Contents

SL NO Topic Page No
Chapter 1 Introduction
Chapter 2 Profile of the Organisation
Chapter 3 Review of Literature
Chapter 4 Objectives of Study
Chapter 5 Data Analysis
Chapter 6 Summary of Findings
Chapter 7 Conclusion & Suggestions

Tables

SL No Topic Page No
1 Gender
2 Family Income
3 Education Level
4 Loan Awareness
5 Internet Banking Awareness
6 Mobile Banking Awareness
7 Credit Card Awareness
8 Debit Card Awareness
9 Mortgage Awareness
10 Deposits / Withdrawal Awareness
11 Chequebook Awareness
12 Overdraft Awareness
13 Insurance Awareness
14 ATM Awareness
15 Account Type
16 Family Income & Account Type are Independent
17 Education & Account Type are Independent
18 Awareness of Respondents

1
 Graph

SL No Topic Page No
1 Gender
2 Family Income
3 Education Level
4 Loan Awareness
5 Internet Banking Awareness
6 Mobile Banking Awareness
7 Credit Card Awareness
8 Debit Card Awareness
9 Mortgage Awareness
10 Deposits / Withdrawal Awareness
11 Chequebook Awareness
12 Overdraft Awareness
13 Insurance Awareness
14 ATM Awareness
15 Account Type

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 CHAPTER-1

INTRODUCTION

Financial inclusion is the delivery of financial services at affordable costs to vast

sections of Disadvantaged and low income groups. Unrestrained access to public goods and
services is the sine quanon of an open and efficient society. It is argued that 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
public policy. The term "financial inclusion" has gained importance since the early 2000s,
and is a result of findings about financial and its direct correlation to poverty. Financial
inclusion is now a common objective for many central banks among the developing nations.
India occupies only 2.4 per cent of the world's land area but supports over 16 per cent
of the world's population. About 70 per cent of the Indian population lives in villages. There
are divergent demographic patterns, living standards, education levels and income levels as
parameters of economic development. The rural India is yet to see the light of development
and the results of planning process. The divide between the rich and poor is wide. On one
hand, due to liberalization, privatization and globalization of Indian economy, there are sea
changes in the banking field. While on the other hand, besides profit, social responsibility is
also one of the prime agenda of commercial banks. The fact remains that the country cannot
progress unless and until the basic infrastructure facilities reach to eachand every citizen of
the country. One of the important purposes of Indian planning is socialism and upliftment of
poor. The downtrodden and poverty ridden mass has been excluded socially and financially
even in independent India when planning and development process was basically meant for
them. They should have been the beneficiaries of development.

IMPORTANCE OF FINANCIAL INCLUSION IN INDIA

1. Creating a platform for inculcating the habit to save money

The lower income category has been living under the constant shadow of financial
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

3
 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 programmes

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 government’s subsidy bill (as it
shall save that part of the subsidy that is leaked) and provide relief only to the real
beneficiaries. All these efforts require an efficient and affordable banking system that
can reach out to all. Therefore, there has been a push for financial inclusion.

4
Institutions and Financial inclusion

Financial Institutions, both large and small have an important role to play in financial
inclusion. With their organized structure and effective management larger financial
institutions could act as mentors for small financial services firm by ensuring a strong
financial backing.

1. COMMERCIAL BANKS: Commercial banks could act as an important part of the

process to achieve full financial inclusion. Especially with simplified savings bank
accounts (including no-frills account), relaxed KYC procedures, primary sector
lending and even microfinance.

2. COOPERATIVE BANKS: The Urban and Rural cooperative banks could cater to
populations that are generally neglected by the commercial banks. Their position
allows them to reach out to the people far easier than the more formal commercial
banks. Since they are operated by the members of the banks themselves, there would
be more involvement from the people of such cooperatives.

3. REGIONAL RURAL BANKS: Through priority sector lending, KCCs and GCCS
the RRBs could ensure a steady flow of credit to the rural poor especially the
marginal farmers. The RRBs like the commercial banks can deal with the agencies
like NGOs who are interested in helping out the poor and the weaker sections.

4. NON-BANKING FINANCIAL COMPANIES (NBFCS): The NBFCs could

include both large and small financial firms which provide financial services. They
could offer specific financial products to the poor and low income people such as
micro-insurance, micro-credit, etc. The NBFCs could create financial awareness
among the people by not only offering alternative financial services but also spreading
financial literacy by providing financial advices.

5. MICRO FINANCE INSTITUTIONS (MFIS): Micro Finance Institutions or

MFIs are created with the specific aim of extending financial services to the poor and
the weaker sections of the populations. A MFI could be independent or as in most
cases are promoted by NGOs, government agencies, NBFCs, commercial banks and
other institutions. Micro Finance Institutions have so far been the most successful at
ensuring basic financial services to the unbanked sections of the populations. Along

5
 with the SHG movement, the MFIs has enabled the wealth generation in many
underdeveloped rural as well as neglected urban areas in India.

6. POST OFFICE SAVINGS BANK: These along with their extensive network
could offer wide variety of small and micro financial services to the people. The Post
Office Savings bank could utilise their staff to deliver door-to-door service to the
people.

7. NON-GOVERNMENTAL ORGANIZATIONS (NGOS): NGOs could provide

financial assistance to the poor and the weaker sections through NGO promoted MFIs
or by providing financial advice. NGOs working the poor and the economically
deprived can more closely analyse their spending patterns and credit requirements.
Commercial banks and other large financial agencies can work closely with NGOs to
ensure that the dealings with the poor and the weaker sections turn out to be a fruitful
activity not only for the people but also for the lending agencies.

THE SCOPE OF FINANCIAL INCLUSION

The scope of financial inclusion can be expanded in two ways.

1. Through state-driven intervention by way of statutory enactments ( for instance the

US example, the Community Reinvestment Act and making it a statutory right to have
bank account in France).

2. Through voluntary effort by the banking community itself for evolving various
strategies to bring within the ambit of the banking sector the large strata of society.

When bankers do not give the desired attention to certain areas, the regulators have to
step in to remedy the situation. This is the reason why Reserve Bank of India is
placing a lot of emphasis on financial inclusion.

In India the focus of the financial inclusion at present is confined to ensuring a bare
minimum access to a savings bank account without frills, to all. Internationally, the
financial exclusion has been viewed in a much wider perspective. Having a current
account / saving account on its own, is not regarded as an accurate indicator of
financial inclusion. There could be multiple levels of financial inclusion and
exclusion. At one extreme, it is possible to identify the ‘super-included’, i.e., those

6
 customers who are actively and persistently courted by the financial services industry,
and who have at their disposal a wide range of financial services and products. At the
other extreme, we may have the financially excluded, who are denied access to even
the most basic of financial products. In between are those who use the banking
services only for deposits and withdrawals of money. But these persons may have
only restricted access to the financial system, and may not enjoy the flexibility of
access offered to more affluent customers.

RBI AND FINANCIAL INCLUSION

As the central bank of the country, the Reserve bank of India has taken steps to ensure
financial inclusion in the country. It has tried to make banking more attractive to citizens by
allowing for easier transactions with banks. In 2004 RBI appointed an internal group to look
into ways to improve Financial Inclusion in the country. It came out with a report in 2005
(Khan Committee) and subsequently RBI issued a circular in 2006 allowing the use of
intermediaries for providing banking and financial services. Through such policies the RBI
has tried to improve Financial Inclusion. Financial Inclusion offers immense potential not
only for banks but for other businesses. Through an integrated approach the businesses, the
NGOs, the government agencies as well as the banks can be partners in growth. RBI has
realized that a push is needed to kick start the financial inclusion process. Some of the steps
taken by RBI include the directive to banks to offer No-frills account, easier KYC norms,
offering GCC cards to the poor, better customer services, promoting the use of IT and
intermediaries, and asking SLBCs and UTLBCs to start a campaign to promote financial
inclusion on a pilot basis. So far the campaign for 100% financial inclusion has been said to
be a success with many states now reaching near-total financial inclusion.

Policy initiatives by reserve bank of India

Keeping in view the tremendous scope for improving financial coverage, the RBI as a
proactive measure, has taken several initiatives to promote financial inclusion:

1. No-frills Accounts: The RBI in its annual policy statement for the year 2005-06 and
also in the mid term review of the policy (2005-06), exhorted the banks, with a view

7
 to achieving greater financial inclusion , to make available a basic banking “No-
Frills” account either with nil or very minimum balances as well as charges that
would make such accounts accessible to vast sections of the population. The nature
and number of transactions in such accounts would be restricted and made known of
transaction in such accounts would be restricted and made known to customers in
advance in a transparent manner. All banks have been urged to give wide publicity to
the facility of such “No-Frills” account. Banks are required to make available all
printed used by retail customers in the concerned regional language.
2. Simplification of KYC norms: In order to ensure that persons belonging to low
income group in urban and rural areas do not face difficulty in opening accounts has
been simplified for those persons with balances not exceeding rupees fifty thousand
rupees (Rs. 50,000) and credits in the accounts not exceeding rupees one lakh (Rs.
1,00,000) in a year.
3. Overdraft facilities in No-frill Accounts: RRBs have been specifically advised to
allow limited overdraft facilities in `No-frills` account without any collateral or
linkage to any purpose. The idea is that provision of such overdraft facility provides a
ready source of funding to the account holder who is thereby induced to open such
accounts.
4. One-Time Settlement: For all borrowers where the principal amount is less than
RS.25000/-, banks have been asked to offer a one-time settlement scheme. As there is
large number of such very small NFA s with banks, offer of such an OTS was
expected to restore borrowing relationship with the formal system and thereby obviate
the need to go back to the informal system. in case where the loans are under
government sponsored schemes the state level banker’s committee (SLBC) was
expected to evolve a suitable policy.
5. General purpose Credit Card: Banks have been advised by RBI to provide a
General purpose Credit Card (GCC) facility at their rural and semi urban branches.
The credit facility extended under the scheme will be in the nature of revolving credit.
The GCC-holder will be entitled to draw cash from the specified branch of bank up to
the limit sanctioned. Banks would have flexibility in fixing the limit based on the
assessment of income and cash flow of the entire houdehold, without insistence on
security or purpose.however, the total credit facility under GCC for an individual
should not exceed RS. 25,000/- . it is expected that banks will come out with their
own schemes to popularise this product amongst the rural client.

8
6. Business Facilitators and correspondents: with the objective of ensuring greater
financial inclusion and increasing the outreach of the banking sector, banks were
permitted to use the services of NGOS/ SHGs, MFIs and other civil society
Organisations as intermediaries in providing financial and banking services through
the use of business facilitator and correspondent models.
7. Broader definition of financial inclusion: RBI subsequently observed that a family
satisfying the following conditions also would be treated as financially included:
A. Member of SHG
B. Member of a PACS
C. If have a post office savings account
D. Member covered under govt schemes

9
 CHAPTER-2

PROFILE OF THE ORGANIZATION

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 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, India’s 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 safeguard the money and
valuables and provide loans, credit, and payment services, such as checking accounts, money
orders, and cashier’s 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 role—accepting deposits and lending funds from these deposits.

BANKING INDUSTRY

The Banking Industry was once a simple and reliable business that took deposits from
investors at a lower interest rate and loaned it out to borrowers at a higher rate. However
deregulation and technology led to a revolution in the Banking Industry that so it
transformed. Banks have become global industrial powerhouses that have created ever more
complex products that use risk and securitization in models. Through technology
development, banking services have become available 24 hours a day, 365 days a week,
through ATMs, and online banking, and in electronically enabled exchanges where
everything from stocks to currency futures contract can be traded.

10
The Banking Industry at its core provides access to credit. In the lenders case, this includes
access to their own savings and investments, and interest payments on those amounts. In the
case of borrowers, it includes access to longs for the creditworthy, at a competitive interest
rate.

Banking services include transactional services such as verification of account details,

account balance details and the transfer of funds, as well as advisory services that help
individuals and institutions to properly plan and manage their finances. Online banking
channels have become keys in the last 10 years. Mortgage banking has been encompassing
for the publicity or promotion of the various mortgage loans to investors as well as
individuals in the mortgage business. Online banking services have developed the banking
practices easier worldwide.

The collapse of the Banking Industry in the Financial Crisis, however, means that some of the
more extreme risk-taking and complex securitization activities that banks increasingly
engaged in since 2000 will be limited and carefully watched, to ensure that there is not
another banking system melt down in the future.

INDIAN BANKING INDUSTRY

The Indian Banking sector has witnessed wide ranging changes under the influence of the
financial sector reforms initiated during the early 1990s. The approach to such reforms in
India has been one of gradual and non-disruptive progress through a consultative process.
The emphasis has been on deregulation and opening up the banking sector to market forces.
The Reserve Bank has been consistently working towards the establishment of an enabling
regulatory framework with prompt and effective supervision as well as the development of
technological and institutional infrastructure. Persistent efforts have been made towards
adoption of international benchmarks as appropriate to Indian conditions. While certain
changes in the legal infrastructure are yet to be effected, the developments so far have
brought the Indian financial systems closer to global standards.

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 STRUCTURE OF BANKING INDUSTRY IN INDIA

Reserve Bank of India (RBI)

The reserve bank of India is a central bank and was established in April 1,
1935 in accordance with the provisions of reserve bank of India act 1934. The central
office of RBI is located at Mumbai since inception. Though originally the reserve
bank of India was privately owned, since nationalization in 1949, RBI is fully owned
by the Government of India. It was inaugurated with share capital of Rs. 5 Crores
divided into shares of Rs. 100 each fully paid up. RBI is governed by a central board
(headed by a governor) appointed by the central government of India. RBI has 22
regional offices across India. The reserve bank of India was nationalized in the year
1949. The general superintendence and direction of the bank is entrusted to central
board of directors of 20 members, the Governor and four deputy Governors, one
Governmental official from the ministry of Finance, ten nominated directors by the
government to give representation to important elements in the economic life of the
country, and the four nominated director by the Central Government to represent the
four local boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi.
Local Board consists of five members each central government appointed for a term

12
 of four years to represent territorial and economic interests and the interests of
cooperative and indigenous banks. The RBI Act 1934 was commenced on April 1,
1935. The Act, 1934 provides the statutory basis of the functioning of the bank.

The bank was constituted for the need of following: -

To regulate the issues of banknotes

To maintain reserves with a view to securing monetary stability

To operate the credit and currency system of the country to its advantage.

Scheduled & Non –scheduled Banks

A scheduled bank is a bank that is listed under the second schedule of the RBI Act, 1934. In
order to be included under this schedule of the RBI Act, banks have to fulfill certain
conditions such as having a paid up capital and reserves of at least 0.5 million and satisfying
the Reserve Bank that its affairs are not being conducted in a manner prejudicial to the
interests of its depositors. Scheduled banks are further classified into commercial and
cooperative banks. Non- scheduled banks are those which are not included in the second
schedule of the RBI Act, 1934. At present these are only three such banks in the country.

Commercial Banks

Commercial banks may be defined as, any banking organization that deals with the deposits
and loans of business organizations. Commercial banks issue bank checks and drafts, as well
as accept money on term deposits. Commercial banks also act as moneylenders, by way of
installment loans and overdrafts. Commercial banks also allow for a variety of deposit
accounts, such as checking, savings, and time deposit. These institutions are run to make a
profit and owned by a group of individuals.

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Types of Commercial Banks

 Public Sector Banks

These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

 Private Sector Banks

These are banks majority of share capital of the bank is held by private individuals. These
banks are registered as companies with limited liability. Examples of private sector banks are:
ICICI Bank, Axis bank, HDFC, etc.

 Foreign Banks

These banks are registered and have their headquarters in a foreign country but operate their
branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard
Chartered Bank, etc

 Regional Rural Banks

Regional Rural Banks were established under the provisions of an Ordinance promulgated on
the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient
institutional credit for agriculture and other rural sectors. The area of operation of RRBs is
limited to the area as notified by GoI covering one or more districts in the State.

RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27
scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is
shared by the owners in the proportion of 50%, 15% and 35% respectively.

 Cooperative Banks

A co-operative bank is a financial entity which belongs to its members, who are at the same
time the owners and the customers of their bank. Co-operative banks are often created by
persons belonging to the same local or professional community or sharing a common interest.

14
Co-operative banks generally provide their members with a wide range of banking and
financial services (loans, deposits, banking accounts, etc).

PORTERS FIVE FORCE ANALYSIS ON BANKING

Threat of substitute
For deposit substitute includes investment in gold, real estate, equity etc
For advances substitutes includes bonds, IPO/FPO etc

Bargaining power of suppliers

Largely customers prefer banks for its reliability.
Gradually, customers have hedged inflation by investing in other riskier avenues.

Competitive rivalry
At present public sector banks, led by SBI control 77.3 percent of banking sector.
Rivalry is much aggressive in metropolitan areas.
Issuing of new license will increase competitive rivalry in rural areas over medium to long
term.

Threat of new entry

High entry barriers, as RBI & central bank control the issuance of licenses.
New licenses may reduce market share of public banks.

Bargaining power of buyers

Nascent debt market & volatile stock market are less opted.
Banks are indispensible sources of fund in India.

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 SWOT ANALYSIS OF BANKING SECTOR

Strengths
 Source of employment and contribute to GDP
 Hedging of risk
 Connecting people
 Diversified services

Weaknesses
 Vulnerable to risk
 High NPA
 Haven’t penetrated the rural market
 Structural weaknesses

Opportunities
 Reaching the rural market(expansion)
 Changing socio and demographic factors
 Rise in private sector banks

Threats
 Recession
 Stability of the system
 competition

PESTEL ANALYSIS OF BANKING

Political factors
Government laws affect the state of the banking sector. The government can intervene in the
matters of banking whenever, leaving the industry susceptible to political influence. This
includes corruption amongst political parties, or specific legislative laws such as labor laws,
trade restrictions, tariffs, and political stability.

16
Economic factors
The banking industry and the economy are tied. How income flows, whether the economy is
prospering or barely surviving during times of recession, affects how much capital banks can
access. Spending habits, and the reasons behind them, affect when customers borrow or
spend funds at banks.

Socio cultural factors

Cultural influences, such as buying behaviors and necessities, affect how people see and use
banking options. People turn to banks for advice and assistance for loans related to business,
home, and academics. Consumers seek knowledge from bank tellers regarding saving
accounts, bank related credit cards, investments, and more.

Techonological factors
Technology is changing how consumers handle their funds. Many banks offer a mobile app
to witness accounts, transfer funds, and pay bills on smartphones.

Smartphones can scan cheques, and the bank can process it from their end, at their location.
This change helps to save paper and the need to drive directly to the branch to handle these
affairs.

Debit cards are also changing. Chips have been implemented, requiring users to insert their
card into debit machines rather than swiping them. Other countries, such as Canada, have
implemented a “tap” option — tapping the debit card onto the device, requiring no pin, for a
transaction to complete. These changes make it easier on the user to make purchases without
required intrusion from banks.

Even banks themselves are utilizing technology within the workplace. Telecommunicating
through virtual meetings is being embraced. It replaces the need for in-person meetings.

Legal factors
The banking industry follows strict laws regarding privacy, consumer laws, and trade
structures to confirm frameworks within the industry. Such structures are required for
customers in the allocated country and for international users.

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 CHAPTER-3

REVIEW OF LITERATURE

1. RBI (2005) proposed financial inclusion based on the business facilitators/ business
correspondent model, adapting the Brazilian success story in India. In 2005, efforts were
made enabling banking services to reach the rural areas through credit facilities. While the
banking network started expanding in the rural areas, there were still a majority of the
population in rural areas without having access to banking services. The reasons behind these
are: declining productivity of the rural branches of SCBs, digression of RRBs from their
social objective of reaching out to the masses and the fragility of the cooperative credit
structure. The report also identified supply and demand side reasons for the lack of
penetration of banking services in the rural areas. The report mainly focused on further
acceleration of efficient and effective delivery of credit to the rural farm and non-farm sectors
and in order to achieve this, the suggestions provided by the committee in the report were
broadly based on the three models such as business facilitator model, business correspondent
model and microfinance model.

2. GOI (2008) examined financial inclusion as a delivery mechanism providing financial

services at an affordable cost to the vast sections of the disadvantaged and low-income
groups. The recommendations of the report focused on the following areas. First, financial
inclusion should include access to mainstream financial products. Second, banking and
payment services should be available to the entire population without discrimination. Third,
promotion of sustainable development and generation of employment in rural areas should be
a priority. Fourth, financial inclusion must be taken up in a mission mode and thereby
suggested the constitution of a National Mission on Financial Inclusion (NMFI) in order to
achieve universal financial inclusion within a specific time frame. Fifth, the Committee also
recommended for the constitution of two funds with NABARD – the Financial Inclusion
Promotion and Development Fund, and the Financial Inclusion Technology Fund for better
credit absorption capacity among the poor and vulnerable sections of the country and also for
proper and appropriate application of technology in order to facilitate the mandated levels of
inclusion. In short, the report provided an understanding of one of the best ways to achieve
inclusive growth through financial inclusion.

3. Kamath (2008) attempted to understand the impact of Micro-Finance Institution

(MFI) loans on daily household cash flows by analyzing cash inflow and outflow patterns of
borrowers of MFI and comparing with non-MFI households. The Financial diary
methodology was used to collect the data and to keep track of 11 months expenditure pattern
(September 2008 to August 2009) of the households of Ramanagar area, Karnataka, India,
and the Principle Component Analysis (PCA) methodology was used IIMB-WP N0. 474 10
to analyze the data. The findings of the study highlighted some critical issues. First,
repayment of one MFI loan was done by using other MFI loans. Second, maximum
repayment of MFI loan exceeded the average income of the households (as the loans were
taken before September 2008). Third, none of the loans were used for productive purpose

18
instead they are used for consumption purpose. Fourth, the households (MFI and non-MFI)
did not find right option to save excess liquidity. Fifth, during the preban, indebted
households spent majority of income on loan repayment, food, fuel, etc. and very little was
being spent on non-food items. Whereas, non-indebted households spent their income on
clothes, accessories, cosmetics, travel, etc. after the food expenditure. Sixth, there was a shift
in the expenditure pattern during the post ban, indebted and non-indebted households started
spending more on non-staple food such as meat, snacks, rice, jewellery, medical expenses,
and travel. Seventh, the expenditure pattern of households with multiple MFI's during post
ban has provided the opportunity to buy more rice and grain. Eighth, majority of the indebted
households found difficulty in repaying the loans. As a result, multiple MFI loans were taken
to repay the debt. Ninth, tacit pressure was placed by loan officers on the group members to
avoid potential default of loans. Tenth, MFI's did not adopt fare mechanism for charging
interest rates. Eleventh, MFI had lent money without assessing borrowers’ debt coverage
ratio (credit worthiness). In short, the MFI crisis occurred due to indebtedness of the
households to the multiple MFI's, and MFI repayments came at the cost of food and travel.

4. Shahul Hameedu (2014)in his study titled, “Financial Inclusion - Issues in

Measurement and Analysis”, explains that financial inclusion is delivery of banking services
of an affordable cost to the vast sections of disadvantaged and low income groups. 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. The banking industry has shown tremendous growth in volume and
complexity during the last few decades. Despite making significant improvements in all the
areas relating to financial viability, profitability and competitiveness, there are concerns that
banks have not been able to include vast segment of the population, especially the
underprivileged sections of the society, into the fold of basic banking services. Internationally
efforts are being made to study the causes of financial exclusion and designing strategies to
ensure financial inclusion of the poor and disadvantaged. The reasons may vary from country
to country and hence the strategy could also vary but all out efforts are being 42 made as
financial inclusion can truly lift the financial condition and standards of life of the poor and
the disadvantaged

5. Bhoomika Garg (2014) made a study titled, “Financial Inclusion and Rural
Development”, Nationalization of banks in 1969 and subsequent developments led to the
expansion of commercial banks, Regional Rural Banks and Co-operative credit institutions
geographically all over India. Banks policy aimed at “social” and “development bonding” by
providing credit to agriculture and other priority sectors. It may be noted that despite of vast
expansion, a large number of group remain excluded from the “opportunities and services”
provided by the financial sector. Such excluded groups include small and marginal farmers,
women, unorganized sector workers including artisans, self-employed and pensioners.
Against this background, the objective of this note is to bring out issues and challenges for
reducing financial exclusion

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6. Elizabeth Kalunda (2014) in her study titled, “Financial Inclusion - Impact on Small-
Scale Tea Farmers in Nyeri County, Kenya”, explains that small scale tea farmers in Kenya
have been targeted by financial inclusion initiatives because of their major contribution in the
country’s economy. The outcome of these initiatives and their impact is not well known. The
study aimed to bridge the gap in empirical literature on the impact of formal financial
services on small scale tea farmers. The study sought to find out the level of financial
inclusion in terms of access and usage and its impact on small scale tea farmers in Nyeri
County, Kenya. The relationship between gender and age on the demand and use of financial
services was also investigated using the Pearson Chi square method. The findings reveal that
the level of inclusion is high and usage in terms of credit access is also high. In terms of
financial literacy the farmers are not receiving adequate financial education which is a
component of financial inclusion. The relationship between gender and age on the demand
and use of financial services under the Pearson’s Chi square method yielded inconclusive
results. The study recommends that financial counseling and education should be offered to
the farmers to enable them to appropriately use the financial products and services offered
through financial inclusion initiatives

7. Sayantani Banerjee and Greeshma Francis (2014) in their study entitled, “Financial
Inclusion and Social Development”, financial institutions are the catalyst in the economic and
social growth and progress in the modern era. In this respect, there is a rapid thrust for
financial inclusion, more so in emerging economies, such as, India. Society will progress
only if there is financial independence for all the stakeholders and thus the importance of
financial inclusion. Providing access to finance is a form of empowerment of the vulnerable
groups. This article emphasis the need of financial inclusion for social development. Access
to basic banking services provides congenial conditions for growth of individuals, households
and private institutions. Also, social factors like unemployment and illiteracy are closely
connected to the success of financial inclusion. Thus a sustainable social development can be
simultaneously achieved alongside financial inclusion

8. Nufazil Altaf (2014) in his study titled, “Towards Financial Inclusion”, explains that
financial inclusion is a prerequisite to economic development. This has been echoed by
international as well as national bodies. This indicates the depth and importance of financial
inclusion in creating inclusive development. This paper concludes that enhanced information
technology, business models, broadening of product and services at the lower end markets
can serve as important measures to promote financial inclusion

9. Nwankwo, Odi., Fcib and Nwankwo and Ogonna N. O. (2014) in their study titled,
“Sustainability of Financial Inclusion to Rural Dwellers in Nigeria: Problems and Way
Forward”, this study critically examines the sustainability of financial inclusion to rural
dwellers in Nigeria using descriptive study and content analysis. The study observed that the
sustainability of financial inclusion to rural dwellers in Nigeria remains the mainstream for
economic growth in any country. The implication of this study is that economy cannot grow
fast without proper implementation of financial inclusion to rural areas in Nigeria. The study
recommended that the promotion of collaboration between Deposit Money Banks (DMBs),

20
Microfinance Banks (MFBs) and Communication services providers for enhanced
intermediation of financial services should be encouraged; there is need to educate rural
dwellers on the importance of banking as it would facilitate the success of CBN financial
inclusion policy and that since some of the rural dwellers preferred to keep money under their
pillows at home, there should be proper enlightenment to change their orientation on financial
inclusion in Nigeria1

10. Sylvia M. Wambua and Evelyne Datche (2013) in their study titled, “Innovative
Factors That Affect Financial Inclusion in Banking Industry. (A Case Study of Equity Bank
Mombasa County, Kenya)”, the general objective of the study was to analyze the innovative
factors that affect financial inclusion specifically focusing on perceived risk on innovated
channels, trust and confidence on innovated delivery channels, user friendliness of innovated
delivery channel and anti-money laundering requirement on the innovated delivery channels
in Mombasa County. The study utilized the descriptive survey research design with
quantitative and qualitative approaches. The target population for the study was 20,585 equity
customers operating in 5 branches within Mombasa County. The sample size for the study
was 2000 customers. To ensure validity of the data collected, effort was made to ensure that
the items in the instruments adequately address all the objectives of the study. The
questionnaire were pilot-tested on 20 customers who were not part of the actual sample and
the data obtained was used to determine the reliability of the questionnaire, after checking the
collected data for completeness, quantitative data was coded and analyzed using Statistical
Package for Social Scientists (SPSS). Descriptive statistics and correlation analysis were
applied in data analysis and findings were presented using frequency distributions, graphs
and pie charts. The study found that innovated channels of distribution are generally
underutilized, the banks that roll out new channels of distribution such as Agency banking, E-
Banking and M-banking are still experiencing influx long queues inside their banking halls
especially at enquiry and customer service counters despite these innovated channels

11. Nagaraja. S and Pallavi and S. Kusugal (2013) in their study titled, “Financial
Inclusion and Rural Development”, the financial inclusion is meant for to ensure a range of
appropriate financial services is available to every individual and enable them to understand
and access those services. Financial inclusion not only mean that opening of saving bank
account but imply creation of awareness about the financial products, education and guidance
on money management, offering debt counseling, etc. by banks. In rural areas revolutionary
measures are step taken by the government through introducing the micro credit facility in
two ways those are ‘Self Help Groups-bank linkage’ and ‘Microfinance institutions’. Rural
development requires this type of provision that is formation of Self help groups. In the rural
areas it has created remarkable change. In the recent phase of globalization, self help groups
have given answer to the poverty. This has created self-reliance, self-respect,
entrepreneurship among poor rural people, not only in India but also in all developing
countries

12. Mohammad Omar Faruk, Soeb Md. Shoayeb Noman (2013) in their study titled, “The
Financial Inclusion: A District Wise Study on Bangladesh”, the financial inclusion, including

21
all the people with the finance, is very concerned issue all over the world where Bangladesh
is also trying to include all the people with the finance. The paper studied the model of
Financial Inclusion Index (FII) between 2007 and 2010 in district level to analyze the
changes of FII in Bangladesh. Though FII ranking of 19 districts have shown positive
changes but ranking of 10 districts have not changes where 35 districts have negatively
changed among the 64 districts of Bangladesh. Some of the reasons of slow financial
inclusion are also discussed in the paper like lack of strong infrastructure, inadequate
financial information, and high account maintenance balance, low income of people and high
cost of banking product. This paper shows the status, problems and key points of financial
inclusion in Bangladesh. The study used three dimensions of financial inclusion to measure
the FII value which indicates the coverage, availability, input and output of banking services
to compute the status, level and magnitude of financial inclusion in division/districts of
Bangladesh and to give a better idea for making fruitful decision to ensure stable and
equitable economic growth of the country

13. Porkodi and Aravazhi (2013) in their study titled, “Role of Micro Finance and Self
Help Groups in Financial Inclusion”,the purpose of this paper is to examine the role of micro
finance in the empowerment of people and the realisation of financial inclusion in India.
While there are reservations about the efficacy of MFIs in handling public money, their
growth and achievements demand attention and appreciation. Today the MFIs want the
government to empower them for mobilising savings. With increasing demand for rural
finance, and the inadequacies of formal sources, the MFIs have immense opportunities in the
new avatar of micro credit in India. However, in the light of recent experiences, and the need
for qualitative growth, we suggest that MFIs should be managed with better scrutiny in terms
of finance and technology as well as social responsibility. This is of utmost importance in
order to upgrade MFIs from thrift and credit institutions to capacity building and
livelihoodsustaining associations of people. NGOs have played a commendable role in
promoting Self Help Groups linking them with banks. There is, therefore, a need to evolve an
incentive package which should motivate these NGOs to diversify into other backward areas
14. Vivekanandan, N.R., (2013) in his study titled, “Financial Inclusion in IndiaA Path
towards Inclusive Economic Growth”, explains that India had experienced a rapid economic
growth in the last decade. But the growth was not inclusive. One of the main reasons for
poverty in India is that low income and disadvantaged groups are financially excluded. All
kinds of financial services are enjoyed by few peoples in the country but still majority of the
people lack access to the basic financial services such as savings, credit and insurance.
Government has taken many steps such as nationalization of banks, credit to priority sector,
opening of Regional Rural Banks (RRBs), Cooperative society, direct benefit transfers etc.,
during last six decades but still majority of rural households do not have credit from formal
source. This article gives the depth knowledge of financial inclusion, product initiatives,
policy initiatives, recent initiatives taken by the Reserve Bank of India (RBI) and the future
initiatives. It brings out whether the financial inclusion paves a way towards inclusive
economic growth of the country

15. Shashikumar, T.P. Rangaswamy K. and Kiran, S.P. (2013) in their study titled,
“Financial Inclusion in India”, explains that access to finance by the poor is a prerequisite for
poverty reduction and sustainable economic development. Importance of financial inclusion

22
arises from the problem of financial exclusion of nearly three billion people from the formal
financial services across the world. The study has critically analyzed the issues and
challenges involved in financial inclusion for inclusive growth and has also successfully
attempted to highlight the factors that can aid in achieving financial inclusion for inclusive
growth in India, particularly in the context of the feared global slowdown and negative
impact of high inflation on the Indian economy. Despite the laudable achievements in the
field of rural banking, issues such as slow progress in increasing the share of institutional
credit, high dependence of small and marginal farmers on non-institutional sources, skewed
nature of access to credit between developed regions and less developed regions loom larger
than ever before. Therefore, the key issue now is to ensure that rural credit from institutional
sources achieves wider coverage and expands financial inclusion. For achieving the current
policy stance of “inclusive growth” the focus on financial inclusion is not only essential but a
prerequisite. And for achieving comprehensive financial inclusion, the first step is to achieve
credit inclusion for the disadvantaged and vulnerable sections of our society. The state has to
play an important role in financial markets. The role itself is necessitated due to pervasive
market failures which in the current globalised scenario is not a rare occurrence. In
developing countries both market and government as institutions have their limitations, but it
is necessary to design government policies that are attentive to those limitations. Financial
Inclusion is one such intervention that seeks to overcome the frictions that hinder the
functioning of the market mechanism to operate in favour of the poor and underprivileged

16. Neha Dangi and Pawan Kumar, (2013) in their study titled, “Current Situation of
Financial Inclusion in India and Its Future Visions”, explains that strong and vigorous
financial institutions are the pillars of economic growth, progress and success of modern
economies. Lack of accessible, affordable and appropriate financial services has always been
a global problem. Therefore, the significance of an inclusive financial system is widely
accepted not only in India, but has become a policy priority in many countries. Financial
access can really boost the financial condition and standards of life of the poor and the
disadvantaged. So, RBI has been constantly encouraging the banking sector to develop the
banking network both through setting up of new branches, installation of new ATMs,
implementation of EBT and also through BC model by leveraging upon the information and
communication technology (ICT).This article focuses on the RBI and GOI initiatives and
policy measures, current status and future prospects of financial inclusion in India on the
basis of facts and data provided by various secondary sources. It is concluded that financial
inclusion shows positive and valuable changes because of change in strength and
technological changes. Therefore, adequate provisions should be inherent in the business
model to ensure that the poor are not driven away from banking. This requires training the
banks forefront staff and managers as well as business correspondents on the human side of
banking

17. Savita Shankar, (2013) made a study titled, “Financial Inclusion in India: Do
Microfinance Institutions Address Access Barriers?”, explains that financial inclusion,
implying expanding access to financial services to those currently not accessing them, is an
important objective in many developing countries. This article analyses if microfinance
institutions (MFIs) adequately break down barriers to financial service access in India. Two
lines of enquiry were followed: the spread of microfinance penetration in the country was

23
analyzed and field interviews of 103 MFI field officers were conducted. It is found that while
MFIs do break down many barriers to financial inclusion, there are limitations in the extent of
their outreach to those excluded. First, MFI penetration in the country is skewed and excludes
some areas neglected by the banking sector, suggesting a need for policy incentives to
encourage expansion to those areas. Second, even in areas in which MFIs operate they are
unable to provide services to some financially excluded individuals on account of their
methods of operation. To provide greater and more long lasting access to more individuals
there is a need for MFIs to consider adopting more flexible operating models and to offer
portability of accounts. There is also a case for skill based training to enable greater access to
MFI membership

18. Kabita Kumari Sahu, (2013) made a study titled, “Commercial Banks, Financial
Inclusion and Economic Growth in India”, the objectives of the paper are to understand the
present status of India’s financial inclusion, to estimate the financial inclusion index for
various states in India and to study the relationship between Financial Inclusion Index and
Socio-economic Variables. It is found that 72.7 percent of India’s 89.3 million farmer
households are excluded from formal sources of finance. The C-D ratios of foreign banks is
85.0 per cent, of regional rural banks is 59.9 per cent and of Private sector banks is 74.7 per
cent which have increased in 2011 from their levels in the previous year (72.9 per cent, 58.3
per cent and 72.7 per cent respectively). No state in India belongs to high IFI group. The two
states namely Chandigarh and Delhi belong to medium IFI, and rest of the states have low IFI
values. The coefficients of PNSDP is positively associated with financial inclusion.
Regression results reveal that 34 percent of the change in financial inclusion index is
explained by per capita net state domestic product

19. Sachin Napate (2013) made a study titled, “Financial Inclusion in India”, tells that
financial inclusion has been looked at only from the prism of making financial services
available, opening no frill accounts, giving smart cards and so on. This paper presents the
cases of financial inclusion in India. While the aim was to ensure that financial inclusion
should not be measured by the number of new groups or enterprises but should focus on
consumption-credit over credit-for-income generation purposes

20. Anupama Sharma and Sumita Kukreja, (2013) in their study titled, “An Analytical
Study: Relevance of Financial Inclusion for Developing Nations”, for developing nations the
era is of inclusive growth and the key for inclusive growth is financial inclusion. Financial
inclusion or inclusive financing is the delivery of financial services, at affordable costs, to
sections of disadvantaged and low income segments of society. There have been many
formidable challenges in financial inclusion area such as bringing the gap between the
sections of society that are financially excluded within the ambit of the formal financial
system, providing financial literacy and strengthening credit delivery mechanisms so as to
improvised the financial economic growth. A nation can grow economically and socially if
it’s weaker section can turn out to be financial independent. The paper highlights the basic

24
features of financial inclusion, and its need for social and economic development of the
society. The study focuses on the role of financial inclusion, in strengthening the India’s
position in relation to other countries economy. For analysing such facts data for the study
has been gathered through secondary sources including report of RBI, NABARD, books on
financial inclusion and other articles written by eminent authors. After analysing the facts and
figures it can be concluded that undoubtedly financial inclusion is playing a catalytic role for
the economic and social development of society but still there is a long road ahead to achieve
the desired outcomes

25
 CHAPTER-4

OBJECTIVES OF THE STUDY

The main objective of this study is to measure the intensity of financial inclusion and
financial awareness among the people. Keeping this in view, the following specific objectives
have been set for the study.
1) To study the banking habit among the people
2) To examine the awareness level of people about financial products and services.

METHODOLOGY

The data required for study are collected from primary and secondary sources. Secondary
data from published books, periodicals, journals etc. These sources are also used for to frame
questionnaire required for collecting primary data. Primary data are collected from a sample
of 30 respondents belonging to different occupational groups residing in Vazhapally
Panchayat by administering a structured questionnaire.

HYPOTHESIS
The following hypotheses are formulated by the researcher to arrive a scientific solution to
various propositions
1. Type of bank accounts and level of income of the respondents are independent
2. Type of bank accounts and occupational status of the respondents are Independent
3. There is no significant difference in the awareness of the financial products and services
provided by banking institutions between the genders.

26
 CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

GENDER

Gender

Frequenc Percent Valid Cumulative

y Percent Percent
1 3.2 3.2 3.2
Male 20 64.5 64.5 67.7
Valid
Female 10 32.3 32.3 100.0
Total 31 100.0 100.0

27
FAMILY INCOME

Family income

Frequency Percent Valid Cumulative

Percent Percent
0 - 3,00,000 13 41.9 43.3 43.3
3,50,000 -
Valid 17 54.8 56.7 100.0
6,00,000
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

28
EDUCATION LEVEL

Education

Frequency Percent Valid Cumulative

Percent Percent
0 - 12 12 38.7 40.0 40.0
Graduate - Post
Valid 18 58.1 60.0 100.0
Graduate
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

29
LOAN AWARENESS

Loan awareness

Frequency Percent Valid Cumulative

Percent Percent
Aware 27 87.1 90.0 90.0
Very
Valid 3 9.7 10.0 100.0
Aware
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

30
INTERNET BANKING AWARENESS

Internet banking awareness

Frequency Percent Valid Cumulative

Percent Percent
Fairly
7 22.6 23.3 23.3
Aware
Valid
Aware 23 74.2 76.7 100.0
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

31
MOBILE BANKING AWARENESS

Mobile Banking awareness

Frequency Percent Valid Cumulative

Percent Percent
Fairly
4 12.9 13.3 13.3
Aware
Aware 14 45.2 46.7 60.0
Valid
Very
12 38.7 40.0 100.0
Aware
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

32
CREDIT CARD AWARENESS

Credit cards awareness

Frequency Percent Valid Cumulative

Percent Percent
Fairly
13 41.9 43.3 43.3
Aware
Valid
Aware 17 54.8 56.7 100.0
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

33
DEBIT CARD AWARENESS

Debit card awareness

Frequency Percent Valid Cumulative

Percent Percent
Aware 22 71.0 73.3 73.3
Very
Valid 8 25.8 26.7 100.0
Aware
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

34
MORTGAGE AWARENESS

Mortgage awareness

Frequency Percent Valid Cumulative

Percent Percent
Fairly
10 32.3 33.3 33.3
Aware
Valid
Aware 20 64.5 66.7 100.0
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

35
DEPOSITS/WITHDRAWAL AWARENESS

Deposts/Withdrawal awareness

Frequency Percent Valid Cumulative

Percent Percent
Aware 16 51.6 53.3 53.3
Very
Valid 14 45.2 46.7 100.0
Aware
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

36
CHEQUE BOOK AWARENESS

Cheque Book awareness

Frequency Percent Valid Cumulative

Percent Percent
Aware 19 61.3 63.3 63.3
Very
Valid 11 35.5 36.7 100.0
Aware
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

37
OVERDRAFT AWARENESS

Overdraft awareness

Frequency Percent Valid Cumulative

Percent Percent
Poorly
9 29.0 30.0 30.0
Aware
Fairly
Valid 17 54.8 56.7 86.7
Aware
Aware 4 12.9 13.3 100.0
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

38
INSURANCE AWARENESS

Insurance awareness

Frequency Percent Valid Cumulative

Percent Percent
Very
4 13.3 13.3 13.3
Aware
Fairly
Valid 8 26.7 26.7 40.0
Aware
Aware 18 60.0 60.0 100.0
Total 30 100.0 100.0

39
ATM AWARENESS

ATM awareness

Frequency Percent Valid Cumulative

Percent Percent
Aware 18 58.1 60.0 60.0
Very
Valid 12 38.7 40.0 100.0
Aware`
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

40
ACCOUNT TYPE

Accounts

Frequency Percent Valid Cumulative

Percent Percent
Savings
26 83.9 86.7 86.7
Account
Valid Current
4 12.9 13.3 100.0
Account
Total 30 96.8 100.0
Missing System 1 3.2
Total 31 100.0

41
TESTING OF HYPOTHESIS

Hypothesis 1: Type of Bank Account and Level of Income

Ho: Type of Bank Account and Level of Income are independent

Family income * Accounts Cross Tabulation

Count
Accounts Total
Savings Current
Account Account
0 - 3,00,000 10 3 13
family
3,50,000 -
income 16 1 17
6,00,000
Total 26 4 30

Chi-Square Tests
Value df Asymp. Sig. Exact Sig. Exact Sig.
(2-sided) (2-sided) (1-sided)
a
Pearson Chi-Square 1.885 1 .170
Continuity Correctionb .690 1 .406
Likelihood Ratio 1.909 1 .167
Fisher's Exact Test .290 .204
Linear-by-Linear
1.822 1 .177
Association
N of Valid Cases 30

42
Hypothesis 2: Type of Bank Account and Level of education
Ho: Type of Bank Account and Level of Education are independent

Education * Accounts Cross Tabulation

Count
Accounts Total
Savings Current
Account Account
0 - 12 9 3 12
Educatio
Graduate - Post
n 17 1 18
Graduate
Total 26 4 30

Chi-Square Tests
Value df Asymp. Sig. Exact Sig. Exact Sig.
(2-sided) (2-sided) (1-sided)
a
Pearson Chi-Square 2.356 1 .125
Continuity Correction .974 1 .324
Likelihood Ratio 2.340 1 .126
Fisher's Exact Test .274 .163
Linear-by-Linear
2.277 1 .131
Association
N of Valid Cases 30

43
Hypothesis 3: Awareness Level of Respondents
Ho: Respondents are well aware of the financial products and services

Group Statistics
Gender N Mean Std. Std. Error
Deviation Mean
Mobile Banking Male 20 4.35 .671 .150
awareness Female 10 4.10 .738 .233
Male 20 3.55 .510 .114
Credit cards awareness
Female 10 3.60 .516 .163
Male 20 4.25 .444 .099
Debit card awareness
Female 10 4.30 .483 .153
Male 20 3.70 .470 .105
Mortgage awareness
Female 10 3.60 .516 .163
Deposits/Withdrawal Male 20 4.40 .503 .112
awareness Female 10 4.60 .516 .163
Cheque Book Male 20 4.30 .470 .105
awareness Female 10 4.50 .527 .167
Male 20 2.90 .641 .143
Overdraft awareness
Female 10 2.70 .675 .213
Male 20 3.85 .671 .150
Insurance awareness
Female 10 3.90 .568 .180
Male 20 4.40 .503 .112
ATM awareness
Female 10 4.40 .516 .163
Male 20 4.05 .224 .050
loan awareness
Female 10 4.20 .422 .133
Internet banking Male 20 3.85 .366 .082
awareness Female 10 3.60 .516 .163

44
 Independent Samples Test

Levine’s t-test for Equality of Means

Test for
Equality
of
Variances
F Sig. t df Sig. Mean Std. 95%
(2- Differen Error Confidence
taile ce Differen Interval of
d) ce the
Difference
Low Upp
er er
Equal
varianc
es .102 .751 .931 28 .360 .250 .268 -.300 .800
assume
Mobile Banking d
awareness Equal
varianc
16.63
es not .901 .380 .250 .277 -.336 .836
0
assume
d
Equal
varianc
-
es .289 .595 28 .803 -.050 .198 -.456 .356
.252
assume
Credit cards d
awareness Equal
varianc
- 17.91
es not .805 -.050 .199 -.469 .369
.251 5
assume
d
Equal
varianc
Debit card -
es .297 .590 28 .780 -.050 .177 -.413 .313
awareness .282
assume
d

45
 Equal
varianc
- 16.79
es not .787 -.050 .182 -.435 .335
.274 9
assume
d
Equal
varianc
es .875 .358 .532 28 .599 .100 .188 -.285 .485
assume
Mortgage d
awareness Equal
varianc
16.65
es not .515 .613 .100 .194 -.310 .510
2
assume
d
Equal
varianc -
1.00
es .000 1.01 28 .317 -.200 .196 -.602 .202
0
assume 8
Deposts/Withdra d
wal awareness Equal
varianc -
17.66
es not 1.00 .327 -.200 .198 -.617 .217
8
assume 9
d
Equal
varianc -
1.77
es .193 1.05 28 .300 -.200 .189 -.588 .188
8
assume 6
Cheque Book d
awareness Equal
varianc -
16.36
es not 1.01 .325 -.200 .197 -.617 .217
0
assume 5
d
Equal
varianc
Overdraft
es .479 .495 .792 28 .435 .200 .252 -.317 .717
awareness
assume
d

46
 Equal
varianc
17.27
es not .778 .447 .200 .257 -.342 .742
6
assume
d
Equal
varianc
-
es .848 .365 28 .841 -.050 .248 -.557 .457
.202
assume
Insurance d
awareness Equal
varianc
- 21.08
es not .833 -.050 .234 -.536 .436
.214 7
assume
d
Equal
varianc
1.00 1.00
es .000 .000 28 .000 .196 -.402 .402
0 0
assume
d
ATM awareness
Equal
varianc
17.66 1.00
es not .000 .000 .198 -.417 .417
8 0
assume
d
Equal
varianc -
7.02
es .013 1.28 28 .210 -.150 .117 -.389 .089
3
assume 3
d
loan awareness
Equal
varianc -
11.60
es not 1.05 .314 -.150 .142 -.461 .161
1
assume 3
d
Equal
varianc
Internet banking 7.02 1.53
es .013 28 .136 .250 .163 -.084 .584
awareness 3 5
assume
d

47
Equal
varianc
1.36 13.68
es not .193 .250 .183 -.143 .643
8 9
assume
d

48
 CHAPTER-6
SUMMARY OF FINDINGS

1. Out of 30 respondents all have bank account.

2. Out of the 30 respondents 66.67% were women and 33.33% were men
3. Through the analysis the majority of the respondents prefer Savings Bank Account
because of easy convenience.
4. About 87.10% of the respondents were well aware about the loans and 76.67% of the
respondents are very well aware about the internet banking services and 40 % of the
respondents are very well aware about the mobile banking services.
5. About 56.67 % of the respondents are aware about the credit card facilities offered
by the bank and 73.3% of the respondents were well aware about the debit card
facilities.
6. About 66.67% respondents are well aware about the mortgage facilities. About 46.6%
of the respondents are very well aware about the deposits and withdrawal facilities
offered by the banks.
7. About 63.33% people are well aware about the cheque book facilities offered by the
bank. None of the respondents were very well aware about the overdraft facilities of
the bank and only 13.33% of the respondents were aware about OD.
8. About 60% respondents were aware about the insurance facilities. About 40% of the
respondents were very well aware about the ATM facilities offered by the Bank.

49
 CHAPTER-7
CONCLUSIONS AND SUGGESTIONS

A great change has happened in the last ten years to overcome financial exclusion. A
framework of policy has emerged from an inclusive process of discussion and debate.
Initiatives and experimental services have been launched to put the policies into effect. We
cannot become complacent and become victims of our own success. Not only should people
have access to basic financial services but should also actively use them. But there are still a
lot more to do, stimulating use of financial services as well as access, ensuring long-term
sustainability of current initiatives and tackling new forms of exclusion and marginalization
as they arise.

50