Towards Financial Inclusion in India: Progress So Far, Issues and Challenges

Indian Journal of Economics and Development, Volume 12, No. 4, 641-652, October-December 2016

13 Pages Posted: 19 Nov 2017

See all articles by Susanta Kumar Sethy

Susanta Kumar Sethy

University of Hyderabad, School of Economics, Students

Date Written: 2016

Abstract

Financial Inclusion is one of the yardsticks to measure the growth of an economy as well as human well-being. Financial sector inclusion helps in eliminating poverty, reducing inequality and eliminating unequal access to opportunities etc. The major findings of this study shows that financial inclusion indicators such as: Geographic branch penetration (the number of Schedule Commercial 2 Banks branches per 1000 km demographic branch penetration (Number of Schedule Commercial Banks branches per 100000 population), and demographic ATM penetration (Number of Schedule Commercial Banks ATMs per 100000 population) has been increasing in different census period (1991, 2001 and 2011) of India. The performance of Urban Cooperative Banks in case of deposits and advances are also increasing from 2001 to 2011. It is also revealed that the number of accounts of Public Sector Banks, Private Banks, and Regional Rural Banks are more in rural area comparison to the urban area in 2015. Overall the result of this study justifying progress of financial inclusion and some recent initiatives taken by the government of India.

Keywords: Financial inclusion, banking sector, inclusive growth

JEL Classification: G20, G21, O43

Suggested Citation

Sethy, Susanta Kumar, Towards Financial Inclusion in India: Progress So Far, Issues and Challenges (2016). Indian Journal of Economics and Development, Volume 12, No. 4, 641-652, October-December 2016, Available at SSRN: https://ssrn.com/abstract=3070400

Susanta Kumar Sethy (Contact Author)

University of Hyderabad, School of Economics, Students ( email )

Hyderabad, TN TELANGANA 500046
India

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