Determinants of Financial Inclusion of Urban Women: Evidence from Ahmedabad, India
One of the utmost active practices is to adopt an inclusive growth policy to achieve economic growth. An inclusive growth means include the excluded population into all benefits. Financial inclusion is a financial upliftment process, to help poor, slum, backward and women to come out from the poverty trap. Financial inclusion means inclusion of excluded population to access formal financial services like savings, borrowings, insurance and pension from formal financial institutions. For constructing strong financial system, it is very necessary to know first that whether sources of financial services are actually reaching to the unreached people; the awareness among people for the formal financial services i.e., financial literacy and inclusion of the excluded population by providing banking services. Among socio-economic problems in India, gender inequality is one of the major affecting problems. A noteworthy access gap has taken place between male and female regardless of significant development in broadening access to formal financial products in the country. The main objectives of this research are to examine nature and extent of accessing major financial inclusion services including Government financial inclusion programs by urban women and to analyze the determinants of financial inclusion for urban women of Ahmedabad district (having highest urban female population in Gujarat). Primary data collection method is used through semi-structured questionnaire. Probit model is constructed to analyze the financial inclusion determinants of urban women of Ahmedabad district. Considered major financial inclusion services are opening bank account, savings, borrowings and insurance. Major finding of this study is that poor urban women are being considered as less benefitted from financial inclusion services, where in-migration, financial literacy and borrowings were found to significantly influence the participation of urban women in financial inclusion programs.
JEL Codes: C40, G2, G21, G30, R0, R2, R11, R23, R38.
Census of India (2011). District Census Handbook – Ahmedabad. Village and Town Directory, Part- XII-A, Series - 25, Directorate of Census Operations Gujarat, P. 141.
CRISIL (2013). CRISIL Inclusix- An Index to Measure India’s Progress on Financial Inclusion. June, CRISIL, Mumbai.
Demirguc-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2015). The Global Findex Database 2014: Measuring Financial Inclusion around the World. Policy Research Working Paper 7255. Washington, DC: World Bank; https://doi.org/10.1596/1813-9450-7255.
GOI (2011). State, District and Talukawise - Salient features of population statistics Gujarat for 2001 and 2011. Published by Directorate of Economics and Statistics, Govt. of Gujarat, Ghandhinagar.
Holloway, K., Niazi, Z and Rouse, R. (2017). Women’s economic empowerment through financial inclusion: A review of existing evidence and remaining knowledge gaps”. Financial Inclusion Program: Innovations for Poverty Action, March, 1–12.
ISHUP (2012). Interest subsidy for housing the urban poor scheme. National Housing Bank, RBI.
Kannan, K. (2007). Interrogating inclusive growth: Some reflections on exclusionary growth and prospects for inclusive development in India. The Indian Journal of Labour Economics. 50(1):17–46.
Kumar, N. (2011), “Financial Inclusion and its determinants: Evidence from state level empirical analysis in India”, https://www.scribd.com/document/90316556/Financial/Inclusion/and/Its/Determinants/Nitin.
Kumar, K. (2014). Financial inclusion progress and strategies for future growth in India. Elk Asia Pacific Journal of Finance and Risk Management. 5(3).
Kundu, A. and Sarangi, N. (2005). Issue of Urban Exclusion. Economic and Political Weekly. XL(33):3642–6.
Lanchovichina E. and Lundstrom, S. (2009). Inclusive growth analytics: Framework and Application. World Bank Policy Research Working Paper No. 4851. https://doi.org/10.1596/1813-9450-4851.
MHRD. (2016). Right to Education. Department of School Education and Literary, Ministry of Human Resource Department, Government of India.
Mukhopadhyay, J. and Kumar, L. (2013). Patterns of financial behaviour among rural and urban clients: Some evidence from Tamil Nadu. Working Paper, Institute for Money, Technology and Financial Inclusion. September.
Nayak, A. (2014). Financial Inclusion in Urban India. India Microfinance, July 17, http://indiamicrofinance.com/ financial-inclusion-urban-india.html.
Rangarajan Committee (2008). Report of the Committee on Financial Inclusion, Government of India.
Robino, C., Trivelli, C., Villanueva, C., Sachetti F., Walbey, H., Martinez, L. and Marincioni, M. (2019). Financial inclusion for women: A way forward. A policy area Social Cohesion and the State, G20 Insights, October.
Rupambara and H. Khan (2007). Financial inclusion of the urban poor: Issues and options. RBI, Cab Calling, July/September.
RBI. (2011). Guidelines for Identifying Census Centers. Reserve Bank of India, RBI documents.
RRY. (2013). Rajiv Rinn Yojana. Ministry of Urban Housing and Alleviation, Government of India, October.
Sato, Y. (2006). Urban Poverty, Women’s Empowerment and Grassroots Organization: A Sociological Study of Selected Slums in Ahmedabad. [A Thesis]. New Delhi, India: Jawaharlal Nehru University;
Shetty, S. and Deokar, B. (2014). Financial inclusion: Differences between the Government and RBI? Economic and Political Weekly. XLIX(35):12–5.
Sinha, A. (2012). Financial inclusion and urban cooperative banks. The Financial Inclusion Programme of Cosmos Bank, Pune, January 6.
State of Slums in India - A Statistical Compendium (2013). Ministry of Housing and Urban Poverty Alleviation, National Building Organization, Government of India.
United Nations. (2015). The World’s Women 2015: Trends and Statistics. United Nations, Department of Economic and Social Affairs, Statistics Division, Sales No. E.15. XVII.8.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.