors like gender, age, marital status, education, and occupation. The study concludes that banks need to reduce loan requirements, increase financial awareness programs, and leverage technology to better serve rural customers and promote inclusion.

1. Vol . IV : Issue. 17
ISSN:0975-9999
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SELP Journal of Social Science
ISSN : 0975-9999
Vol IV : Issue. 17
July - Septemper 2013
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 soc io-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.
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.
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,
tr anspar ent 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
SELP Journal of Social Science
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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ISSN:0975-9999
Thirdly, poor people, mostly, do not have any
identification/introduction, which is accepted
by banks to open an account (or) access other
financial ser vices. Four thly, lack of
understanding of financial services and the
oper ations to be car r ied 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.
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.
Objectives
1. To identity the financial inclusion on
purpose of opening account in Puducherry
Hypotheses
1. There is no significant relationship among
the r espondents of differ ent socio
economic profile to level of interest in
local financial services.
Period of study
The primary data required for the study
was collected dur ing the month of
December-2012 from no frill account holders
in the Puducherry.
2. There is no significant relationship among
the respondents belongs to different socioeconomic pr ofile to under banking
services.
Table 1: Gender Vs of Household Accounts
Ho: there is no relationship between
gender and household accounts of the
respondents and financial services related
Methodology
This study is an empirical one. The data
and other information required for the study
wer e collected fr om both pr imar y and
secondar y sour ces. Pr imar y data wer e
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
inter views and discussions with the
Gover nment officials and Indian Bank
Journals Office.
SELP Journal of Social Science
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
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3. Vol . IV : Issue. 17
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cent level of significance, t he 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 holder s in
Puducherry.
Table 2: Age Vs of Household Account
Source: Primary Data. (2012).
Ho: There is no relationship between age
and household account of the respondents and
financial service related
Household Accounts between Marital
Statuses
Source: Primary Data. (2012).
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.
Household Account between Ages
Table 4: Occupation Vs of Household
Accounts
Ho: there is no relationship between
occupation and household accounts of the
respondents with related factors.
T he calcu lated chi squar e value is
(161.441) gr eater 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.
SELP Journal of Social Science
Source: Primary Data. (2012).
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Household Account between Occupations
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.
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.
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 Puducher r y ther efor e, the null
hypothesis is (H01) rejected.
Table 5: Qualification Vs of Household
Accounts
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.
Ho: There is no relationship between
qualification and household accounts of the
respondents and financial service related
factors.
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 awar eness and
informing the public on use of M-banking
modes is required.
3. Bank should enhance their r efund
facilities concerns to if wrong transactions
made by customers by mistake or if any.
Source: Primary Data. (2012).
Household
Qualifications
Accounts
4. The banks may adopt a policy of assessing
the genuine r equir ements of socially
excluded group and cover all the needs of
small and petty borrowers instead of
providing a single loan only.
between
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
SELP Journal of Social Science
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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Financial Inclusion with an Indian
perspective”, Industrial Development
Bank of India, pp -1-10.
Conclusion
Puducher r y 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 mar keting 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 cr edit
facilities. Utilise the services of MFI, NGOs,
SHGs,
Bu siness
Facilita tor s
and
Correspondents, etc. to extend the financial
inclusion with reasonable cost.
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 Gr owth: Evidence fr om Afr ican
Countries”, International Monetary Fund,
pp 1-46.
Reference
1. Amol Agrawal. (2008). “The need for
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SELP Journal of Social Science
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