Upload
vivek-kumar-singh
View
124
Download
8
Embed Size (px)
Citation preview
A study on financial inclusion in gannavaram mandal
k.Sumanth10102418
introduction
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of societyThe United Kingdom was one of the first countries to realize the importance of financial inclusion
The Reserve Bank of India (RBI) set up the Khan Commission in 2004 to look into financial inclusion and the recommendations of the commission were incorporated into the mid-term review of the policy (2005–06). In the report RBI exhorted the banks with a view of achieving greater financial inclusion to make available a basic "no-frills" banking account. In India, financial inclusion first featured in 2005, when it was introduced by K C Chakraborthy, the chairman of Indian Bank. Mangalam Village became the first village in India where all households were provided banking facilitiesFeatures:No-frills account, easy credit, use of regional languages, NGO/SHG, financial education
Research problems, objectives and Design
• Research problem:• Financial exclusion• Very low saving• Money lender are still dominant of rural finance • Research objective:• To identify cause of financial exclusion and low saving • To understand the factor that making people to barrow money from money lenders• Analyze essential financial service required by rural people • Research Design:• • A Research design is concerned with turning a research question into a testing project. The best
design depends on the research questions. Primary data is collected from 120 respondents of allapuram,buddavaram and tampalle villages of Ganavaram mandal and data is analyzed and interpreted through tabulation ,column chart and percentage.
Methodology
• Data collection: Structured questioner is used for collection of data. • Sample size: 120 random sampling. • Data analysis: data is analyzed through Tabulation, column chart and Percentages • 3.4 Data collection: • For this research, in order to achieve the objective, the data has been collected using both
primary and secondary source of data. The secondary data has helped in developing the background information, needed in order to build the report constructively and the reader to comprehend more thoroughly the survey outcome.
• Primary data has been collected through questionnaire. Direct survey method has been used to collect the data from the sample. The respondents are selected randomly by using random sampling method out of the population of the Ganavaram mandal villages. Questionnaires consist of close – ended question
Data analysis& interpretation
Table:1 Availability of bank
Options Respondents percentagesYes 120 100No 0 0total 120 100
Yes NO Total0
20
40
60
80
100
120
140
respondspercentages
100% of people are aware of availability of bank in there village.
Table:2 Type of bank
• Villages consists of public sector bank only. There are no co-operative or private sector banks available.
Options Responds percentages
Public sector 120 100
Co-operative bank 0 0
Private bank 0 0
total 120 100
public sector bank co-operative bank Private sector bank Total0
20
40
60
80
100
120
140
respondspercentage
Table:3 Do you have account in a Bank
Only 42.5% of people have account in bank and 57.5% does not have any account
Options Responds percentage
Yes 51 42.5
No 69 47.5
Total 120 100
Yes No Total0
20
40
60
80
100
120
140
Respondspercentages
Table:4 Reasons for not having bank account
Options Responds PercentageLack of financial knowledge 21 17.5Low income 24 20Illiteracy/language 7 5.833333Banking procedure 6 5Neutral 62 51.666667Total 120 100
020406080
100120140
respondspercentages
Table:5 Type of account
Only 28 of people have zero balance account which is initiated by financial inclusion program
Options Responds PercentageZero balance 34 28.3333333Saving account 17 14.1666667Current account 0 0Fixed account 0 0None 69 57.5Total 120 100
zero balance account
saving accounts
current account
fixed deposit account
None Total0
20
40
60
80
100
120
140
respondspercentage
Table:6 Documents required for opening account
Options Responds PercentageElectoral card 0 0Ration card 51 42.5Pan card 0 0License 0 0neutral 69 57.5Total 120 100
electoral card
ration card
pan card license neutral total0
20
40
60
80
100
120
140
respondspercentages
Table 7:Initial deposit
57.5% of people does not do any saving and remaining initial deposits are low
Options Responds Percentage0-100 36 30100-200 6 5200-300 1 0.833333>300 8 6.666667Neutral 69 57.5Total 120 100
0-100 100-200 200-300 >300 neutral total0
20
40
60
80
100
120
140
respondspercentages
Table:8 Approximate monthly savings
Options Responds PercentageLess than 500 44 36.6666667500-1000 2 1.66666671000-2000 5 4.1666667Above 2000 0 0Neutral 69 57.5Total 120 100
less than 500
500-1000
1000-2000
above 2000
neutral total0
20
40
60
80
100
120
140
respondspercentage
Table:9 Reasons for low savings
50% of don’t save because of low income, 19.16% of high expenses 30.83% for other reasons
Options Responds PercentageLow income 60 50High expenses 23 19.1666667Others 37 30.8333333Total 120 100
low income high expenses others total0
20
40
60
80
100
120
140
respondspercentages
Table:10 Any instructions in vernacular language
33.33% are positive about instructions provide in local language 66.66 are say they never find any instructions in local language
Options Responds Percentage
Yes 40 33.3333333
No 80 66.6666667
Total 120 100
yes no total0
20
40
60
80
100
120
140
respondspercentages
Table:11 Awareness of any banking services
Options Responds PercentageDeposit/withdrawing/passbook 91 75.8333333Cheque book 7 5.83333333Loans 66 55General/kisan credit card 24 20ATM card 46 38.3333333None 20 16.6666667Total 120 100
deposits/withdraw-ing/pass-book
cheque book
loans general/kisan
credit card
ATM card None total0
20
40
60
80
100
120
140
respondspercentages
Table:12 Reasons for bank visit
Options Responds Percentage
Depositing money 50 41.6666667
Withdrawing 1 0.83333333
Loan 40 33.3333333
Passbook 9 7.5
Neutral 20 16.6666667
Total 120 100
depositing money
withdraw
ing loan
passb
ook entire
Neutral
total
0
20
40
60
80
100
120
140
respondspercentages
Table:13 Availed loan form money lenders or Bank
Options Responds percentage
Money lender 69 57.5
Bank 25 20.8333333
None 26 21.6666667
Total 120 100
money lender bank none total0
20
40
60
80
100
120
140
respondspercentages
Table:14 Why not bank
Options Responds Percentage
Lengthy legal procedure 38 31.6666667
Language 4 3.33333333
Delayed credit 0 0
Other 52 43.3333333
Neutral 26 21.6666667
Total 120 100
lengthy lega
l proc
edure
language
delayed credit
others
neutral
total
020406080
100120140
respondspercentages
Table:15 Amount of loan barrowed
Options Responds Percentage0-10000 45 37.510000-20000 15 12.520000-30000 12 10>30000 22 18.3333333None 26 21.6666667Total 120 100
0-10000 10000-20000 20000-30000 >30000 none total0
20
40
60
80
100
120
140
respondspercentages
Table:16 Purpose of taking loan
Options Responds PercentageAgriculture 15 12.5Animal husbandry 2 1.6666667Marriage 10 8.3333333Medical 25 20.833333Neutral 26 16.666667Others 42 21.666667Total 120 100
agriculture animal husbandry
marriage medical neutral others total0
20
40
60
80
100
120
140
respondspercentages
Table:17 Did any SHG/NGO gave any advice regarding financial services
Majority of people(67.5) say that none came to educate them about financial services though they are some positive feedbacks which stands 32.5%.
Options Responds Percentage
Yes 39 32.5
No 81 67.5
Total 120 100
yes no total0
20
40
60
80
100
120
140
respondspercentages
Table:18 Does financial inclusion program meets your financial needs
68.% of responds did not receive any kind of financial supports and 31% are satisfied by the services .well thus shows that the program initiated by government and financial are not yet
meeting the need and they are not effectively functioning and reaching the needy.
Options Responds percentage
Yes 38 31.6666667
No 82 68.3333333
Total 120 100
yes No total0
20
40
60
80
100
120
140
respondspercentages
Findings/suggestions and limitations
• Average annual income of rural people lies between 50000-60000.• There are no presence of co-operative banks and private banks.• Majority of people in rural area don’t save in bank because of lack of financial knowledge ,low income,illiteracy,language and
cumbersome banking procedure .• No frills account is the objective of financial inclusion but its percentage in very low which accounts 31% only.• People who save are saving very low because of low income and high expenditure.• Most of the instructions are not provides in local languages.• People are aware of the service provided by bank but they hardly use them illiteracy language etc . most people don’t have an
account so there is no scope of visiting bank and using the services.• Money lenders are still dominant player in rural finance because of banks lengthy legal procedures , language barriers, delayed
credit and requirements of documents.• Most of the loan taken is used for unproductive purpose such as marriage, medical expenses etc. This may be major reason that
bank are not willing to grant loan• SHG/NGO are not making enhalf efforts to educate the rural people.• 68% of people haven't received any financial assistance from financial institutions From the above finding we can conclude that the purpose of financial inclusion is Not effective and. financial institution are inefficient in uplifting the life of rural people from poverty
Suggestions:•Co-operative banks and privates banks should start branches in rural area.•SHG/NGO should make more efforts in educating rural people.•Dominance of money lenders can be reduced when banks are well acquainted with rural people so efforts should be made to maintain relation with rural people.•Financial institutions should make effort to encourage people to start saving by personally assisting them in accessing financial services provides by banks•Financial institutions should provide easy loans and this loans should be directed towards staring up small business more over government should establish various training section to order to start up business and create self employment programs for uplifting the life of under section people.Limitations: The following are the limitation of the research•The study is only conducted in Gannavaram mandal of Krishna district•The program is recently started in Krishna district•Sample size is one 120 people of gannavaram mandal
conclusion
Financial inclusion is a tool with will facilitates financial services to venerable group of people it should be supported by all corners of society in order to up lift the life of weaker section of society. The spirit of financial inclusion must not be deviated the financial institutions ,government and NGO/SHG must act responsibly and ensure that the spirit of financial inclusion is not breached in the future ,which can help many people come out of poverty conditions