Financial Inclusion A role of banks in south gujarat region

Abstract

To bring the un-banked people into the mainstream banking financial Inclusion is a conscious attempt, thereby financial services are made accessible to all sections of the population. It is a process that ensures the ease of access, availability and usage of the formal financial system for all members of an economy. In growth and development of an economy banking and financial services play important role. Financial inclusion is critical as accelerating access of poor to financial services and it often considered as an effective measure that can help to reduce poverty and lower income inequality. newline The concept of Financial Inclusion has a special significance for a growing economy like India in general and Gujarat in particular, as bringing the large segment of the productive sectors of the economy under formal financial network could unleash their creative capacities, besides augmenting domestic demand on a sustainable basis driven by income and consumption growth from such sectors. Use of the banking system in Gujarat is very low. This is surprising for a state that claims of a large entrepreneurial class. newline This study proposes to examine the role of bank in south Gujarat region with reference to financial inclusion. This study is based on primary data. Access to bank account is the first step to basic banking services in developing countries like India. The study also aims at examining whether banking service in south Gujarat is instrumental in bringing about Financial Inclusion. newline Survey research using a structured questionnaire was adopted in this study. Primary data collected from 863 respondents from five selected districts of south Gujarat namely Valsad, Navsari, Surat, Dang and Tapi, were analysed using SPSS software. Multistage random sampling method is use to select sample in this study. The tools used for the data analysis include, Three- way ANOVA, Chi-square test, Weighted Average, Multiple Response Analysis and Factor Analysis