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1.1. INTRODUCTION

THE EFFECT OF FINANCIAL INCLUSION ONRURAL

DEVELOPMENT

Financial inclusion is delivery of banking services at an affordable cost ('no frills'

accounts,) to the vast sections of disadvantaged and low income group. Unrestrained

access to public goods and services is the sine qua non of an open and efficient

society. As banking services are in the nature of public good, it is essential that

availability of banking and payment services to the entire population without

discrimination is the prime objective of the public policy."

Financial Inclusion broadly refers to the delivery of banking and other financial

services to the people in rural villages who have had no access to these services as

they are not available in the villages. This concept is also termed as Financial

Exclusion. The level of banking exclusion varies across the countries and the world.

However, it is the same group of people everywhere who are affected by this financial

exclusion. People who have low income or no source of regular income, who lack

capabilities that can be converted into labour and who have the history of bad debtsand so on, are excluded from availing the financial services.

In the light of the generally accepted belief that improving access to various

financial services in the hitherto neglected rural villages, Financial Inclusion as an

instrument for bridging the urban-rural divide in the financial sector has been

identified. Keeping in pursuance of the directions of RBI, all the Commercial and

other banks have taken up the task of working towards Financial Inclusion.


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Financial Inclusion and Rural Development:

Poor deposit-base in the rural branches of the root cause that prevent banks

reaching out to the poor.

The Regional Rural Banks are the best fitted to be the vehicle for financial

inclusion in rural areas, Their Regional Character, their functioning in a

homogenous agro-climatic area, and their employees, hailing from the same

area, are best suited to relate with the rural customers.

The Initiatives of Reserve Bank of India (RBI) towards financial inclusion of

the rural poor include Introduction of basic no-frills saving accounts making

them accessible to vast sections of the rural poor, Issuance of simplified

General purpose Credit Card (GCC) without insistence on collateral or

purpose and Relaxation of KYC norms for opening new relationship accounts

in rural areas

Intermediaries through who banks reach-out to the rural poor in areas they

have no branches include Self-Help Groups, Non-Government Organizations

and Microfinance Institutions


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1.2. SIGNIFICANCE OF THE STUDY

The policy makers have been focusing on financial inclusion of Indian rural and

semi-rural areas primarily for three most important pressing needs.

RBI set up the Khan Commission in 2004 to look into financial inclusion and the

recommendations of the commission were incorporated into the mid-term review of

the policy (200506) and urged banks to review their existing practices to align them

with the objective of financial inclusion.

Creating a platform for inculcating the habit to save money:

The lower income category has been living under the constant shadow offinancial duress mainly because of the absence of savings. The absence of

savings makes them a vulnerable lot. Presence of banking services and

products aims to provide a critical tool to inculcate the habit to save. Capital

formation in the country is also expected to be boosted once financial

inclusion measures materialize, as people move away from traditional modes

of parking their savings in land, buildings, bullion, etc

2. Providing formal credit avenues:

So far the unbanked population has been vulnerably dependent of informal

channels of credit like family, friends and moneylenders. Availability of

adequate and transparent credit from formal banking channels shall allow the

entrepreneurial spirit of the masses to increase outputs and prosperity in the

countryside. A classic example of what easy and affordable availability of

credit can do for the poor is the micro-finance sector.

3. Plug gaps and leaks in public subsidies and welfare programs:

A considerable sum of money that is meant for the poorest of poor does not

actually reach them. While this money meanders through large system of

government bureaucracy much of it is widely believed to leak and is unable to

reach the intended parties. Government is therefore, pushing for direct cash

transfers to beneficiaries through their bank accounts rather than subsidizing

products and making cash payments. This laudable effort is expected to reduce

governments subsidy bill (as it shall save that part of the subsidy that is

leaked) and provide relief only to the real beneficiaries.


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1.3. OBJETIVES OF STUDY

The following are the main objectives of this project study. They are,

To identify awareness of banking services in rural area.

To identify the role of financial inclusion on rural development

To know the change in economic position of people before and after financial

inclusion.

1.4. SCOPE OF STUDY

This study will be selected villages in rural area of respected

Bheemgal Mandal Nizamabad district only.

And this project is general study about the financial awareness of

rural people in Bheemgal Mandal Nizamabad district

This study analysis the banking habit of rural area people of

Bheemgal Mandal, Nizamabad district.

This study will do selected villages in rural area of respected Bheemgal Mandal

Nizamabad district only. And this project is general study about the financial

awareness of rural people in Nizamabad district


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1.5. PERIOD OF STUDY

This project study completed in 45 days and this project depends on the financial

inclusion plans and strategies of selected banks in during the year of 2010 to 2014. It

finds results of the performance of the banks services.

1.6. LIMITATIONS

This project study is limited to banking sector.

This project study is limited to Bheemgal Mandal District of Nizamabad only.

This project study limit to 100 respondents only.

Time is one of the limiting factors that are only 45days (6 weeks).

It is limited the responses of respondents responsible.


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1.7. RESEARCH AND METHODOLOGY

1.7.1. SOURCE OF DATA:

This project study research about the effect of financial inclusion on rural

development. For the study data has been taken from primary and secondary data,

primary data collected through structured questionnaires by personal interview and

discussions, and secondary data from journals, articles and other websites. In this

project the major source of data is primary data.

1.7.2. SAMPLING:

An integral component of research design is the sampling plan. Especially it

addresses three questions: who to survey (sample unit) how many to survey (sample

size) and how to select them (sampling procedure). Making the census study of the

entire universe will be impossible on the account of limitations of time and money.

Hence sampling procedures representative data of the entire population

1.7.3. SAMPLING METHOD:

Random convenience sampling was used here because the study is restricted to

Bheemgal mandal district of Nizamabad which is in rural area.

1.7.4. SAMLING TOOL:

Questionnaire was used as a tool for the collection of data, mainly because it gives

the chance for timely feedback from respondents. Moreover respondents feel free to

disclose all necessary detail while filling up a questionnaire.

1.7.5. SAMPLE SIZE:

In this research of the study the size of the sample is 100 respondents.


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1.7.6. STATISTICAL TOOLS & TECHNIQUES:

Percentage of method is used in making comparison between two or more series of

data. This is used to describe relationship.

Percentage of respondents=100* No .of respondents/ Total respondents.

1.7.7. SELECTED VILLEGES:

This project study done in the below 10 villages out of 24 villages of Bheemgal

Mandal District of Nizamabad which is in rural area.

1-Babapoor

2-Bheemgal

3-Chengal

4-Gongoppula

5-Jagiryal

6-Muchkur

7-Mendora

8-Pallikonda

9-Pipri

10-Rahathnagar


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REVIEW OF LITERATURE

The purpose of literature review is to review various studies conducted and

published on Financial Inclusion Plan so far, to consolidate different views and

opinions and to find out research gap.

Joseph Massey (2010) said that, role of financial institutions in a developing

country is vital in promoting financial inclusion. The efforts of the government

to promote financial inclusion and deepening can be further enhanced by the

pro-activeness on the part of capital market players including financial

institutions. Financial institutions have a very crucial and a wider role to playin fostering financial inclusion. National and international forum have

recognized this and efforts are seen on domestic and global levels to

encourage the financial institutions to take up larger responsibilities in

including the financially excluded lot.

Mandira Sarma and Jesim Paise (2008) suggest that the issue of financial

inclusion is a development policy priority in many countries. Using the index

of financial inclusion developed in levels of human development and financial

inclusion in a country move closely with each other, although a few

exceptions exist. Among socio-economic factors, as expected, income is

positively associated with the level of financial inclusion. Further physical and

electronic connectivity and information availability, indicated by road

network, telephone and internet usage, also play positive role in enhancing

financial inclusion.

Michael Chibba (2009) noted that Financial Inclusion is an inclusive

development and Poverty Reduction strategy that manifests itself as part of the

emerging FI-PR-MDG nexus. However, given the current global crises, the

need to scale-up Financial Inclusion is now perhaps more important as a

complementary and incremental approach to work towards meeting the MDGs

than at any other time in recent history.


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Oya Pinar Ardic et al (2011) explained that using the financial access database

by CGAP and the World Bank group, this paper counts the number of

unbanked adults around the world, analyses the state of access to deposit and

loan services as well as the extent of retail networks, and discusses the state of

financial inclusion mandates around the world. The findings indicate that there

is yet much to be done in the financial inclusion arena. Fifty-six percent of

adults in the world do not have access to formal financial services

C. Paramasivan and V. Ganeshkumar (2013) said that Branch density in a state

measures the opportunity for financial inclusion in India. Literacy is a

prerequisite for creating investment awareness, and hence intuitively it seems

to be a key tool for financial inclusion. But the above observations imply that

literacy alone cannot guarantee high level financial inclusion in a state. Branch

density has significant impact on financial inclusion. It is not possible to

achieve financial inclusion only by creating investment awareness, without

significantly improving the investment opportunities in an India.

The Government of Indias committee on Financial inclusion in India

(Rangarajan committee 2008) defined the financial inclusion as the process

of ensuring access to financial services and timely and adequate credit where

needed by vulnerable groups such as the weaker sections and low income

groups at an affordable cost.

According to Rajan (2009), development of the financial system contributes to

economic growth. A perusal of literature on finance and economic

development reveals that the earlier theories of development concentrated on

labor, capital, institutions, etc., as the factors for growth and development.

There have been numerous researches analyzing how financial systems help in

developing economies. A great deal of consistency exists among economists

regarding financial development prompting economic growth. Many theories

have established that, financial development creates favourable conditions for

growth through either a supply leading or a demand-following channel.


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Shri KC Chakrabarty (2013), Deputy Governor, RBI. He has stated that RBI

will encourage new models of banking under financial inclusion that are more

connected to people. RBI is currently working on three year financial

inclusion plan as nearly after nationalization of banks, 60% of the countrys

population does not have bank accounts and nearly 90% do not get the loans.

According to Dr. K.C. Chakrabarty (2011), Deputy Governor, Reserve Bank

of India, financial Inclusion is the 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 inparticular at an affordable cost in a fair and transparent manner by mainstream

institutional players.

The RBI Deputy Governor, Smt Usha Thorat, (2010) in her speech delivered

in World Bank in June2010 said that the case for financial inclusion is not

based on the principle of equity alone but access to affordable and stable

banking services are required for inclusive growth.

A.Padma and Dr.Rambabu Gopisetti (2013) said that, India is reflects the

considerable economic growth and a moderate population growth with due

increase in per capita income.It is evident from the percentage of population

below the poverty line. India being a socialist, democratic republic, it is

imperative on the policies of the government to ensure equitable growth of all

sections of the economy. So, it should achieve 100% financial inclusion to

reach overall development inclusive of rural areas quality of life at par with

the people of urban area.


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According to Indian institute of banking and finance, "financial inclusion is

delivery of banking services at an affordable cost ('no frills' accounts,) to the

vast sections of disadvantaged and low income group. Unrestrained access to

public goods and services is the sine qua non of an open and efficient society.

As banking services are in the nature of public good, it is essential that

availability of banking and payment services to the entire population without

discrimination is the prime objective of the public policy."

Beck & De la Torre (2006) said that the breadth of financial inclusion in a

region or a country is usually measured by the percentage of people in the

region who have access to bank accounts.

Leeladhar, (2005) and Ghate, (2007) described that the focus on credit has

meant that policy and practice has thus far ignored the provision of a safe

place for savings for rural households, in spite of evidence that poor people do

save. India has approximately 300 million savings accounts which would

imply that about 59% of Indias adult population has access to a savings

account.

Leyshon and Thrift, (1993) measuring inclusion is perceived to be difficult,

financial inclusion is generally defined in terms of exclusion from the financial

system. Early discussion on financial exclusion was preceded by social

exclusion and focused predominantly on the issue of geographical access to

financial services, in particular banking outlets.

Ford et al (1996 &1998) at all said that financial exclusion is not just about

physical access caused by the changing topography of financial services.

Therefore, the debate has now broadened to include all types of people who

make little or no use of financial services and the processes of financial

exclusion. (Ford and Rowlingson, 1996; Kempson and Whyley, 1998).


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Kempson et al., (2000) Defines of financial exclusion vary considerably

according to the dimensions such as the concept of relativity, i.e., financial

exclusion defined relative to some standard (i.e., inclusion). This line of

thinking defines the problem of financial exclusion as that emanating from

increased inclusion, leaving a minority of individuals and households behind.

Asian Development Bank (2000) defines financial inclusion as Provision of a

broad range of financial services such as deposits, loans, payment services,

money transfers and insurance to poor and low-income households and their

micro-enterprises.

Treasury Committee, House of Commons, UK (2004) views financial

inclusion as Ability of individuals to access appropriate financial products

and services.

Scottish Government (2005) views financial inclusion as access for

individuals to appropriate financial products and services. This includes

having the capacity, skills, knowledge and understanding to make the best use

of those products and services. Financial exclusion by contrast, is the converse

of this.


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3.1. ABOUT NIZAMABAD DISTRICT

Figure: 3.1

Nizamabad district is located in the north-western region in the state of Telangana,

India. The district has an area of 7956 km2 while according to 2011 census its

population is 2,552,073 of which 23.06% were urban. The total population roughly

equal to the nation of Kuwait or US state of Neveda. This gives it a ranking of 165 thin

India (out of a total of 640). The district has a population density of 321 inhabitantsper square kilometer (830/ sq mi).


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3.1.1. BOUNDARIES AND TOPOGRAPHY

Nizamabad district is bounded on the North by Adilabad district and on the East by

Karimnagar district, on the South by Medak district on the West by Nanded district of

Maharastra State and Bidar of Karnataka State. The geographical area of this district

is 9, 80,595 acres or 7,956 Sq. Kms. The district lies between 180 5 and 190 of the

Northern latitudes and 770 4 and 780 37 of the Eastern longitudes. As the district is

situated at a considerable distance from the seacoast the climate is tropical.

The temperature fluctuations are high in the district. The normal mean minimum

temperature 13.70C and mean maximum is 39.90C, at times; the temperature goes as

low as 50C during winter and rises as high as 470C, during peak summer.

Table No: 3.1.

DESCRIPTION 2011 CENSUS

Total population 2,552,073

Male 1,252,191

Urban: 2.2lakhs Rural: 10.3lakhs

Female 1,299,882

Urban : 2.08lakhs Rural: 10.8lakhsS.C. 3.48Lakhs

S.T. 1.65lakhs

Population growth 8.80%

Literacy 61.25%

Area km2 7956

Density/km2 321

Sex ratio 1038

Per capita Income Rs 26,241

Number of Mandals 36


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3.2. ABOUT BHEEMGAL MANDAL

BHEEMGAL TELANGANA 503307

Bheemgal is a Mandal in Nizamabad District of Telangana State, India. Bheemgal

Mandal Head Quarters is Bheemgal town. It belongs to Telangana region. It is located

44 KM towards East from District head quarters Nizamabad.

Bheemgal Mandal is bounded by by Velpur Mandal towards North, Mortad

Mandal towards North, Sirkonda Mandal towards South, Kammarapalle Mandal

towards North. Koratla City, Nizamabad City, Kamareddy City, Nirmal City are the

nearby Cities to Bheemgal.

Bheemgal consist of 40 Villages and 18 Panchayats . Salampur is the smallest

Village and Bheemgal is the biggest Village. It is in the 424 m elevation (altitude).


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This Place is in the border of the Nizamabad District and Karimnagar District.

Karimnagar District Metpalli is east towards this place.

3.2.1. DEMOGRAPHICS OF BHEEMGAL MANDAL

Telugu is the Local Language here. Total population of Bheemgal Mandal is

57,262 living in 12,239 Houses, Spread across total 40 villages and 18 panchayats .

Males are 27,924 and Females are 29,338.

3.2.2. LIST OF VILLLAGES IN BHEEMGA

The following the table shows that the villages of Bheemgal Mandal. In Bheemgal

manadal nearly 35 villages located in that the 26 major (pachanyath) villages. Nearly

20 Thandas also in Bheemgal.

Table No: 3.2.

LIST OF VILLLAGES IN BHEEMGAL MANDAL

BABA NAGAR BABAPOOR BACHANAPALLY

BADABHEEMGAL BEJJORA BHEEMGAL

BHEEMNAGAR CHENGAL DEVAKKAPET

DEVENPALLY GANGARAI GONGOPPULA

JAGIRAYAL KAREPALLY KUPKAL

LINGAPOOR MENDORA MUCHKOOR

PALLIKONDA PIPRI(J) PURANIPET

RAHATNAGAR SALAMPOOR SECUNDRAPOOR

SIDDAPALLY TALLAPAALY


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3.2.3. BANKING SCENARIO IN BHEEMGAL MANDAL

The banking scenario in Bheemgal mandal the seven banks providing the Banking

services in the mandal. The banking services network is expanding the total Bheemgal

mandal and partially Velpoor .Morthad, Kammerpally and Sirikonda Mandals.

Almost all villages near to the banking services except the tribal villages. These

villages very far and located in mountains (forest).

3.2.4. BANKS OPERATED IN BHEEMGAL MANDAL

The following table shows that the banks which areoperate in Bheemgal mandal.

Table No: 3.3.

S.NO BANKS OPERATED IN BHEEMGAL MANDAL

1 STATE BANK OF HYDERABADBHEEMGAL

2 DECCAN GREEMANA BANKBHEEMGAL

3 ANDHRA BANKBHEEMGAL

4 NIZAMABAD DISTRICT CO-OPERATIVE BANKBHEEMGAL

5 STATE BANK OF INDIAPALLIKONDA

6 ING VYSYA BANKMUCHKOOR

7 STATE BANK OF HYDERABADSINKINDRAPOOR


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4.1. MEANING OF FINANCIAL INCLUSION

Even after 60 years of independence, a large section of Indian population still

remains unbanked. This malaise has led generation of financial instability and

pauperism among the lower income group who do not have access to financial

products and services. However, in the recent years the government and Reserve Bank

of India has been pushing the concept and idea of financial inclusion.

What is Financial Inclusion in banking? What is meaning of Financial Inclusion

in Indian context?

The term "financial inclusion" has gained importance since the early 2000s, a result

of findings about financial exclusion and its direct correlation to poverty.

Financial inclusion or inclusive financing is the delivery of financial services at

affordable costs to sections of disadvantaged and low-income segments ofsociety,in

contrast to financial exclusionwhere those services are not available or affordable.

4.2. DEFINITIONS OF FINANCIAL INCLUSION

1.

Financial inclusion may be defined as the process of ensuring access tofinancial services and timely and adequate credit where needed by vulnerable

groups such as weaker sections and low income groups at an affordable cost.

- Dr. C. Rangarajan (The Committee on Financial Inclusion, Chairman)

2. Financial Inclusion, broadly defined, refers to universal access to a wide range

of financial services at a reasonable cost. These include not only banking

products but also other financial services such as insurance and equity

products; Household access to financial services is depicted in.

- Dr.Raghuram G. Rajan (The Committee on Financial Sector Reforms,

Chairman)
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Societyhttp://en.wikipedia.org/wiki/Societyhttp://en.wikipedia.org/wiki/Financial_services


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3. The essence of financial inclusion is to ensure delivery of financial services

which include - bank accounts for savings and transactional purposes, low cost

credit for productive, personal and other purposes, financial advisory services,

insurance facilities (life and non-life).

4.

Financial inclusion broadens the resource base of the financial system by

developing a culture of savings among large segment of rural population and

plays its own role in the process of economic development. Further, by

bringing low income groups within the perimeter of formal banking sector;

financial inclusion protects their financial wealth and other resources in

exigent circumstances. Financial inclusion also mitigates the exploitation of

vulnerable sections by the usurious money lenders by facilitating easy access

to formal credit.

4.3. FINANCIAL INCLUSION GOALS

The term "financial inclusion" has gained importance since the early 2000s, a

result of findings about financial exclusion and its direct correlation to poverty. The

United Nations defines the goals of financial inclusion as follows:

access at a reasonable cost for all households to a full range of financial

services, including savings or deposit services, payment and transfer services,

credit and insurance;

sound and safe institutions governed by clear regulation and industry

performance standards;

financial and institutional sustainability, to ensure continuity and certainty of

investment; and

Competition to ensure choice and affordability for clients.


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4.4. FINANCIAL INCLUSION IN INDIA

TheReserve Bank of India (RBI) had set up the Khan Commission in 2004 to look

into financial inclusion and the recommendations of the commission were

incorporated into the mid-term review of the policy (200506). In the report RBI

exhorted the banks with a view to achieving greater financial inclusion to make

available a basic "no-frills" banking account. In India, financial inclusion first

featured in 2005, when it was introduced by K.C. Chakraborthy, the chairman of

Indian Bank.Mangalambecame the first village in India where all households were

provided banking facilities. Norms were relaxed for people intending to open

accounts with annual deposits of less than Rs. 50,000. General credit cards (GCCs)

were issued to the poor and the disadvantaged with a view to help them access easy

credit. In January 2006, the Reserve Bank permitted commercial banks to make use of

the services of non-governmental organizations (NGOs/SHGs), micro-finance

institutions, and other civil society organizations as intermediaries for providing

financial and banking services. These intermediaries could be used as business

facilitators or business correspondents by commercial banks. The bank asked the

commercial banks in different regions to start a 100% financial inclusion campaign on

a pilot basis. As a result of the campaign, states or union territories likePuducherry,

Himachal Pradesh and Kerala announced 100% financial inclusion in all their

districts. Reserve Bank of Indias vision for 2020 is to open nearly 600 million new

customers' accounts and service them through a variety of channels by leveraging on

IT. However, illiteracy and the low income savings and lack of bank branches in rural

areas continue to be a roadblock to financial inclusion in many states and there is

inadequate legal and financial structure.

In India, RBI has initiated several measures to achieve greater financial inclusion,

such as facilitating no-frills accounts and GCCs for small deposits and credit. Some of

these steps are:

Opening of no-frills accounts:Basic banking no-frills account is with nil or very

low minimum balance as well as charges that make such accounts accessible to vast

sections of the population. Banks have been advised to provide small overdrafts in

such accounts.
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mangalamhttp://en.wikipedia.org/wiki/Puducherryhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Puducherryhttp://en.wikipedia.org/wiki/Mangalamhttp://en.wikipedia.org/wiki/Reserve_Bank_of_India


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Relaxation on know-your-customer (KYC) norms: KYC requirements for

opening bank accounts were relaxed for small accounts in August 2005; thereby

simplifying procedures by stipulating that introduction by an account holder who has

been subjected to the full KYC drill would suffice for opening such accounts. The

banks were also permitted to take any evidence as to the identity and address of the

customer to their satisfaction. It has now been further relaxed to include the letters

issued by the Unique Identification Authority of India containing details of name,

address and Aadhaar number.

Engaging business correspondents (BCs):In January 2006, RBI permitted banks

to engage business facilitators (BFs) and BCs as intermediaries for providing financial

and banking services. The BC model allows banks to provide doorstep delivery of

services, especially cash in-cash out transactions, thus addressing the last-mile

problem. The list of eligible individuals and entities that can be engaged as BCs is

being widened from time to time. With effect from September 2010, for-profit

companies have also been allowed to be engaged as BCs. India map of Financial

Inclusion by MIX provides more insights on this.

Use of technology:Recognizing that technology has the potential to address the

issues of outreach and credit delivery in rural and remote areas in a viable manner,

banks have been advised to make effective use of information and communications

technology (ICT), to provide doorstep banking services through the BC model where

the accounts can be operated by even illiterate customers by using biometrics, thus

ensuring the security of transactions and enhancing confidence in the banking system.

Adoption of EBT: Banks have been advised to implement EBT by leveraging

ICT-based banking through BCs to transfer social benefits electronically to the bank

account of the beneficiary and deliver government benefits to the doorstep of the

beneficiary, thus reducing dependence on cash and lowering transaction costs.

GCC: With a view to helping the poor and the disadvantaged with access to easy

credit, banks have been asked to consider introduction of a general purpose credit card

facility up to `25,000 at their rural and semi-urban branches. The objective of the

scheme is to provide hassle-free credit to banks customers based on the assessment

of cash flow without insistence on security, purpose or end use of the credit.


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Simplified branch authorization:To address the issue of uneven spread of bank

branches, in December 2009, domestic scheduled commercial banks were permitted

to freely open branches in tier III to tier VI centers with a population of less than

50,000 under general permission, subject to reporting. In the north-eastern states and

Sikkim, domestic scheduled commercial banks can now open branches in rural, semi-

urban and urban centers without the need to take permission from RBI in each case,

subject to reporting.

Opening of branches in unbanked rural centers: To further step up the opening

of branches in rural areas so as to improve banking penetration and financial inclusion

rapidly, the need for the opening of more bricks and mortar branches, besides the use

of BCs, was felt. Accordingly, banks have been mandated in the April monetary

policy statement to allocate at least 25% of the total number of branches to be opened

during a year to unbanked rural centers.

Reserve Bank of India has plannedAadhaar-linked bank accounts for all adults of

India by January 2016 to meet its commitment on financial inclusion. It will greatly

transform India by preventing the poor people falling into debt-traps of unlawful

money-lenders, cashless transactions, elimination of poverty and corruption.

A basic Aadhaar-enabled bank account (AeBA) is a basic savings account

(zero-balance) where a debit-card is issued and the Aadhaar number is used as the

account number. It can be instantly opened (like a prepaid bankcard). Transactions

operate with fingerprint authentication only; as indicated by the Aadhaar logo on the

card. PIN is not issued to zero-balance AeBA because it is aimed at financial

inclusion of unbanked, illiterate, and rural people. Bankcard operates at micro-ATM

and other ATMs equipped with fingerprint scanner. Presently passbook is not issued

to these accounts due to infrastructure problem. Transactions like deposit, withdrawal,

transfer, and balance-check can be performed. AeBA is used for direct payment of

social security benefits such as pensions, scholarships, NREGA wages, healthcare,

and subsidy for LPG, kerosene, PDS ration, fertilizers etc.
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Aadhaarhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Aadhaarhttp://en.wikipedia.org/wiki/Reserve_Bank_of_India


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Pradhan Mantri Jan Dhan Yojana. Indian Prime Minister Narendra Modi

announced this scheme for comprehensive financial inclusion on his first Independence

Day speech on 15 August 2014. The scheme was formally launched on 28 August 2014

with a target to provide 'universal access to banking facilities' starting with Basic

Banking Accounts with overdraft facility of Rs.5000 after six months and RuPay Debit

card with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card & in next

phase, micro insurance & pension etc. will also be added. In a run up to the formal

launch of this scheme, the Prime Minister personally mailed to CEOs of all banks to gear

up for the gigantic task of enrolling over 7.5 crore (75 million) households and to open

their accounts. In this email he categorically declared that a bank account for each

household was a "national priority".

On the inauguration day of the scheme, 1.5 Crore (15 million) bank accounts were

opened.

4.5. FINANCIAL INCLUSION AND RURAL DEVELOPMENT

The above statement by father of the nation is valid today also, because now also

major proportion of population in India live in villages, it states that most of the

human capital stays in rural India, development of which is must to accelerate thegrowth rate of the country. Hence there is a close relationship between financial

inclusion and rural development.

Poor deposit-base in the rural branches of the root cause that prevent banks

reaching out to the poor.

The Regional Rural Banks are the best fitted to be the vehicle for financial

inclusion in rural areas, Their Regional Character, their functioning in a

homogenous agro-climatic area, and their employees, hailing from the same

area, are best suited to relate with the rural customers.

The Initiatives of Reserve Bank of India (RBI) towards financial inclusion of

the rural poor include Introduction of basic no-frills saving accounts making

them accessible to vast sections of the rural poor, Issuance of simplified

General purpose Credit Card (GCC) without insistence on collateral or

purpose and Relaxation of KYC norms for opening new relationship accounts

in rural areas
http://en.wikipedia.org/w/index.php?title=Basic_Banking_Account&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Basic_Banking_Account&action=edit&redlink=1http://en.wikipedia.org/wiki/RuPayhttp://en.wikipedia.org/wiki/RuPayhttp://en.wikipedia.org/w/index.php?title=Basic_Banking_Account&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Basic_Banking_Account&action=edit&redlink=1


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Intermediaries through who banks reach-out to the rural poor in areas they

have no branches include Self-Help Groups, Non-Government Organizations

and Microfinance Institutions

How its effect the Rural Development?

The Government of India and the Reserve Bank of India have been making concerted

efforts to promote financial inclusion as one of the important national objectives of

the country. Some of the major efforts made in the last five decades include -

nationalization of banks, building up of robust branch network of scheduled

commercial banks, co-operatives and regional rural banks, introduction of mandated

priority sector lending targets, lead bank scheme, formation of self-help groups,

permitting BCs/BFs to be appointed by banks to provide door step delivery of

banking services, zero balance BSBD accounts, etc. The fundamental objective of all

these initiatives is to reach the large sections of the hitherto financially excluded

Indian population.

4.6. IMPORTANCE OF FINANCIAL INCLUSION FOR RURAL

DEVELOPMENT

Access of financial services is limited in the rural areas when it is compared to

urban and sub urban areas i.e. inclusion is more in urban and sub urban areas.

Inability of getting access to formal sources of finance forcing them to

approach the local money lenders who charges very higher interest rates some

times 24% to 50%, this makes the poor to become more poorer

High portion of the earnings of these people are paid in the form of interest.

Nothing is left for saving. When there is no savings there is no choice of

investment.

Participation of entire population of the country in well functioned financial

system boosts the economy, which mostly required by developing countries


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Most of the people in rural areas are depend on agriculture and daily wage

which doesnt ensure regular income. As a result, many people have to

necessarily depend either on their own sources or informal sources of finance,

which are generally at high cost

Access to safe, easy and affordable credit and other financial services by the

poor and vulnerable groups and disadvantaged areas enable the conditions for

growth, increase social equality and reduce income disparities and poverty.

Access to the formal financial system for excluded provides them equal

opportunities to participate in socio and economic activities

Financial assistance helps them to overcome sudden financial shocks

As financial inclusion increases poverty decreases which is prime objective of

country

Financial inclusion provides formal identity, access to payments system &

deposit insurance

Countries with large proportion of population excluded from the formal

financial system also show higher poverty ratios and higher inequality,

countries with low levels of income inequality tend to have lower levels of

financial exclusion, while high levels of exclusion are associated with the least

equal ones


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PART-A

DEMOGRAPHICAND SOCIO ECONOMIC CONDITION

1. Gender of the Respondents:

a) Male ( ) b) Female ( )

Figure: 5.1.

The above pie chart consist the respondents gender. In this case study 65% males

and 35% females were involved. And they were freely shared their opinion with us.

65%

35%

MALE

FEMALE


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2. Age of the Respondents:

a)15-25 ( ) b)25-35 ( ) c)35-45 ( )d)45-55 ( ) e) 55 above ( )

Figure: 5.2.

The above pie chart reveals the AGE group of respondents. The age divided into 5

groups. In this study the most of respondents belongs to the a) 15-25 age group with

33%.Than second place is b) 25-35 group with 26%. In third place d) 45-55 group

with 16%.the fourth place is 13% that is c) 35-45 group. The least is e) 55 above

group with12%.

33%

26%

13%

16%

12%

a)15-25

b)25-35

c)35-45

d)45-55

e)above55


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3. Occupation of the Respondent:

a) Agriculture ( ) b) Cultivator labor ( ) c) Construction labor ( )

d) Industrial labor ( ) e) Small business ( ) f) Govt employee ( ) g) PVT Employee

( ) h) NRI ( ) I) Student ( ) j) others ( )

In this project the different types of occupation people are involved. In that the

most of respondents are farmers with 30%. Others and students are after then the

agriculture with 20% and 17%. Now days the farmers and students are mostly

involved in banking activities because the government directly given to the scheme

benefits through the banks like subsides, fee reimbursements and scholarships. Small

business with 12% and private employees with 9%. NRIs with 6% and government

employees with4% participated in this study.

30%

2%

0%

0%

12%

4%9%6%

17%

20%

Agriculture

Cultivate labour

Construction labor

Industrial labor

Small business

Govt employee

Pvt employee

NRI's

Student

Others

Figure: 5.3.


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4. Education qualification of the Respondents:

a) Illiterate ( ) b) Primary ( ) c) SSC ( ) d) Intermediate ( ) e) UG ( ) f) PG ( )

Figure: 5.4.

The above pie chart discloses the education levels of the respondents. The different

type of respondents were involve this case study, like illiterate, primary, SSC,

intermediate, UG and PG.

In this study the UG (degree) holders are occupied the first place with 32%. The

second place occupied by the illiterate respondents with 22%. Then the SSC, primary

and intermediate respondents are involved with the 15%, 14% and 11%. The least

place occupied by the PG holders with 6% because in rural area the people have less

facility to study the higher education.

22%

14%

15%11%

32%

6%

Illiterate

Primary

SSC

Intermediate

UG

PG


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5. Community of the Respondents:

a) OC ( ) b) BC ( ) c) SC ( ) d) ST ( ) e) Others ( )

Figure: 5.5.

The above pie chart reveals the community of the respondents. The most of

respondents belongs to the BCs (Back ward) community. The percentage is 65%.

Then SC and ST respondents involved with same 12%. Others with6% and OCs with

the 5%.

5%

65%

12%

12%6%

OC

BC

SC

ST

OTHERS


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6. Income of the Respondents:

a) Less than10000 ( ) b) 10000-20000 ( ) c) 20000-40000 ( )

d) 40000-60000 ( ) e) 60000-100000 ( ) f) More than 100000 ( )

Figure: 5.6.

The above pie chart concludes the income levels of the respondents. There are six

types of income levels like less than the 10000, 10000-20000, 20000-40000, 40000-

60000, 60000-1 lack and more than 1 lack. The majority respondents having, e) group

that is 60000-100000 (46%). And the 37% of respondents having the more than 1 lack

income. 17% respondents having the d group income level (40000-60000). There is

no one in a, b and c group income level respondents.

0%

0%

0%

17%

46%

37%a)100000


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PART-B

MEASURING ACCESS TO BANKING

7. Do you know the Banking services?

a) Yes ( ) b) No ( )

Figure: 5.7.

The pie chart includes the awareness of banking services of the respondents. In this

study it concludes that the total respondents are known the banking services. Now a

days every one known the banks and the basic services like deposits and loans. The

banks, RBI and governments are encouraging the banking habit through creating

different types of plans like BSBD account, BC& BF model.

100%

0%

a) YES

b) NO


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8. Do you have Bank Account?

a) Yes ( ) b) No ( )

Figure: 5.8.

The above pie chart indicates the having bank account of respondents. All most of

all respondents having the bank accounts, who are involved this study. Respondents

having bank accounts because of the all subsides, scholarships, crop loans and SHG

loans given through the banks and co-operatives banks.

a)YES, 100%

b) NO, 0%

a)YES

b) NO


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9. In which financial institution do you have account?

a) Commercial Bank ( ) b) Co-operative Bank ( ) c) Postal office ( )

d) Micro finance ( ) f) Private Banks

Figure: 5.9.

The above pie chart indicate the financial institution which the respondents having

accounts. It shows that the most of respondents having accounts in commercial banks

of the public sector only. 93% of respondents having the Accounts in commercial

banks.5% of respondents having the account in co-operative banks and in postal

office 2% of respondents having account in postal office. There is no one respondent

have the account in private banks in this location because there is no existence of

private banks.

93%

5%

2% 0%0%

Commercial bank

Co-operative Bank

Postal office

Micro Finance

Pvt Banks


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10. Frequency of Bank Visiting?

a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Quarterly ( ) e) Half-yearly ( ) f)

Yearly ( )

Figure: 5.10.

The above pie chart shows the frequency of visiting the banks. There are six types

of visiting groups. In that the most of respondents (65%) were visits the bank in

monthly once because, SHG groups, pensioners and loan creditors compulsory visit

the monthly once. 25% of respondents of this study visit the bank weekly once. The

formers and other visit the banks mostly at begin of the agriculture.

1%

25%

65%

7%

2%

0%

a)Daily

b)Weekly

c)Monthly

d)Quartely

e)Half yearly

f)Yearly


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11. Do you know the following services provided by your bank?

a) Deposits ( ) b) Loans ( ) c) NEFT ( ) d) Locker facility ( ) e) ATM ( )

Table No: 5.1.

SERVICES YES NO

Deposits 99 1

Loans 99 1

NEFT 28 72

Locker facility 41 59

Insurance 26 74

ATM 66 34

The above table and column chart indicated the respondents awareness about the

banking services like deposits, loans, NEFT, locker facility, insurance and ATM

services.

In this project study the 99% respondents had known the deposits and loans

services. ATM (66%) and locker facility (41%) service known by respondents.

NEFT (28%) and bank insurance (26%) service are known the very less respondents.

99 99

28

41

26

66

1 1

72

59

74

34

0

20

40

60

80

100

120

Deposits Loans NEFT Locker Insurance ATM

YES

NO

Figure: 5.11.


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PART-C

LEVEL OF AWARENESS

12. Level of awareness of banking services:

a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )

Table No: 5.2.

Particulars Value

Mean 3.11

Median 3

Mode 3

Standard deviation 0.60126

Count 100

The above table contains the awareness of BANKING SERVICES. The

descriptive statistics indicated that the most of respondents FAIRLY AWARE about

the banking services.

13. Level of awareness of banking services charges:


Table No: 5.3.

Measures Value

Mean 2.35

Median 2

Mode 2


Count 100

The above table states the awareness of BANKING CHARGES. The descriptive

statistics shows that the most of respondents POORLY AWARE about the Banking

Charges.


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14. Level of awareness of Internet banking:


Table No: 5.4.

Particulars Value

Mean 1.82

Median 2

Mode 1


Count 100

The above table discloses the awareness of INTERNET BANKING. The

descriptive statistics shows that most of respondents DONT KNOW about the

Internet Banking.

15. Level of awareness of Mobile Banking:


Table No: 5.5.

Particulars Value

Mean 1.78

Median 1

Mode 1


Count 100

The above table consist the Awareness of MOBILE BANKING. The descriptive

statistics indicated the most of respondents DONT KNOW about the mobile banking.


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16. Level of awareness of Debit card / Credit card:


Table No: 5.6.

Particulars Value

Mean 2.65

Median 3

Mode 3


Count 100

The above table reveals the awareness of ATM CARD/ DEBIT CARD. The

descriptive statistics indicated the most of respondents FAIRLY AWARE about the

ATM card/ DEBIT card.

17. Level of awareness of Bank Mortgage:


Table No: 5.7.

Particulars Value

Mean 2.17

Median 2

Mode 2


Count 100

The above table contains the awareness of BANK MORTGAGE. The descriptive

statistics indicated that the most of respondents POORLY AWARE about the Bank

Mortgage.


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18. Overall perception of banking service quality:

a) Normal service ( ) b) Poor quality service ( )

c) Good quality service ( ) d) Better quality service ( )

Table No: 5.8.

Particulars Value

Mean 2.53

Median 3

Mode 3


Count 100

The above table contains the perception of the Respondents about the services of

the banks. The descriptive statistics indicated that the most of Respondents felt that

the banks provided GOOD QUALITY OF SERVICES.


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PART-D

CHANGES OF FOLLOWING THINGS IN RURAL AREA

AFTER ACCESS TO THE BANKS

19. Change in level of savings of the account holder?

a) Increase ( ) b) Decrease ( ) c) No change ( )

The above table carries the changes in LEVEL OF SAVINGS of the

Respondents. The descriptive statistics indicated that the most of respondents savings

level has been INCREASED after access to the banking services.

20. Change in level of borrowings of the account holder?


The above table contains the changes in LEVEL OF BORROWINGS of the

Respondents. The descriptive statistics shows that the most of respondents

Borrowings has been INCREASED after access to the banking services.

Table No: 5.9.

Particulars Value

Mean 0.84

Median 1

Mode 1


Count 100

Table No: 5.10

Particulars Value

Mean 0.05

Median 0

Mode 1


Count 100


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21. Change in level of income of the account holder?


The above table includes the changes in LEVEL OF INCOME of theRespondents. The descriptive statistics disclosed that the most of respondents income

level has been INCREASED after access to the banking services.

22. Change in level of paying capacity of the account holder?


The above table consist the changes in level of PAYING CAPACITY of the

Respondents. The descriptive statistics indicated that the most of respondents paying

capacity level has been INCREASED after access to the banking services.

Table No: 5.11.

Particulars Value

Mean 0.71

Median 1

Mode 1


Count 100

Table No: 5.12.

Particulars Value

Mean 0.51

Median 1

Mode 1


Count 100


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23. Change in level of financial status of the account holder?


The above table contains the changes in level of FINANCIAL STATUS of the

Respondents. The descriptive statistics indicated that the most of respondents

Financial Status has been INCREASED after access to the banking services.

24. Change in level of social status of the account holder?


The above table holds the changes in level of SOCIAL STATUS of the

Respondents. The descriptive statistics indicated that the most of respondents Social

Status has NO CHANGE even after access to the banking services.

Table No: 5.13.

Particulars Value

Mean 0.51

Median 1

Mode 1


Count 100

Table No: 5.14.

Particulars Value

Mean 0.33

Median 0

Mode 0


Count 100


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25. Change in level of poverty of the account holder?


The above table involves the changes in LEVEL OF POVERTY of the


Poverty level hasbeen DECREASED after access to the banking services.

26. Change in self employment opportunities?


The above table contains the changes in SELF EMPLOYMENT of the

Respondents. The descriptive statistics indicated that the most of respondents self

employment has NO CHANGE even after access to the banking services.

Table No: 5.15.

Particulars Value

Mean -0.6

Median -1

Mode -1


Count 100

Table No: 5.16.

Particulars Value

Mean 0.4

Median 0

Mode 0


Count 100


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27. Change in decision making power?


The above table consist the changes in DECISION MAKING POWER of the


decision making power has NO CHANGE even after access to the banking

services.

28. Change in awareness of banking procedure?


The above table includes the changes in BANKING PROCEDURE of the


Banking procedures has been INCREASED after access to the banking services.

Table No: 5.17.

Particulars Value

Mean 0.18

Median 0

Mode 0


Count 100

Table No: 5.18.

Particulars Value

Mean 0.74

Median 1

Mode 1


Count 100


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6.1. FINDINGS

From above analysis I have founded out that.

The above 55 age group people not availed the banking services because oflack of banking knowledge.

It observed that the most people depended on the agriculture, in rural area.

The 22% of rural area people facing the illiteracy problem..

Almost all the respondents having the bank account but half the respondents

not involved frequently in banking transactions.

The 65% of respondents frequency of visiting bank is very far (monthly once)

It is founded that the half of the respondents doesnt aware the other services

of banking except deposits and loans.

Many respondents dont know the banking charges exactly.

It is founded that the most of respondents dont know the Internet Banking

and Mobile Banking services.

It is observed that the usage of ATM service is gradually increasing.

It is founded that banking services quality in rural area is good.

It is observed that the respondents savings level, income level and financial

status improved after access the banking services.

It is founded that the level of borrowings and paying capacity also improved

after access the banking services.

It is founded that the level of poverty level is steadily decreasing after

accessing the banking services.

It is founded that the even after access the banking services the self-

employment, decision making power and other basic facility.

It is notified that the banking procedure of respondents is also increased.


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6.2. SUGGESTIONS

From the above analysis I would like to suggest the following to Telangana

government and central government as well as three banks SBH, DGB NDCOB

which leads to further development in Bheemgal mandal.

It is suggested to governments and banks to create the awareness especially

illiterate people and 55 age groups.

It is suggested to government of Telangana to improve the literacy in rural

area.

It is suggested to all the banks of Bheemgal mandal to increase the frequency

of visiting the bank (no, of times) customers. It suggested to the banks try to improve the banking knowledge and habit of

the people.

The banks also create the awareness about the other services like NEFT,

INSURANCE, and MUTUAL FUND AND STOCK TRADE.

The banks create the awareness about the Mobile banking, Internet banking

and bank mortgage.

The ATM service is most of the respondents using, but the ATM centers dose

not fulfill the customer needs. So it suggested to the DGB and NDCOB to

provide the ATM centers.

It is suggested to the DGB to appoint the BC (business correspondents) in the

remote area.

The financial status of people is good try to keep it by providing the facilities

by the banks.

The banks should provide the facilities to create self employment schemes.


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6.3. CONCLUSION

From the above analysis it would like to conclude,

From this study it known that the banks which are working in Bheemgal mandal theyimplementing the financial inclusion plan like BSBD account BC&BF model etc.

Importance of financial inclusion is increased, because the benefits of the

financial services are not provided to all the people of the society (Bheemgal

mandal).

Inclusive growth is very essential for the rural development of the country.

Various studies examined that there is a close relationship between financial

inclusion and development. But due to the various constraints the inclusive

growth is prohibited such as lack of financial literacy, poverty, lack of

advanced technology etc.

By the implementing the financial inclusion plans in Bheemgal mandal the

development is partly done. The rural people know the banking services by the

financial inclusion plans.

The financial literacy is play vital role in development of individual and

society.

There is a huge need to adopt various strategies for the financial inclusion

such as adaptation of advanced technology, opening up the bank branched in

rural areas, introduction of new saving schemes for low income people etc.


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APPENDICES

THE EFFECT OF FINANCIAL INCLUSION ON RURAL

DEVELOPMENT

QUESTIONNARIES

PART.A

DEMOGRAPHIC AND SOCIO ECONOMIC CONDITIONS:

Name of the District: Name of the Mandal:

Name of the Village:

1. Name of the Respondent:

2. Gender of the Respondent:

a) Male ( ) b) female ( )

3. Age of the Respondent:

a) 15-25 ( ) b) 25-35 ( ) c) 35-45 ( ) d) 45-55 ( ) e) 55- above ( )

4. Mobile Number of the Respondent:

5. Occupation:

a) Agricultural ( ) b) Cultivator labor ( ) c) Construction labor ( )

d) Industrial labor ( ) e) Small Business ( ) f) Govt Employee ( )

g) Pvt Employee ( ) h) NRIs ( ) i) others ( )


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6. Education qualification of the Respondent:

a) Illiterate ( ) b) Primary ( ) c) SSC ( ) d) Intermediate ( ) e) UG & PG ( )

7. Size of the Family:

a) Less than 4 ( ) b) 4 members ( ) c) 4-6 members ( ) d) More than 6 ( )

8. Community (cast) of the Respondent:

a) OC ( ) b) BC ( ) c) SC ( ) d) ST ( ) e) others ( )

9. Religion of the Respondent:

a) Hindu ( ) b) Muslim ( ) c) Christian ( ) d) others ( )

10. Annual Income of Respondent:

a) Less than 10000 ( ) b) 10000-20000 ( ) c) 20000-40000 ( ) d) 40000-50000 ( )

e) 50000-100000 ( ) f) 100000 & above ( )

11. Sources of Income of the Respondent:

a) Crop income ( ) b) wage / salary ( ) c) Income from homes ( )

d) Income from business ( ) e) profession Income ( ) f) other sources ( )

12. Holding of Land by Respondent:

a) No land ( ) b) less than 1 Acre ( ) c) 1-2 Acre ( ) d) 2-3Acre ( )

f) 3-4 Acre ( ) g) 4-5 Acre ( ) h) 5 & above ( )

13. Type of House holding by Respondent:

a) Thatched House ( ) b) Roofed House ( ) c) Hut house ( )

d) Govt scheme house ( ) e) Rent house ( )

14. Total Assets value of the Respondent:

a) Less than 1 lack ( ) b) 1-2 lack ( ) c) 2-3 lack ( ) d) 3-4 lack ( )

e) 4-5 lack ( ) f) 5 & above ( )


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PART.B

MEASURING DEMAND SIDE FINANCIAL INCLUSION

ACCESS TO BANKING

15. Do you know the Banking services?

a) Yes ( ) b) No ( )

16. Distance of banks from their village?

a) Less than 1 KM ( ) b) 1-3 KM ( ) c) 3-5 KM ( )

d) 5-10 ( ) e) More than 10 KM ( )

17. Do you have Bank Account?

a) Yes ( ) b) No ( )

18. If have what type of account?

a) Saving A/c ( ) b) Current A/c ( ) c) Joint A/c ( ) d) No-frill A/c ( ) e) SHG A/c (

)

19. In which financial institution do you have account?

a) Commercial Bank ( ) b) Co-operative Bank ( ) c) Postal office ( )

d) Micro finance Bank ( ) e) other Pvt Ltd Banks ( )

20. What type of ID proofs your submitted?

a) Election ID ( ) b) Ration card ( ) c) Adhar card ( ) d) Driving license ( ) e) other (

)

21. In your family how many having Bank accounts?

a) Only one ( ) b) Two ( ) c) Three ( ) d) Four ( ) e) All ( )


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22. Frequency of bank visiting?

a) Daily ( ) b) Weekly ( ) c) Monthly ( )

d) Quarterly ( ) e) Half yearly ( ) f) Yearly ( )

23. Do you know the following services provided by your bank?

a) Deposits ( ) b) Loans ( ) c) NEFT ( ) d) Locker facility ( )

e) Insurance ( ) f) ATM services ( )

24. Do you know the rates of interest in your bank?

a) Yes ( ) b) No ( )

25. Do you have ATM card?

a) Yes ( ) b) No ( )

26. Are you utilization of ATM services?

a) Yes ( ) b) No ( )

27. Do you know how to withdraw money from the bank/ ATM?

a) Yes ( ) b) No ( )

28. Who will help to use banking services / ATM services?

a) Family member ( ) b) Friends ( ) c) Existing staff ( ) d) BC staff ( )

29. Do you have Business center & business facility in your village?

a) Yes ( ) b) No ( )

30. Frequency of deposits & withdrawals by account holder?

a) Weekly ( ) b) Monthly ( ) c) Quarterly ( ) d) Half yearly ( ) e) Yearly ( )


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PART.C

LEVEL OF AWARENESS

31. Level of awareness of banking services:


32. Level of awareness of banking services charges:


33. Level of awareness of Internet Banking:


34. Level of awareness of Mobile Banking:


35. Level of awareness of Debit card /Credit card:


36. Level of awareness of Bank Mortgage:


37. Overall perception of banking service quality in rural area:

a) Normal service ( ) b) Poor quality service ( ) c) Good quality service ( )

d) Better quality service ( )


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PART.D

CHANGES OF FOLLOWING THINGS IN RURAL AREA

AFTER ACCESS TO THE BANKS

38. Change in level of savings of the account holder?


39. Change in level of Borrowings of the account holder?


40. Change in level of Income of the account holder?


41. Change in level of paying capacity of the account holder?


42. Change in level of financial status of the account holder?


43. Change in level of the social status of the account holder?


44. Change in the level of poverty of the account holder?


45. Change in self employment opportunities


46. Change in decision making power



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47. Change in awareness of banking procedure


48. Change in other basic facilities


49. Change in participation in social /political activities


THANK YOU


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BIBILOGRAPHY

REFERENCE

1. Joseph Massey, Role of Financial Institutions in Financial Inclusion,

FICCIs Banking & Finance Journal 2010

2. Mandira Sarma and Jesim Pais, Financial Inclusion and Development: A

Cross Country Analysis, Indian Council for Research on International

Economic Relations, pp 1-28.2008.

3. Michael Chibba, Financial Inclusion, Poverty Reduction and the millennium

Development Goals, European Journal of Development Research Vol.

21.2009

4. Oya Pinar Ardic Maximilien Heimann Nataliya Mylenko, Access to

Financial Services and the Financial Inclusion Agenda Around the World,

The World Bank, pp 1-17 2011

5. C. Paramasivan and V. Ganeshkumar, Overview of Financial Inclusion in

India, INTERNATIONAL JOURNAL OF MANAGEMENT AND

DEVELOPMENT STUDIES 2013.

6.

Rangarajan C, Report of the Committee on Financial Inclusion 2008

7. Chakrabarty K.C, Financial Inclusion in India: Journey So Far and the Way

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WEBSITES

www.adb.org

www.allbankingsolution.com

www.banking.org.za

www.financialservices.gov.in

www.iibf.org.in

www.investpedia.comwww.nabard.org

www.rbi.org.in

www.researchgate.com
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