Measuring the impact of financial inclusion on rural poor in selected districts of saurashtra region analyzing the demand side and supply side

Abstract

quotBackground: 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. newlineIn 2005, for the first time the term financial inclusion was used and then after it became a national issue, seeking the access of formal financial services to the weaker sections of the society. Lot of initiatives were taken by various stake holders of financial inclusion namely, Government of India, Reserve Bank of India, NABARD, Planning Commission, etc. Tremendous studies and research have been donein pastandstillnumber of studies are being carried out in this field addressing the Challenges, Barriers, Milestones of the Financial Inclusion Programme. newlineIn this study the researcher has attempted to study Financial Inclusion status, achievements, and performance particularly in Saurashtra Region of Gujarat State. Many researchers have studied macro level financial inclusion considering national level and state level statistics. While here, the researcher aims to focus on selected 5 districts of Saurashtra Region by conducting a primary study addressing rural households of the region. Also the performance of the financial inclusion drive, particularly in Gujarat is carried out using recent data. newlineAim: newlineFinancial inclusion became a national mission in 11thfive year plan (2007-12), which was considered as a need to boost the economic growth and inclusive growth of India. Various initiatives, policies and steps were taken to implement financial inclusion drive. Many studies have been done so far addressing the micro finance issues, self help groups, performance measurement of financial inclusion by creation of an index, etc. newlineIn this study the researcher has calculated a financial inclusion index of Gujarat region for last five years, ranking the performance of each districts of Gujarat which studies financial inclusion considering the dimensions from both demand and