Financial inclusion in India: an analysis from the user-side perspective

IF 1.9 Q2 ECONOMICS INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS Pub Date : 2024-01-18 DOI:10.1108/ijse-03-2023-0162

Rajalaxmi Singh, Hrushikesh Mallick

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Abstract

Purpose

The aim of the paper is to examine the status and determinants of financial inclusion in India by using the recent micro-level survey data.

Design/methodology/approach

The authors construct a multidimensional financial inclusion index to measure the status of financial inclusion in the selected 17 states of India. Subsequently, the authors use the probit model estimation to examine the determinants of all financial inclusion indicators.

Findings

The authors find that southern and north-eastern states perform better in the overall financial inclusion index. In contrast, states like Odisha, Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh lag behind. The estimated result shows that the probability of being financially included is higher among urban, richer, educated and salaried individuals. Further, the findings indicate the lower penetration of bank branches and ATMs in the rural parts of the country.

Originality/value

While numerous studies have explored financial inclusion from a macro-level perspective, there exists a notable gap in the literature at the micro-level. This paper aims to address this gap and contributes to the existing literature in two ways. Firstly, it uses the recent micro-level survey data to construct a multidimensional financial inclusion index for the selected Indian states. Secondly, it examines individual-level attributes as the determining factors of financial inclusion, which has been overlooked in India.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2023-0162

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印度的金融包容性：从用户角度的分析

目的本文旨在利用最新的微观调查数据，研究印度金融包容性的现状和决定因素。随后，作者使用 probit 模型估计来研究所有普惠金融指标的决定因素。研究结果作者发现，南部和东北部各邦在总体普惠金融指数方面表现较好。相比之下，奥迪沙邦、中央邦、恰蒂斯加尔邦、拉贾斯坦邦和北方邦则落在后面。估计结果表明，城市、富裕、受过教育和拿工资的个人被金融包容性的概率较高。此外，研究结果表明，银行网点和自动取款机在该国农村地区的普及率较低。原创性/价值虽然已有许多研究从宏观角度探讨了金融包容性，但在微观层面的文献中还存在明显的空白。本文旨在填补这一空白，并从两个方面为现有文献做出贡献。首先，本文利用最近的微观调查数据，为选定的印度各邦构建了多维金融包容性指数。其次，本文研究了作为金融包容性决定因素的个人层面属性，这在印度一直被忽视。同行评议本文的同行评议历史见：https://publons.com/publon/10.1108/IJSE-03-2023-0162。

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来源期刊

INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS ECONOMICS-

CiteScore

3.20

自引率

5.30%

发文量

期刊介绍： The International Journal of Social Economics publishes original and peer-reviewed theoretical and empirical research in the field of social economics. Its focus is on the examination and analysis of the interaction between economic activity, individuals and communities. Social economics focuses on the relationship between social action and economies, and examines how social and ethical norms influence the behaviour of economic agents. It is inescapably normative and focuses on needs, rather than wants or preferences, and considers the wellbeing of individuals in communities: it accepts the possibility of a common good rather than conceiving of communities as merely aggregates of individual preferences and the problems of economics as coordinating those preferences. Therefore, contributions are invited which analyse and discuss well-being, welfare, the nature of the good society, governance and social policy, social and economic justice, social and individual economic motivation, and the associated normative and ethical implications of these as they express themselves in, for example, issues concerning the environment, labour and work, education, the role of families and women, inequality and poverty, health and human development.