Measuring the impact of financial inclusion on urban poor of saurashtra region analyzing demand side and supply side

Abstract

quotBackground: newlineFinancial Inclusion has been a national agenda since 2005, when it was first time used by Reserve Bank of India. India is a country with 68.84% population living in rural areas while 31.16% of population live in urban areas, according to the Census 2011. newlineRBI defines Financial Inclusion as process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular. newlineGovernment of India, Reserve Bank of India, NABARD, etc are the key stakeholders of financial inclusion drive in India. Number of initiatives were taken in past and are continued in present with future implications to include the excluded group of people in the financial inclusion ambit in India. newlineThis study specially focuses on the financial inclusion status and achievements in urban areas of Saurashtra Region of Gujarat state. In order to cover the urban locality, municipal corporations located in the Saurashtra region namely Bhavnagar, Jamnagar, Junagadh and Rajkot is included in the study, as a representative of the urban locality. newlineIn this study the researcher attempts to study the financial inclusion index of India and Gujarat for past five years ranging from 2012 13 to 2016 17. This index helps to draw conclusions regarding the development and progress of financial inclusion drive in India as a whole and in Gujarat. To study the micro level of financial inclusion, a primary survey is undertaken to analyse the financial inclusion achievement amongst the households residing in the urban areas of the Saurashtra region. newlineAim: newlineIn the 11th five year plan (2007 2012), financial inclusion became the national mission and hence was identified as a major driving force for inclusive economic growth of the country. Following to that the Pradhan Mantri Jan Dhan Yojana was launched by Shri Narendra Modi, on 28th August, 2014 which is considered as one of the biggest financial inclusion initiative in the world. newlineIn ord