A Project Report

On
A STUDY ON THE RURAL BANKING BEHAVIOR AMONGST
RURAL HOUSEHOLDS IN KHUTAR. SHAHJHANAPUR

Submitted for partial fulfilment of the requirements for the

award of the degree
Of
BACHELOR OF COMMERCE (HONORS)
BY

Mr. HARWINDER SINGH (1310100051)

Under the guidance of

MR. Tarun Gupta
ASSISTANT PROFESSOR
Department of Management
Invertis University, Bareilly.

INVERTIS UNIVERSITY, BAREILLY (U.P.)

SESSION 2015-16
CERTIFICATE
1

TO WHOM IT MAY CONCERN

This is to certify that Mr.HAWINDER SINGH of B.Com (H)-VI semester in our institute has
successfully completed his project work entitled A study on the rural banking behaviour
amongst rural households in Khutar,Shahjahanpur. for the partial fulfilment of degree of
bachelor of commerce (honours) for the session 2015-16.

Prof. Arpan Khastgir

(Director, Management)

Dr.RachnaSexenaMr.

Tarun Gupta

(HOD BBA&B.Com)

(Assistant Prof.)

AKNOWLEDGEMENT
The satiation and euphoric that accompany the successful completion of the task would not
be possible without the mention of the people who made it possible. After all, success is the
epitome of hard work, severance, undeterred missionary, zeal, steadfast, determination and
most of all encouraging guidance. So immense gratitude, I acknowledge all those guidance
and encouragement served as a Beacon Light and crowned my effort with success.

I am great thankful to my project guide MR.Tarun Gupta who helped me to complete this in
good manner and within the time period.

This project would not have been concluded successfully within the time without my fellow
colleagues and my family support and help.

EXECUTIVE SUMMARY
Financial inclusion, the purpose of this study is to understand the status of rural banking
facilities among the rural household in Khutar
From a study we can summarise that around 78% respondents are male having there bank
account where only 22% female, on the basis of economic status respondents are classified as
APL 63% and BPL 37%. Among religionwise 49% Hindu, 33% Sikh and 18% Muslims
respondents have their own bank account.
Most of the rural household go to the bank as and when required, In order to study the
impact of opening bank account 68% have saved after opening of the bank account and 32%
respondent had not saved after bank account.
In this sampling 48% respondents had said that there credit demand decrease where as 52%
respondents had said that there is no impact on credit demand decrease after financial
inclusion.
There 18% respondents borrow credit for the income generation, 3% for the business
expansion, 20% for the agriculture and allied, 20% for the repay the loan, 14% for the
education, 17% for the health, 3% for the assets, 3% for the death and other 2% for the
other specify.
In the random sampling 49% respondents are between 0 to 5, 13% respondents belong to 6 to
10, 23% respondent between 11 to 15 and 15% are between1 6 to 20.
In the rural area (khutar)3% respondents are post graduate, 20% respondent are
illiterate,12% respondents belongs to primary, 18% respondents are basic, 27% respondents
are matric, 8% respondents are intermediate and 12% respondents are graduation.
Here 12% respondents save their money to repay old loan, 10% for invest in business, 18%
respondents save for education,13% for the health,5% for the marriage and 22% respondents
save for the asset, 3% for the vulnerability and other 17% for the other specify.
In this sampling 47% respondents are farmer, 25% respondents are labourer, 8% respondents
are govt. employee, 3% respondents are private emp and 17% respondents are in other
specify.

TABLE OF CONTENT

SERIAL
NO:

TITLE:

PAGE NO:

CERTIFICATE

02

ACKNOWLEDGMENT

03

EXCECUTIVE SUMMARY

04

4.

LIST OF TABLES

06

5.

LIST OF FIGURES

07

6.

CHAPTER 1- INTRODUCTION

08-13

7.

CHAPTER 2- LITERATURE REVIEW

14-20

8.

CHAPTER 3- RESEARCH OBJECTIVE, RESEARCH

DESIGN, METHODOLOGY
CHAPTER 4- DATA PRESENTATION & INTERPRETATION

21-23

9.

24-45

10.

CHAPTER 5- RESEARCH FINDINGS

46

11.

CONCLUSION

49

12.

BIBLIOGRAPHY

50

13.

APPENDIXES

51-54

LIST OF TABLES
SERIAL
NO:

TITLE:

PAGE NO:

1.

Table. 4.1 Gender

24

2.

Table .4.2 Age of family head

25

3.

Table .4.3 Marital status

26

4.

Table .4.4 Education of family head

27

5.

Table .4.5 Occupation

28

6.

Table .4.6 No of family member

29

7.

Table .4.7 Economical status

30

8.

Table .4.8 Religion

31

9.

Table .4.9 Category

32

10.

Table .4.10 Land size

33

11.

Table .4.11 Reason for opening of bank account

34

12.

Table .4.12 Visits to bank

35

13.

Table .4.13 Reason for saving

36

14.

Table .4.14 Saved after opening of bank account

37

15.

Table .4.15 Saving option

38

16.

Table .4.16 Reason of Borrow credit

39

17.

Table .4.17 Credit demand after finance inclusion

40

18.

Table.4.18 Loan after opening of bank account

41

19.

Table.4.19 Borrowing option

42

20.

Table.4.20 Credit card

43

21.

Table .4.21 Participation in other

44

22.

Table .4.22 Satisfaction

45

23.

Table .5.1.1 OBSERVED FREQUENCY

47

24.

Table .5.1.2EXPECTED FREQUENCY

47

25.

Table.5.2.1 OBSERVED FREQUENCY

48

26.

Table.5.2.2EXPECTED FREQUENCY

48

LIST OF FIGURES
SERIAL
NO:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

TITLE

PAGE
NO:

FIG. 4.1 Gander

FIG.4.2 Age of family head
FIG .4.3 Marital status
FIG.4.4 Education of family head
FIG .4.5 Occupation
FIG.4.6 No of family member
FIG .4.7 Economical status
FIG .4.8 Religion
FIG .4.9 Category
FIG .4.10 Land size

24
25
26
27
28
29
30
31
32
33

11.
12.

FIG.4.11 Reason for opening of bank account

FIG.4.12 Visits to bank

34
35

13.
14.
15.
16.

FIG .4.13 Reason for saving

FIG 4.14 Saved after opening of bank account
FIG.4.15 Saving option
FIG .4.16 Reason of Borrow credit

36
37
38
39

17.
18.
19.
20.
21.
22.

FIG.4.17 Credit demand after finance inclusion

FIG.4.18 Loan after opening of bank account
FIG.4.19 Borrowing option
FIG.4.20 Credit card
FIG .4.21 Participation in other
FIG .4.22 Satisfaction

40
41
42
43
44
45

CHAPTER I:Introduction
A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also nonbanking
institutions that provide certain banking services without meeting the legal definition of a
bank. Banks are a subset of the financial services industry.
A banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transactions of their accounts and
7

portfolios, throughout the day. The banking system in India, should not only be hassle free
but it should be able to meet the new challenges posed by the technology and any other
external and internal factors. For the past three decades, Indias banking system has several
outstanding achievements to its credit. The Banks are the main participants of the financial
system in India. The Banking sector offers several facilities and opportunities to their
customers. All the banks safeguards the money and valuables and provide loans, credit, and
payment services, such as checking accounts, money orders, and cashiers cheques. The
banks also offer investment and insurance products. As a variety of models for cooperation
and integration among finance industries have emerged, some of the traditional distinctions
between banks, insurance companies, and securities firms have diminished. In spite of these
changes, banks continue to maintain and perform their primary roleaccepting deposits and
lending funds from these deposits.
The first bank of limited liability managed by Indians was Oudh Commercial Bank founded
in 1881. Punjab National Bank was established in 1894. Swadeshi movement, which began in
1906, encouraged the formation of a number of commercial banks. Banking crisis during
1913 -1917 and failure of 588 banks in various States during the decade ended 1949
underlined the need for regulating and controlling commercial banks. The Banking
Companies Act was passed in February1949, which was subsequently amended to read as
Banking Regulation Act, 1949.This Act provided the legal framework for regulation of the
banking system by RBI. The largest bank - Imperial Bank of India - was taken over by the
RBI in 1955 and rechristened as State Bank of India, followed by inclusion of its 7 Associate
Banks in1959. At present SBI has five associate banks. With a view to bring commercial
banks into the mainstream of economic development with definite social obligations and
objectives, the Government issued an ordinance on 19 July 1969 acquiring ownership and
control of 14 major banks in the country. Six more commercial banks were nationalised from
15 April 1980.
Meaning of Bank is a lawful organization, which accepts deposits that can be withdrawn on
demand. It also lends money to individuals and business houses that need it.
A bank is a financial institution and a financial intermediary that accepts deposits and
channels those deposits into lending activities, either directly or through capital markets. A
bank connects customers that have capital deficits to customers with capital surpluses. Due to
their critical status within the financial system and the economy generally, banks are highly
regulated in most countries. They are generally subject to minimum capital requirements
8

which are based on an international set of capital standards, known as the Basel Accords.
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central
banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of
India, which, upon India's independence, became the State Bank of India in 1955. Structure
of Indian Banking As per Section 5(b) of the Banking Regulation Act 1949: Banking means
the accepting, for the purpose of lending or investment, of deposits of money from the public,
repayable on demand or otherwise, and withdral by cheque, draft, order or otherwise. All
banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are
scheduled banks. These banks comprise Scheduled Commercial Banks and Scheduled
Cooperative Banks. Scheduled Commercial Banks in India are categorized into five different
groups according to their ownership and / or nature of operation. These bank groups are: (i)
State Bank of India and its Associates, (ii) Nationalized Banks, (iii) Regional Rural Banks,
(iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks (in the private sector).
Besides the Nationalized banks (majority equity holding is with the Government), the State
Bank of India (SBI) (majority equity holding being with the Reserve Bank of India) and the
associate banks of SBI (majority holding being with State Bank of India), the commercial
banks comprise foreign and Indian private banks. While the State bank of India and its
associates, nationalized banks and Regional Rural Banks are constituted under respective
enactments of the Parliament, the private sector banks are banking companies as defined in
the Banking Regulation Act. These banks, along with regional rural banks, constitute the
public sector (state owned) banking system in India. The Public Sector Banks in India are
back bone of the Indian financial system. The cooperative credit institutions are broadly
classified into urban credit cooperatives and rural credit cooperatives. Scheduled Cooperative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.
Regional Rural Banks (RRBs) are state sponsored, regionally based and rural oriented
commercial banks. The Government of India promulgated the Regional Rural Banks
9

Ordinance on 26th September 1975, which was later replaced by the Regional Rural Bank
Act 1976. The preamble to the Act states the objective to develop rural economy by providing
credit and facilities for the development of agriculture, trade, commerce, industry and other
productive activities in the rural areas, particularly to small and marginal farmers, agricultural
laborers, artisans and small entrepreneurs.
Establishment
The Reserve Bank of India was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was
permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and
where policies are formulated.
Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully
owned by the Government of India.
Preamble
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank
as:
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing
monetary stability in India and generally to operate the currency and credit system of
the country to its advantage."
Main Functions
Monetary Authority:

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to

productive sectors.
Regulator and supervisor of the financial system:
10

Prescribes broad parameters of banking operations within which the country's banking
and financial system functions.

Objective: maintain public confidence in the system, protect depositors' interest and
provide cost-effective banking services to the public.
Manager of Foreign Exchange

Manages the Foreign Exchange Management Act, 1999.

Objective: to facilitate external trade and payment and promote orderly development
and maintenance of foreign exchange market in India.
Issuer of currency:

Issues and exchanges or destroys currency and coins not fit for circulation.

Objective: to give the public adequate quantity of supplies of currency notes and coins
and in good quality.
Developmental role

Performs a wide range of promotional functions to support national objectives.

Related Functions

Banker to the Government: performs merchant banking function for the central and
the state governments; also acts as their banker.

Banker to banks: maintains banking accounts of all scheduled banks.

Regional Rural Banks
Regional Rural Banks have been in existence for around 32 years in the Indian financial
scene. Inception of Regional Rural Banks may be seen as a unique experiment as well as
experience in improving the efficacy of rural credit delivery mechanism in India. Keeping in
view the local peculiarities, an effort was made to integrate commercial banking within the
11

broad policy framework towards social banking through joint shareholding of Central
Government, the Concerned State Governments and the Sponsoring Bank. The institution of
Regional Rural Banks (RRBs) was created to meet the excess demand for institutional credit
in the rural areas, particularly among the economically and socially marginalized sections.
Although the cooperative banks and the commercial banks had reasonable records in terms of
geographical coverage and disbursement of credit, in terms of population groups the
cooperative banks were dominated by the rural rich, while the commercial banks had a clear
urban bias. The Banking Commission (1972) recommended establishing an alternative
institution for rural credit and ultimately Government of India established Regional Rural
Banks a separate institution basically for rural credit on the basis of the recommendations
of the Working Group under the Chairmanship of Sh. M. Narashimham. In order to provide
access to low-cost banking facilities to the poor, the Narashimham Working Group (1975)
proposed the establishment of a new set of banks, as institutions which combine the local
feel and the familiarity with rural problems which the cooperatives possess and the degree of
business organization, ability to mobilize deposits, access to central money markets and
modernized outlook which the commercial banks have. Subsequently, the Regional Rural
Banks were setup through the promulgation of RRB Act of 1976. The RRBs Act, 1976
succinctly sums up this overall vision to sub-serve both the developmental and the
redistributive objectives. The RRBs were established with a view to developing the rural
economy by providing, for the purpose of development of agriculture, trade, commerce,
industry and other productive activities in the rural areas, credit and other facilities,
particularly to small and marginal farmers, agricultural laborers, artisans and small
entrepreneurs, and for matters connected therewith and incidental thereto.Regional Rural
Banks were supposed to evolve as specialized rural financial institutions for developing the
rural economy by providing credit to small and marginal farmers, agricultural labourers,
artisans and small entrepreneurs. Their equity is held by the Central Government, Concerned
State Government and the Sponsor Bank in the proportion of 50:15:35 respectively. The
mandates of these rural financial institutions were to: (a) take banking to the doorsteps of the
rural masses, particularly in areas without banking facilities; (b) make available cheaper
institutional credit to the weaker sections of society, who were to be the only clients of these
banks; (c) mobilize rural savings and canalize them for supportingproductive activities in the
rural areas; (d) generate employment opportunities in the rural areas.

12

13

CHAPTER II- REVIEW OF LITERATURE

FINANCIAL INCLUSION AND DEVELOPMENT
This role encapsulates the essence of renewed national focus on Financial Inclusion,
promoting financial education and literacy and making credit available to productive sectors
of the economy including the rural and MSME sector.
The Indian economy has changed since priority sector lending guidelines were conceived.
There is a need to reorient guidelines towards todays growth and inclusion agenda. As such,
an Internal Working Group was constituted by the Reserve Bank with the objective of
revisiting the existing priority sector lending guidelines and suggesting revised guidelines in
alignment with the national priorities as well as financial inclusion goals of the country. The
objectives also included suggesting ways on how to achieve the priority sector targets in the
most effective way as well as measures to be taken in case of under-achievement of the
priority sector targets.
The Working Group has focused on channelling credit to segments that get crowded out in
the absence of specific targets. These include small and marginal farmers, micro enterprises
and the weaker sections while broadening the scope to include other underserved categories
of national priority, such as agriculture infrastructure, social infrastructure, renewable energy,
exports and medium sized enterprises. The report is currently under examination of the
Reserve Bank.
Credit flow to priority sectors: Macro policy formulation to strengthen credit flow to the
priority sectors. Ensuring priority sector lending becomes a tool for banks for capturing
untapped business opportunities among the financially excluded sections of society.
Financial inclusion and financial literacy: Help expand Prime Ministers Jan DhanYojana
(PMJDY) to become a sustainable and scalable financial inclusion initiative.
Credit flow to MSME: Stepping up credit flow to micro, small and medium enterprises
(MSME) sector, rehabilitation of sick units through timely credit support.
Institutions: Strengthening institutional arrangements, such as, State Level Bankers
Committees (SLBCs), Lead bank scheme, etc., to facilitate achievement of above objectives.

14

RBI Branch Authorization Policy: In order to extend the banking network in unbanked
areas, general permission has been granted by Reserve Bank of India (RBI) to domestic
Scheduled Commercial Banks (other than Regional Rural Banks) to open branches/ mobile
branches/ Administrative Offices/CPCs (Service Branches), (i) in Tier 2 to Tier 6 centres
(with population up to 99,999) and (ii) in rural, semi-urban and urban centres of the NorthEastern States and Sikkim subject to reporting. RBI has advised banks that while preparing
their Annual Branch Expansion Plan (ABEP), the banks should allocate at least 25 percent of
the total number of branches proposed to be opened during a year in unbanked rural (Tier 5
and Tier 6) centres.
Expansion of BCA Network : Banks have been advised by DFS to extend banking services
to the entire geography of the country based on the concept of Sub Service Area (SSA)
comprising of 1000-1500 households. In case of North-East, Hilly States and sparsely
populated regions of other States banks may decide the households to be covered by each
Business Correspondent Agent (BCA) appropriately. In case of larger Gram Panchayats more
than one BCA could be appointed. In case of smaller Gram Panchayats more than one
contiguous Gram Panchayat, taking into consideration the geographical area, could be
assigned to each BCA.
Swabhimaan Scheme: Earlier, under the Swabhimaan campaign, the Banks were advised to
provide appropriate banking facilities to habitations having a population in excess of 2000 (as
per 2001 census) by March 2012. The banks identified approximately 74000 habitations
across the country having a population of over 2000 for providing banking facilities. As per
reports received from Banks, 74351 villages with population of above 2000 have been
covered with banking facilities either by branches; Business Correspondents, mobile banking
etc. by March 31, 2012.
Direct Benefit Transfer (DBT) and Direct Benefit Transfer for LPG (DBTL): The objective
of DBT Scheme is to ensure that money under various developmental schemes reaches
beneficiaries directly and without any delay. Banks play a key role in implementation of
DBT/DBTL and this involves four important steps, viz.
(i) Opening of accounts of all beneficiaries;
(ii) Seeding of bank accounts with Aadhaar numbers and uploading on the NPCI mapper;

15

(iii) Undertaking funds transfer using the National Automated Clearing House - Aadhaar
Payment Bridge System (NACH-APBS).
(iv) Strengthening of banking infrastructure to enable beneficiary to withdraw money.
(i) Direct Benefit Transfer (DBT): The scheme was launched in the country from January,
2013 and was rolled out in a phased manner, starting with 25 welfare schemes, in 43 districts
and extended to additional 78 districts and additional 3 schemes from 1st July, 2013.
Presently DBT in 35 schemes have been expanded across the entire country.
(ii) Direct Benefit Transfer for LPG (DBTL) : The Direct Benefit Transfer for LPG
(DBTL) scheme was rolled out in 291 districts in the country from 1st June 2013 in six
phases. While preliminary results indicated that the scheme met its primary objectives of
curbing leakages in the distribution system, the speed at which it was rolled out and inclusion
of low Aadhaar districts gave rise to consumer grievances. The Government of India took
cognisance of the grievances and directed that the scheme be held in abeyance and
constituted a Committee on 7th March, 2014 under the chairmanship of Dr. S.G. Dhande,
Former Director, IIT, Kanpur to review the scheme and submit its report to the Government
of India after consultation with the stakeholders.
The Committee examined the functioning of the DBTL scheme in depth by meeting all
stakeholders and after a detailed study of the scheme design, architecture and implementation
structure, audit reports, consumer feedback and interactions with the stakeholders strongly
recommended that DBTL scheme should be recommenced as it is a very efficient way to
disburse subsidies. The Committee recognizes that although the scheme design is indeed very
robust and scalable which prevent leakages, it has suggested several systemic changes and
enhancements to mitigate the hardships reported by the LPG consumers.
Union Cabinet in its meeting held on 18.10.2014 decided to re-launch of Modified Direct
Benefit Transfer for LPG Consumers (DBTL) PAHAL Scheme from 15.11.2014 in 54
districts and in the entire country from 1.1.2015.
RuPay Card:RuPay, a new card payment scheme has been conceived by NPCI to offer a
domestic, open-loop, multilateral card payment system which will allow all Indian banks and
financial Institutions in India to participate in electronic payments. The card has been
dedicated to the nation by the President of India on May 08, 2014. RuPaysymbolizes the
capabilities of banking industry in India to build a card payment network at much lower and
16

affordable costs to the Indian banks so that dependency on international card scheme is
minimized. This is in line with many of the large emerging nations like China which have
their own domestic card payment system. Government of India has directed banks to issue
Debit cards to all KCC and DBT beneficiaries and that every new account holder should be
issued a debit card. A low cost option such as RuPaywill help in achieving this objective and
consequently help in fulfilling the objective of financial inclusion. The RuPayCard works on
ATM, Point of Sale terminals, & online purchases and is therefore not only at par with any
other card scheme in the world but also provides the customers with the flexibility of
payment options.
USSD Based Mobile Banking : The Department through National Payments Corporation of
India (NPCI) worked upon a Common USSD Platform for all Banks and Telcos who wish
to offer the facility of Mobile Banking using Unstructured Supplementary Service Data
(USSD) based Mobile Banking. The Department helped NPCI to get a common USSD Code
*99# for all Telcos. USSD based Mobile Banking offers basic Banking facilities like Money
Transfer, Bill Payments, Balance Enquiries, Merchant payments etc. on a simple GSM
(Global System for Mobile Communications) based Mobile phone, without the need to
download application on a Phone as required at present in the IMPS (Immediate Payment
Service) based Mobile Banking.
Transactions can be performed on basic phone handsets. The user needs to approach his bank
and get his mobile number registered. The bank will issue an MPIN (Mobile PIN) to the user.
The user thereafter needs to dial *99# and the menu for using USSD opens. Thereafter
customer has to follow selections on the menu to complete the transaction.
Pradhan Mantri Jan-DhanYojana (PMJDY)
Pradhan Mantri Jan-DhanYojana (PMJDY) was formally launched on 28th August, 2014. The
Yojana envisages universal access to banking facilities with at least one basic banking
account for every household, financial literacy, access to credit, insurance and pension. The
beneficiaries would get a RuPay Debit Card having inbuilt accident insurance cover of
Rs.1.00 lakh. In addition there is a life insurance cover of Rs.30000/- to those people who
opened their bank accounts for the first time between 15.08.2014 to 26.01.2015 and meet
other eligibility conditions of the Yojana.

17

PMJDY is different from the earlier financial inclusion programme (Swabhimaan) as it, interalia, seeks to provide universal access to banking services across the country and focuses on
coverage of all households (both rural and urban) while the earlier Financial Inclusion
Programme was limited to provide access point to villages with population greater than 2000.
Further, PMJDY focuses on interoperability of accounts which was not there earlier; has
simplified KYC guidelines and involves the Districts and States for monitoring and followup.
It has been clarified that existing account-holders need not open a new account to avail the
benefits under PMJDY. They can get the benefit of accident insurance by getting a RuPay
debit card issued and Overdraft limit by applying in the existing account. Further, it has also
been clarified that benefits of Rs.30, 000/- life insurance cover are available only to those
whose accounts are opened for the first time between 15.08.2014 to 26.01.2015.
Under PMJDY, banks were given target to carry out surveys in allocated Sub Service Areas
(SSAs) and Wards and to open accounts of all uncovered households by 26.01.2015. All the
States/Union Territories in the country have been mapped into 2,26,197 Sub-Service Areas
(in rural areas) and Wards (in urban areas) and out of total number of 21.22 crore surveyed
households, bank accounts have been opened for 99.99 % households.
PMJDY has been implemented by banks successfully. As against the estimated target of
opening 10 crore accounts, as on 28.10.2015, 19.02 crore accounts have been opened out of
which 11.58 crore accounts are in rural areas and 7.44 crore in urban areas. Deposits of Rs.
25913.55 crore have been mobilized. 16.37 CroreRepay Debit cards have been issued and
Aadhaar seeding has been done in 8.00 crore accounts.
Overdraft (OD) in PMJDY accounts: As on 30.10.2015, 22.43 lac accounts have been
sanctioned OD facility of which 8.37 lac account-holders have availed this facility involving
an amount of Rs. 11,824.97 lakh.
Insurance Claims settled:
(a) As on 30.10.2015, out of 669 claims lodged, 607 have been disposed off under accidental
insurance cover of Rs. 1 lakh under RuPay debit card.

18

(b) As on 30.10.2015, out of 1516 claim lodged, 1450 claims have been disposed off under
Life Cover of Rs.30,000/- to those beneficiaries who opened their accounts for the first time
from 15.08.2014 to 26.01.2015.
Financial inclusion, broadly understood as access to the formal financial sector for the marginalised and formal-finance deprived sections of society, has increasingly come to the forefront of public discourse in recent years. Policymakers all over the world are exploring ways
and means to ensure greater inclusion of the financially excluded segments of society. There
has been renewed global impetus to financial inclusion, particularly following the global
financial crisis in 2008. It is believed that financial inclusion could be welfare-enhancing and,
as a result, there is greater political support for the entire process.
In India, providing access to formal financial services and products has been a thrust of
banking policy for several decades. The current thinking at the global level has also had its
echo in India, with policymakers at various levels undertaking a wide range of measures to
include the excluded or the under-served within the fold of formal finance. Accordingly, the
Government and the Reserve Bank have undertaken a whole host of innovative and dedicated
measures to drive forward the financial inclusion agenda.
Against this backdrop, the Committee felt that it would be useful to take stock of the current
status of financial inclusion so as to better understand the kind of policy interventions that
could accelerate the process. Accordingly, in what follows, the extant evidence is carefully
analysed, focusing first on physical indicators such as branch network and accounts and,
subsequently, on financial indicators such as credit and deposits. The international experience
is dwelt upon, as appropriate and relevant. In order to keep the discussion contextual, the
focus is on the more recent period, i.e., the period from 2006 onwards, because several
previous Committees have already extensively documented Indias financial inclusion
experience within a broader historical context (see Annex for a summary).
The big push towards financial inclusion in India has emanated from the Pradhan
MantriJanDhanYojana (PMJDY) in August 2014 and the Jan DhanAadhaar Mobile (JAM)
trinity articulated in the Governments Economic Survey 2014-15 as well as the special thrust
on financial inclusion by the Financial Stability and Development Council (FSDC) that
includes a Technical Group for dedicated attention to this issue. Thus, the inclusion drive has

19

gone beyond the confines of various financial regulators and assumed the character of a
broader national development policy goal.

NABARD:
Genesis
At the instance of Government of India Reserve Bank of India (RBI), constituted a committee
to review the arrangements for institutional credit for agriculture and rural development
(CRAFICARD) on 30 March 1979, under the Chairmanship of Shri B.Sivaraman, former
member of Planning Commission, Government of India to review the arrangements for
institutional credit for agriculture and rural development. The Committee, in its interim
report, submitted on 28 November 1979, felt the need for a new organizational device for
providing undivided attention, forceful direction and pointed focus to the credit problems
arising out of integrated rural development and recommended the formation of National Bank
for Agriculture and Rural Development(NABARD). The Parliament, through Act,61 of 1981,
approved the setting up of NABARD. The bank came into existence on 12 July 1982 by
transferring the agricultural credit functions of RBI and refinance functions of the then
Agricultural Refinance and Development Corporation (ARDC). NABARD was dedicated to
the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November
1982.
NABARD was set up with an initial capital of 100 crore. Consequent to the revision in the
composition of share capital between Government of India and RBI, the paid up capital as on
31 March 2015, stood at 5000 crore with Government of India holding 4,980 crore
(99.60%) and Reserve Bank of India 20.00 crore (0.40%).

20

CHAPTER III- RESEARCH OBJECTIVES AND RESEARCH

METHDOLOGY

Following are the main objectives of the research study.

1) To study the rural banking (Saving)behaviour pattern amongst rural households in

Khutar,Shahjahanpur.
2) To study the rural banking (Credit)behaviour pattern amongst rural households in
Khutar,Shahjahanpur/.
HYPOTHESIS 1.
1. NULL HYPOTHESIS (Ho):- THERE IS NO RELATIONSHIP BETWEEN RELIGION
AND SOURCE OF BORROW.
2. ALTERNATE HYPOTHESIS (H1):- THERE ISRELATIONSHIP BETWEEN RELIGION
AND SOURCE OF BORROW.
HYPOTHESIS 2.
1. NULL HYPOTHESIS (Ho):- THERE IS NO RELATIONSHIP BETWEEN
ECONOMICAL STATUS ANDSATISFTION WITH RURAL BANKING FACILIITIES.
2. ALTERNATE HYPOTHESIS (H1):- THERE IS RELATIONSHIP BETWEEN
ECONOMICAL STATUS ANDSATISFTION WITH RURAL BANKING FACILIITIES.
.

21

RESEARCH METHODOLOGY

Data Sources: In dealing with any real life problem, it is often found that data at hand
are inadequate, and hence, it becomes necessary to collect data that are appropriate. We
have chosen following methods:

a) Primary data: These are those data, which are collected afresh and for the first time, and
thus happen to be original in character. We have used the structured questioners.
b) Secondary data: These are those which have already been collected by someone else and
which have already been passed through the statistical process. We collect the data from the
sources like internet, published data etc.

Population of the study: This Study was conducted at Khutarshahjanapur.

Sampling Size: It is the total number of respondents targeted for collecting the data for

the research. We have taken sample size of 60 respondents for our research.
Sampling Technique: Random sampling technique is used in this research project.

RESEARCH PROCESS
Research is concerned with fact finding, analysis and evaluation which are a part of research
process which consist of the following steps-:

Formulation of research problem: the first step is the formulation of research

problem. Problems are selected on priority basis according to their

Importance, researchers interest and according to the feasibility of the research.

After the problem has been selected, it is defined operationally.

Literature survey: the researcher must have full literature literate knowledge on
the subject on the subject of his choice. Updated knowledge on the researcher topic
definitely helps what data and other materials are to be collected to properly define

the research problem

Data collection: at the third step, one has to decide about the method of data
collection. By this we mean, the techniques through which evidence or factual
information can be collected to test the hypothesis. The data can be collected from
primary and secondary sources.
22

Classification and tabulation: classification is the way of arranging the data

in different classes in order to give a define form and structure to the data collected.
The classified data may be arranged in tabular form in columns and rows.

Analysis and interpretation: diagrammatic presentation, graphs, charts,

mathematical, statistical tools etc. are used for analysis the collected data. Proper
analysis helps in developing, findings, suggestions and conclusion.

Interpretation of results: results may be interpreted into action

recommendations must be communicated to proper authority.

Conclusion and recommendation: the recommendation is made on the basis

of conclusions are drawn on the basis of interpretation.

Report writing: it is very important for both researcher and reader. It should be
in simple language.

CONCLUSION:Hence it is proved that "research is must concerned with proper

fact find, analysis and evaluation."

23

CHAPTER IV: DATA PRESENTATION AND

INTERPRETATION
A. GENDER
GENDER
MALE
FEMALE

NO.of respondent
47
13

Table. 4.1 Gender

Gender of family head

MALE

FEMALE

22%

78%

Fig 4.1 - GENDER

24

ANALYSIS: According to the above pie chart, 78% respondent of family head is male, 22%
family head are femaleB. Age of family head
Age of family head

No. respondent
41 to 60
61 to 80
81 to 100

8
43
9

Table. 4.2 Age

Age of family head

41 to 60

61 to 80

15%

81 to 100

13%

72%

Fig 4.2 - AGE

ANALYSIS: : Above pie chart shows that 13% respondents are between age group 41 to 60
0, And 72% respondents are between 61 to 80, 15% respondents are between age group 81 to
100.

25

C.Marital status of family head

Marital status of family head
Married
Unmarried
Other specify

NO.of respondent
50
5
5

Table. 4.3 Marital status

Marital status
Married

Unmarried

Other specify

8%
8%

83%

Fig 4.3 Marital status

ANALYSIS: According to the above pie chart, 83% respondents are married, 9%
respondents are unmarried and 8% respondents are in other specify..

26

D. Education of family head

Education of family head
Illiterate
Primary
Basic
Metric
Intermediate
Graduation
Post graduation

NO.of respondent
12
7
11
16
5
7
2
Table 4.4Education of family head

Education of family head

Illiterate

Primery

Basic

Intermediate

Graduation

Post gradution

12%

3%

Metric

20%

8%
12%
27%

18%

Fig 4.4Education of family head

ANALYSIS: Above pie chart depicts that 3% respondents are post graduate, 20%
respondent are illiterate,12% respondents belongs to primary, 18% respondents are basic,
27% respondents are matric, 8% respondents are intermediate and 12% respondents are
graduation.
27

E. Occupation
Occupation
Farmer
Labourer
Govt emp.
Private emp.
Other specify

NO.of respondent
28
15
5
2
10

Table. 4.5 Occupation

Occupation
Farmer

Labourer

Govt emp

Private emp

Other specify

17%
3%
47%

8%

25%

Fig. 4.5Occupation

ANALYSIS: According to research 47% respondents are farmer, 25% respondents are
labourer, 8% respondents are govt. employee, 3% respondents are private emp and 17%
respondents are in other specify.

28

F. NO.of family member

NO.of family member
0 to 5
6 to 10
11 to 15

NO.of respondent
2
49
9

Table. 4.6Number of family member

Number of family member

0 to 5

6 to 10

15%

11 to 15

3%

82%

Fig.4.6Number of family member

According to survey, 82% respondents are between 6 to 10 family member, 3% are between
0- 5, 15% are between 11-15.

29

G. Economic status
NO.of respondent
Economic status
APL
BPL

38
22

Table .4.7 Economic status

Economical status
APL

BPL

37%

63%

Fig. 4.7Economic status

ANALYSIS: Above pie chart shows that 63% respondents belong to AP L and 37% belong to
BPL.

30

H. Religion
Religion
Hindu
Muslim
Sikh

NO. of respondents
29
11
20
Table. 4.8Religion

Religion
HINDU

MUSLIM

SIKH

33%
48%

18%

Fig.4.8Religion

ANALYSIS: Above pie chart shows that 49% respondents belong HINDUS, 18% belong to
MUSLIM and 33% belong to SIKH

31

I. Category
Category
GEN
OBC
SC
ST

NO.of respondent
13
44
2
1

Table. 4.9 Category

Category
GEN

OBC

SC

ST

3% 2%
22%

73%

Fig. 4.9.Category

ANALYSIS: Above pie chart shows that 22% respondents are GEN, 73% are OBC and 3%
belongs to SC and other belongs to ST.

32

J. Land size
Land size
0 to 5
6 to 10
11 to 15
16 to 20

NO.of respondent
29
8
14
9
Table. 4.10Land size

Land size
0 to 5

6 to 10

11 to 15

16 to 20

15%

48%

23%

13%

Fig. 4.10 Land size

ANALYSIS: Above pie chart depicts that 49% respondents are between 0 to 5, 13%
respondents belong to 6 to 10, 23% respondent between 11 to 15 and 15% are between1 6 to
20.
33

1.1-Do you have bank A\C? If yes then reason.

Reasons for opening bank account
NO.of respondent
Bank promotion
3
Saving
26
Social prestige
0
Loan
12
Peer pressure
6
Govt remit
13
Table. 4.11Reason for opening of bank account

Reason for opening of bank account

Bank promotion

Saving

social prestige

loan

Peer pressure

Govt remittances

22%

10%

5%

43%

20%

FIG .4.11Reason for opening of bank account

34

ANALYSIS: According to research 5% respondents opening their account bank promotion,

43% for saving, 20% for loan, and 10% for peer pressure and 22% for their govt. remittances.

1.2 visits to bank

visits to bank
Daily
Weekly
Monthly
As and when required
Never

NO. of respondent
3
12
10
35
0
Table .4.12visits to bank

Visits to Bank
Daily

Weekly

As and when required

never

Monthy

5%
20%

58%
17%

Fig. 4.12visits to bank

35

ANALYSIS: According to the research 5% respondents visits to bank daily, 20%

respondents visit to bank weekly and 17% monthly and other 58% as and when required.

3. DO you save money? If Yes

Reason for saving
Repay old loan
To invest in business
Education
Health
Marriage
Assets purchases
Vulnerability
Other specify

NO.of respondent
7
6
11
8
3
13
2
10
Table. 4.13 Reason for saving

Reason for saving

repay old loan

TO invest in business

education

health

marriage

assets purchase

vulnerability

other specify

17%

12%
10%

3%

22%

18%
5% 13%

Fig.4.13Reason for saving

36

ANALYSIS: Above pie chart depicts that 12% respondents save their money to repay old
loan, 10% for invest in business, 18% respondents save for education,13% for the health,5%
for the marriage and 22% respondents save for the asset, 3% for the vulnerability and other
17% for the other specify.
4. Have you saved after opening of bank account Y/N?
Saved after opening of account
YES
NO

NO. of Respondent

41
19
Table. 4.14Saved after opening of bank account

Saved after opening of bank account

yes

no

32%

68%

37

Fig.4.14Saved after opening of bank account

ANALYSIS: Above pie chart shows that 68% respondents have saved after opening of the
bank account and other 32% not saved after bank account.

5. Where do you save more?

Saving option
Only formal
Only informal
High formal
High informal
Both equal

NO.of respondent
23
8
8
9
12
Table. 4.15 Saving option

Saving option
only formal

only informal

high formal

high informal

both equal

20%
38%
15%

13%

13%

Fig. 4.15Saving option

38

ANALYSIS: Above pie chart shows that 39% respondents save their money in only formal,
13% in only informal, 13% respondents save their money in high formal, 15% in high
informal and other 20% respondents save their money in both.

6. DO you borrow credit? If Yes.

Reason of Borrow credit
Income generation
Business expansion
Agriculture and allied
Repay old loan
Education
Health
Marriage
Assets purchase
Death
Other specify

NO. of respondent
11
2
12
12
8
10
0
2
2
1
Table.4.16Reason of Borrow credit

Reason of Borrow credit.

Income generation

Business expention

Agriculture and alied

Repay old loan

Education

Health

Marriage

Assets purchase

Death

Other specify

3% 3% 2%
18%
17%
3%
13%

20%
20%

Fig.4.16Reason of Borrow credit

39

ANALYSIS: Above pie chart shows that 18% respondents borrow credit for the income
generation, 3% for the business expansion, 20% for the agriculture and allied, 20% for
the repay the loan, 14% for the education, 17% for the health, 3% for the assets, 3% for
the death and other 2% for the other specify.

40

7. Has your credit demand decreased from informal banking after financial
inclusion? Y/N
Credit demand finance inclusion
YES
NO

NO. of respondent

29
31
Table.4.17 Credit demand after finance inclusion

Credit demand after finance inclusion

YES

52%

NO

48%

Fig.4.17Credit demand after finance inclusion

ANANLYSIS: According to the research there 48% respondents asking that there credit
demand decreased from informal banking after financial inclusion, 52% asking credit demand
not decreased from informal banking after financial inclusion.

41

8. Have you ever took a loan after opening a bank account Y/N
Loan after opening of bank account
NO. of respondent
YES
42
NO
18
Table.4.18Loan after opening of bank account

loan after opening a bank account

YES

NO

30%

70%

Fig.4.18loan after opening of bank account

ANANLYSIS: According to the research 70% respondents have took a loan after opening a
bank account , 30% respondents have not took a loan after opening a bank account .

42

9. From where do you borrow credit?

Borrow options
Only formal
Only informal
High formal
High informal
Both equal

NO. of respondent
17
6
11
8
18
Table.4.19 Borrow options

Borrow options
only formal

only informal

high formal

high informal

both equal

28%

30%

10%

13%
18%

Fig.
4.19 Borrow options

ANANLYSIS: According to the research 28% respondents are borrowing from only formal,
10% from only informal, 18% from high formal, 14% from high informal and other 30%
respondents borrow from both.

43

10. Do you have credit card? If Yes: 1) KCC 2) GCC 3) No

Credit card
KCC
GCC
NO

NO. of respondent
30
0
30
Table. 4.20 Credit card

Credit card
KCC

50%

GCC

NO

50%

Fig. 4.20 Credit card

ANALYSIS: Above pie chart shows that 50% respondents have KCC and 50% have not any
credit card.

44

11. Do you ever participate in 1) Insurances 2) Pension scheme 3) Mutual

fund4) No
NO.of respondent
Participation in other
Insurances
Pension scheme
Mutual fund
NO

25
15
4
16
Table. 4.21Participation in other

Participation in other
Insurances

Pension scheme

Mutual

No

27%
42%
7%

25%

Fig.4.21Participation in other

ANALYSIS: Above pie chart depicts that 41% respondents have participate in insurances,
25% pension scheme, 7% in mutual fund and 27% respondents never participate.

45

12. Are you satisfied with rural banking facilities? Y/N.

Satisfaction
YES
NO

NO.of respondent
47
13
Table.4.22Satisfaction

Satisfaction.
YES

NO

22%

78%

Fig. 4.22 Satisfaction

ANALYSIS: Above pie chart shows that 78% respondents are satisfied with rural banking
facilities and other 22% are not satisfied with rural banking facilities

46

CHAPTER V: RESEARCH FINDINGS

1. According to research 5% respondents opening their account bank promotion, 43% for
saving, 20% for loan, 10% for peer pressure and 22% for their govt. remittances.
2.According to the research 5% respondents visits to bank daily, 20% respondents visit to
bank weekly and 17% monthly and other 58% as and when required
3.According to the research 12% respondents save their money to repay old loan, 10% for
invest in business, 18% respondents save for education,13% for the health,5% for the
marriage and 22% respondents save for the asset, 3% for the vulnerability and other 17%
for the other specify.
4.According to the research that 68% respondents have saved after opening of the bank
account and other 32% not saved after bank account.
5.According to the research 39% respondents save their money in only formal, 13% in only
informal, 13% respondents save their money in high formal, 15% in high informal and other
20% respondents save their money in both.
6.According to the research 18% respondents borrow credit for the income generation, 3%

for the business expansion, 20% for the agriculture and allied, 20% for the repay the loan,
14% for the education, 17% for the health, 3% for the assets, 3% for the death and other
2% for the other specify.
7.According to the research 48% respondents asking that there credit demand decreased from
informal banking after financial inclusion, 52% asking credit demand not decreased from
informal banking after financial inclusion.
8.According to the research 70% respondents have took a loan after opening a bank account

, 30% respondents have not took a loan after opening a bank account .
9.According to the research 28% respondents are borrowing from only formal, 10% from
only informal, 18% from high formal, 14% from high informal and other 30% respondents
borrow from both.
10.According to the research 50% respondents have KCC and 50% have not any credit card.
11.According to the research 41% respondents have participate in insurances, 25% pension

scheme, 7% in mutual fund and 27% respondents never participate.

12.According to the research 78% respondents are satisfied with rural banking facilities and
other 22% are not satisfied with rural banking facilities

47

HYPOTHESIS 1.
OBSERVED FREQUENCY

religion
Hindu
Muslim
Sikh
Column
total

only
only
high
high
formal
informal formal
informal
10
4
5
3
1
3
4
1
3
17
6
11

both
equal
1
4
3
8

9
0
9
18

Row
total
29
11
20
60

Table no.5.1.1 OBSERVED FREQUENCY

EXPECTED FREQUENCY
Religion
Hindu
Muslim
Sikh
Column
total

only
formal
8
3
6
17

only
high
high
informal formal
informal
3
5
1
2
2
4
6
11

both
equal
4
1
3
8

9
3
6
18

Row
total
29
11
20
60

Table.5.1.2EXPECTED FREQUENCY

Since the P-value (0.09) is biger than the significance level (0.05), we are accepting the null
hypothesis. Thus we conclude that there isno relationship between religion and source of
borrow

48

HYPOTHESIS 2
OBSERVED FREQUENCY

Economic
status

Yes

APL
BPL
Column total

no
28
19
47

Row total
10
3
13

38
22
60

Table .5.2.1OBSERVED FREQUENCY

EXPECTED FREQUENCY

Economic
Status

Yes

Apl
Bpl
Column total

no
30
17
47

Row total
8
5
13

38
22
60

Table.5.2.2EXPECTED FREQUENCY

Since the P-value (0.3) is biger than the significance level (0.05), we are accepting the null
hypothesis. Thus we conclude that there isno relationship between economic status and
satisfaction with rural banking services

49

CONCLUSION
Rural banking plays a very impotant role in tranforming rural india. By providing banking
faciltities to rural households especially saving and credit have enchanced their life. But still
a lot has to done on the side of rural banking so that every individual rural households can be
benefitted. Recently the PMJDY , MUDRA and PMBY initatives taken up by the government
of india , RBI and NABARD for the betterment of their financial and social security needs. In
order to avail the benefits of rural banking reserve bank of india had taken several initatives
such as BC / BF model , USB branch , SHG funding and many more. The major factors
which are creating obstacles to the rural banking from rural households are too much
documentation, time consuming process , collateral issue and the lack of awareness regarding
the financial products. Hence in order to avail the benefits of financial inclusion government
should make several changes such as customized products , arrangement of funds

RESEARCH SCOPE
Since the current study is limited to data collected from village areas only, But the study can
be extended to rural areas also. The further scope of the study is that a comparison between
the Indian banks and banks of foreign countries can also be done using same conceptual
model. The time period of collecting secondary data can be extended from 3 years to 5 years
or more.

LIMITATIONS
There can be many interpretations and explanations to the data collected. This is an empirical
study and the research provides the explanation as understood by the researcher only.
The secondary data is collected for the period 2016 therefore more evidence may be needed
to generalize the results.
There is Difficulties in Deposit Mobilisation

Procedural Rigidities

50

BIBLIOGRAPHY
1)

www.rbi.org.in- Reserve bank of India

2)

Www. finmin.nic.in- Ministry of finance

3) www.nabard.org
.
4) www.pmjdy.gov.in

5) Ahmed, R. (1998). Rural Banking and Economic Development, Mittal

Publications,
6) Akhavein, J.D., Berger, A.N., Humphrey, D.B. (1997): The Effects of
Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function,
Finance and Economic Discussion Series 9, Board of Governors of the Federal
Reserve System.
7)Alagawadi, M. V. And Pushpa M. Savadatti, (2009) Performance Evaluation
Of Malaprabha Grameen Bank In Karnataka During Pre And Post WTO Period
Principal Component Analysis.
8)Amin, S., Rai, A. S. And G. Topa. 2003. Does Microcredit Reach The Poor And
Vulnerable? Evidence From Northern Bangladesh. Journal Of Development
Economics 70(1): 59-82.
9) Ansari, (Md). A. (1998). Working of RRBs in Eastern UP, Anmol Publication.
10) Aparna K, (2011)Amalgamation And Deccan Grameena Bank

51

APPENDICES
A STUDY ON THE RURAL BANKING BEHAVIOR AMONGST
RURAL HOUSEHOLDS IN KHUTAR. SHAHJHANAPUR

Name
Village name
District

code
Block

Gender of family head -1:Male,2:Female

Age of family head:
Marital status of family head-1:Married,2:Unmarried,3:Other specify
Education of family head-1:Illiterate,2:Primary,3:Basic ,
4:Metric,5:Intermediate,6:Graduation,7:Postgraduation
Occupation-1:Farmer,2:Labourer,3:Goverenmental Employ,4:Private Servent,5:Other
specify
Number of family member
Economic status-1:APL ,2:BPL
Religion-1:Hindu,2:Muslim,3:Sikh,4:Christen,5:other specify
Category -1:Gen,2:OBC,3:SC,4:ST
Land size ..

1-Do you have bank A\C? (1) Yes, (2) No

If no-1:Dont have documents ,2:Insufficient income ,3:Branch is far
away,4:Bank emp beh,5:Time consuming,6:Dont know banking
operations ,7:Other specify
If yes .how old is your bank account ?Mention Years :
(Year of
opening)
type -1:SB,2:CA,3:LA
Reason for opening bank a/c(Motives for participation):1 :Bank
promotion,2 :Saving , 3:Social prestige,4:Loan, 5:Peer pressure,6:Govt
remittances
Visits to bank -1: Daily, 2: Weekly,3: Monthly,4: As and when required,5: Never
If never (5)-1: No need 2: Distance, 3: Time, 4: Fees and exp, 5: Operation problem,
6: Other specify.
2- No.of bank A\C of other family member-male . Female ..
3.

DO you save money? Yes/NO

If Yes: Purpose: 1: Repay old loans, 2: TO invest in business, 3: Education, 4: Health,

52

5: Marriage, 6: Assets Purchase, 7: Vulnerability, 8: Other Specify

If No: Reason: 1: Use A/C only for govt. remittances, 2: Insufficient income, 3: Branch is far
away 4: Bank employee beh. 5:Dont know banking operation, 6: Time consuming, 7: other
specify
Saving-Post financial inclusion status:

4. Have you saved after opening of bank account/N?

If no, why specify reason:
5. Where do you save more?
1. Only formal

2.Only informal

3. High formal

4 High informal

5 Both equal

6. DO you borrow credit? Yes/NO

If Yes-Propose. 1:Income generation, 2: Business expansion, 3:Agriculture And Allied ,
4:Repay old loans, 5:Education, 6:Health, 7:marriage, 8:Assets Purchases, 9:Death, 10:Other
specify
If No-Reason .1: No need for a loan, 2: need a loan but worried about repayment capacity, 3:
Need a loan but interest rate are high.
Post financial inclusion status:
7. Has your credit demand decreased from informal banking after financial inclusion? Y/N

8. Have you ever took a loan after opening a bank account Y/N
If YES:
53

(1) No. of credit taken -----(2) Purpose of credit ..

9. From where do you borrow credit?

(1). only formal

(2).Only informal

(3).High formal

(4).High informal

(5). both equal

10. Do you have credit card? If Yes: 1) KCC 2) GCC 3) No

If yes, write down the purpose of using Credit card
If No, why dont you have credit card.

11. Do you ever participate in 1 ) Insurances 2 ) Pension scheme 3 ) Mutual fund. Y/N
If No, why.

12. Are you satisfied with rural banking facilities? Y/N.

If No, why

54