A Comparative Study of Financial Inclusion in Madhya Pradesh and Chhattisgarh

Abstract

Financial Inclusion is one of the most important aspects in the present scenario for inclusive growth and development of economies, as it is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost. This study is an attempt to comparatively analyse Financial Inclusion including usage of banking and other regulated products at an optimal cost, in two states namely, Madhya Pradesh and Chhattisgarh. Madhya Pradesh is second largest state in India with over 75 million inhabitants living in 54,903 villages, with a varied demographic and economic profile and vast disparities on many vital counts. In recent years, state s GDP growth has been above the national average. Chhattisgarh is state in central India with a population of 28 million, formed in the year 2000 by partitioning 16 Chhattisgarhi speaking southeastern districts of Madhya Pradesh. The economy of Chhattisgarh has grown rapidly in recent years. However, the state still has very low levels of per capita income as compared to the other states. Financial exclusion has been pointed as one of the major drivers of poverty; hence, financial inclusion is attracting worldwide attention. newlineA nation and a state can grow economically and socially if its weaker section can turn out to be financial independent, the same applies to Madhya Pradesh and Chhattisgarh. Thus, the role of Financial Inclusion in furthering the growth and development process is very significant and in recent few years lot many efforts are initiated and focused by Government and responsible Authorities for achieving Financial Inclusion which again provide the strong base and urge for the study and research on Financial Inclusion. The study includes a brief introduction of Financial Exclusion, Financial Inclusion, Evolution of Financial Inclusion in India, comparative analysis of efforts and various schemes by Government of India and the state governments. The findings and c