Challenges to Financial Inclusion in India: The Case of Andhra Pradesh

Economic & Political Weekly, Vol. 48, No. 7, February 16, 2013

7 Pages Posted: 16 Aug 2013

Date Written: February 16, 2013

Abstract

Focusing on the institutional challenges to financial inclusion in Andhra Pradesh, this paper argues that it is the inability of formal financial institutions to meet the specific needs of the poor that has enabled informal service providers to fill the vacuum. Without a paradigm shift, especially on the part of banks, financial inclusion is bound to fall short of expectations. It proposes that the banking sector should look at efforts to expand inclusion not as a capital cost or as a charitable expense, but as a long-term investment in the future. The soundness of such an investment is borne out in the success of individual business correspondents in some districts of the state.

Keywords: financial inclusion, Andhra Pradesh

JEL Classification: H50

Suggested Citation

Singavarapu, Ananth and Oncu, T. Sabri, Challenges to Financial Inclusion in India: The Case of Andhra Pradesh (February 16, 2013). Economic & Political Weekly, Vol. 48, No. 7, February 16, 2013. Available at SSRN: https://ssrn.com/abstract=2310759

Ananth Singavarapu (Contact Author)

Independent ( email )

No Address Available

T. Sabri Oncu

SoS Economics ( email )

Cengelkoy Maslagi Sokak
No 10
Istanbul, 34680
Turkey
+90 538 378 5722 (Phone)

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