Financial Inclusion in Karnataka A Management Perspective

Abstract

A study was conducted on financial inclusion in Karnataka. To accomplish the newlineobjectives of the study, primary and secondary data were used for the purpose. Analytical newlinetechniques used for the study were tabular analysis, growth rate analysis, financial inclusion newlineindex, Chow test, Garrett s ranking technique. newlineThe study estimated the growth in the banking performance indicators both at district newlinelevel and Karnataka state as a whole during 2000-01 to 2016-17 was positive and significant. newlineUdupi (0.629) and Kodagu (0.815) showed excellent performance in extent of financial newlineinclusion among the 30 districts of the state in case of overall and agriculture specific newlinerespectively. Kolar (0.104) and Bengaluru Urban (0.001) districts showed other extreme with newlinethe index of financial inclusion values which reflected least performance in financial inclusion newlinein the district among all the district of the state in case of overall and agriculture specific newlinerespectively during 2016-17. The growth for financial literacy centres in rural areas of newlineKarnataka was 99.92 percent during 2009-10 to 2016-17. The growth of number of accounts newlineunder Pradhan Manthri Jan Dhan Yojana in rural areas showed 39.41 percent for the state as a newlinewhole between 2014-15 and 2016-17. The growth of the number of group lending units and newlinebank loan advanced were 20.93 percent and 32.37 percent respectively. Further, the study newlineanalyzed the possible structural change in the business performance between pre-financial newlineinclusion period (1995-96 to 2004-05) and financial inclusion period (2005-06 to 2016-17) newlineand revealed that business performance underwent a structural change significantly in overall newlineand agricultural situation during financial inclusion period. Major problems experienced by newlinebeneficiaries of financial inclusion initiatives were low income, lack of interest in banking, newlinelengthy procedure etc. These results call for intensifying the efforts to achieve better newlineperformance in terms of different dimensions of financial inclusion considered in the study.