1

1.1. INTRODUCTION
THE EFFECT OF FINANCIAL INCLUSION ON RURAL
DEVELOPMENT
Financial inclusion is delivery of banking services at an affordable cost ('no frills'
accounts,) to the vast sections of disadvantaged and low income group. Unrestrained
access to public goods and services is the sine qua non of an open and efficient
society. As banking services are in the nature of public good, it is essential that
availability of banking and payment services to the entire population without
discrimination is the prime objective of the public policy."
Financial Inclusion broadly refers to the delivery of banking and other financial
services to the people in rural villages who have had no access to these services as
they are not available in the villages. This concept is also termed as Financial
Exclusion. The level of banking exclusion varies across the countries and the world.
However, it is the same group of people everywhere who are affected by this financial
exclusion. People who have low income or no source of regular income, who lack
capabilities that can be converted into labour and who have the history of bad debts
and so on, are excluded from availing the financial services.
In the light of the generally accepted belief that improving access to various
financial services in the hitherto neglected rural villages, Financial Inclusion as an
instrument for bridging the urban-rural divide in the financial sector has been
identified. Keeping in pursuance of the directions of RBI, all the Commercial and
other banks have taken up the task of working towards Financial Inclusion.








2

Financial Inclusion and Rural Development:
Poor deposit-base in the rural branches of the root cause that prevent banks
reaching out to the poor.
The Regional Rural Banks are the best fitted to be the vehicle for financial
inclusion in rural areas, Their Regional Character, their functioning in a
homogenous agro-climatic area, and their employees, hailing from the same
area, are best suited to relate with the rural customers.
The Initiatives of Reserve Bank of India (RBI) towards financial inclusion of
the rural poor include Introduction of basic no-frills saving accounts making
them accessible to vast sections of the rural poor, Issuance of simplified
General purpose Credit Card (GCC) without insistence on collateral or
purpose and Relaxation of KYC norms for opening new relationship accounts
in rural areas
Intermediaries through who banks reach-out to the rural poor in areas they
have no branches include Self-Help Groups, Non-Government Organizations
and Microfinance Institutions










3

1.2. SIGNIFICANCE OF THE STUDY
The policy makers have been focusing on financial inclusion of Indian rural and
semi-rural areas primarily for three most important pressing needs.
RBI set up the Khan Commission in 2004 to look into financial inclusion and the
recommendations of the commission were incorporated into the mid-term review of
the policy (200506) and urged banks to review their existing practices to align them
with the objective of financial inclusion.
Creating a platform for inculcating the habit to save money:
The lower income category has been living under the constant shadow 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 be boosted once financial
inclusion measures materialize, as people move away from traditional modes
of parking their savings in land, buildings, bullion, etc
2. Providing formal credit avenues:
So far the unbanked population has been vulnerably dependent of informal
channels of credit like family, friends and moneylenders. Availability of
adequate and transparent credit from formal banking channels shall allow the
entrepreneurial spirit of the masses to increase outputs and prosperity in the
countryside. A classic example of what easy and affordable availability of
credit can do for the poor is the micro-finance sector.
3. Plug gaps and leaks in public subsidies and welfare programs:
A considerable sum of money that is meant for the poorest of poor does not
actually reach them. While this money meanders through large system of
government bureaucracy much of it is widely believed to leak and is unable to
reach the intended parties. Government is therefore, pushing for direct cash
transfers to beneficiaries through their bank accounts rather than subsidizing
products and making cash payments. This laudable effort is expected to reduce
governments subsidy bill (as it shall save that part of the subsidy that is
leaked) and provide relief only to the real beneficiaries.
4

1.3. OBJETIVES OF STUDY
The following are the main objectives of this project study. They are,
To identify awareness of banking services in rural area.
To identify the role of financial inclusion on rural development
To know the change in economic position of people before and after financial
inclusion.

1.4. SCOPE OF STUDY
This study will be selected villages in rural area of respected
Bheemgal Mandal Nizamabad district only.
And this project is general study about the financial awareness of
rural people in Bheemgal Mandal Nizamabad district
This study analysis the banking habit of rural area people of
Bheemgal Mandal, Nizamabad district.
This study will do selected villages in rural area of respected Bheemgal Mandal
Nizamabad district only. And this project is general study about the financial
awareness of rural people in Nizamabad district





5

1.5. PERIOD OF STUDY
This project study completed in 45 days and this project depends on the financial
inclusion plans and strategies of selected banks in during the year of 2010 to 2014. It
finds results of the performance of the banks services.


1.6. LIMITATIONS
This project study is limited to banking sector.
This project study is limited to Bheemgal Mandal District of Nizamabad only.
This project study limit to 100 respondents only.
Time is one of the limiting factors that are only 45days (6 weeks).
It is limited the responses of respondents responsible.








6

1.7. RESEARCH AND METHODOLOGY
1.7.1. SOURCE OF DATA:
This project study research about the effect of financial inclusion on rural
development. For the study data has been taken from primary and secondary data,
primary data collected through structured questionnaires by personal interview and
discussions, and secondary data from journals, articles and other websites. In this
project the major source of data is primary data.
1.7.2. SAMPLING:
An integral component of research design is the sampling plan. Especially it
addresses three questions: who to survey (sample unit) how many to survey (sample
size) and how to select them (sampling procedure). Making the census study of the
entire universe will be impossible on the account of limitations of time and money.
Hence sampling procedures representative data of the entire population
1.7.3. SAMPLING METHOD:
Random convenience sampling was used here because the study is restricted to
Bheemgal mandal district of Nizamabad which is in rural area.

1.7.4. SAMLING TOOL:
Questionnaire was used as a tool for the collection of data, mainly because it gives
the chance for timely feedback from respondents. Moreover respondents feel free to
disclose all necessary detail while filling up a questionnaire.

1.7.5. SAMPLE SIZE:
In this research of the study the size of the sample is 100 respondents.



7

1.7.6. STATISTICAL TOOLS & TECHNIQUES:
Percentage of method is used in making comparison between two or more series of
data. This is used to describe relationship.
Percentage of respondents=100* No .of respondents/ Total respondents.
1.7.7. SELECTED VILLEGES:
This project study done in the below 10 villages out of 24 villages of Bheemgal
Mandal District of Nizamabad which is in rural area.
1-Babapoor
2-Bheemgal
3-Chengal
4-Gongoppula
5-Jagiryal
6-Muchkur
7-Mendora
8-Pallikonda
9-Pipri
10-Rahathnagar












8

REVIEW OF LITERATURE

The purpose of literature review is to review various studies conducted and
published on Financial Inclusion Plan so far, to consolidate different views and
opinions and to find out research gap.

Joseph Massey (2010) said that, role of financial institutions in a developing
country is vital in promoting financial inclusion. The efforts of the government
to promote financial inclusion and deepening can be further enhanced by the
pro-activeness on the part of capital market players including financial
institutions. Financial institutions have a very crucial and a wider role to play
in fostering financial inclusion. National and international forum have
recognized this and efforts are seen on domestic and global levels to
encourage the financial institutions to take up larger responsibilities in
including the financially excluded lot.

Mandira Sarma and Jesim Paise (2008) suggest that the issue of financial
inclusion is a development policy priority in many countries. Using the index
of financial inclusion developed in levels of human development and financial
inclusion in a country move closely with each other, although a few
exceptions exist. Among socio-economic factors, as expected, income is
positively associated with the level of financial inclusion. Further physical and
electronic connectivity and information availability, indicated by road
network, telephone and internet usage, also play positive role in enhancing
financial inclusion.


Michael Chibba (2009) noted that Financial Inclusion is an inclusive
development and Poverty Reduction strategy that manifests itself as part of the
emerging FI-PR-MDG nexus. However, given the current global crises, the
need to scale-up Financial Inclusion is now perhaps more important as a
complementary and incremental approach to work towards meeting the MDGs
than at any other time in recent history.
9



Oya Pinar Ardic et al (2011) explained that using the financial access database
by CGAP and the World Bank group, this paper counts the number of
unbanked adults around the world, analyses the state of access to deposit and
loan services as well as the extent of retail networks, and discusses the state of
financial inclusion mandates around the world. The findings indicate that there
is yet much to be done in the financial inclusion arena. Fifty-six percent of
adults in the world do not have access to formal financial services

C. Paramasivan and V. Ganeshkumar (2013) said that Branch density in a state
measures the opportunity for financial inclusion in India. Literacy is a
prerequisite for creating investment awareness, and hence intuitively it seems
to be a key tool for financial inclusion. But the above observations imply that
literacy alone cannot guarantee high level financial inclusion in a state. Branch
density has significant impact on financial inclusion. It is not possible to
achieve financial inclusion only by creating investment awareness, without
significantly improving the investment opportunities in an India.

The Government of Indias committee on Financial inclusion in India
(Rangarajan committee 2008) defined the financial inclusion as the process
of ensuring access to financial services and timely and adequate credit where
needed by vulnerable groups such as the weaker sections and low income
groups at an affordable cost.

According to Rajan (2009), development of the financial system contributes to
economic growth. A perusal of literature on finance and economic
development reveals that the earlier theories of development concentrated on
labor, capital, institutions, etc., as the factors for growth and development.
There have been numerous researches analyzing how financial systems help in
developing economies. A great deal of consistency exists among economists
regarding financial development prompting economic growth. Many theories
have established that, financial development creates favourable conditions for
growth through either a supply leading or a demand-following channel.
10


Shri KC Chakrabarty (2013), Deputy Governor, RBI. He has stated that RBI
will encourage new models of banking under financial inclusion that are more
connected to people. RBI is currently working on three year financial
inclusion plan as nearly after nationalization of banks, 60% of the countrys
population does not have bank accounts and nearly 90% do not get the loans.

According to Dr. K.C. Chakrabarty (2011), Deputy Governor, Reserve Bank
of India, financial Inclusion is the process of ensuring access to appropriate
financial products and services needed by all sections of the society in general
and vulnerable groups such as weaker sections and low income groups in
particular at an affordable cost in a fair and transparent manner by mainstream
institutional players.

The RBI Deputy Governor, Smt Usha Thorat, (2010) in her speech delivered
in World Bank in June2010 said that the case for financial inclusion is not
based on the principle of equity alone but access to affordable and stable
banking services are required for inclusive growth.

A.Padma and Dr.Rambabu Gopisetti (2013) said that, India is reflects the
considerable economic growth and a moderate population growth with due
increase in per capita income.It is evident from the percentage of population
below the poverty line. India being a socialist, democratic republic, it is
imperative on the policies of the government to ensure equitable growth of all
sections of the economy. So, it should achieve 100% financial inclusion to
reach overall development inclusive of rural areas quality of life at par with
the people of urban area.






11

According to Indian institute of banking and finance, "financial inclusion is
delivery of banking services at an affordable cost ('no frills' accounts,) to the
vast sections of disadvantaged and low income group. Unrestrained access to
public goods and services is the sine qua non of an open and efficient society.
As banking services are in the nature of public good, it is essential that
availability of banking and payment services to the entire population without
discrimination is the prime objective of the public policy."

Beck & De la Torre (2006) said that the breadth of financial inclusion in a
region or a country is usually measured by the percentage of people in the
region who have access to bank accounts.
Leeladhar, (2005) and Ghate, (2007) described that the focus on credit has
meant that policy and practice has thus far ignored the provision of a safe
place for savings for rural households, in spite of evidence that poor people do
save. India has approximately 300 million savings accounts which would
imply that about 59% of Indias adult population has access to a savings
account.
Leyshon and Thrift, (1993) measuring inclusion is perceived to be difficult,
financial inclusion is generally defined in terms of exclusion from the financial
system. Early discussion on financial exclusion was preceded by social
exclusion and focused predominantly on the issue of geographical access to
financial services, in particular banking outlets.
Ford et al (1996 &1998) at all said that financial exclusion is not just about
physical access caused by the changing topography of financial services.
Therefore, the debate has now broadened to include all types of people who
make little or no use of financial services and the processes of financial
exclusion. (Ford and Rowlingson, 1996; Kempson and Whyley, 1998).



12

Kempson et al., (2000) Defines of financial exclusion vary considerably
according to the dimensions such as the concept of relativity, i.e., financial
exclusion defined relative to some standard (i.e., inclusion). This line of
thinking defines the problem of financial exclusion as that emanating from
increased inclusion, leaving a minority of individuals and households behind.
Asian Development Bank (2000) defines financial inclusion as Provision of a
broad range of financial services such as deposits, loans, payment services,
money transfers and insurance to poor and low-income households and their
micro-enterprises.
Treasury Committee, House of Commons, UK (2004) views financial
inclusion as Ability of individuals to access appropriate financial products
and services.
Scottish Government (2005) views financial inclusion as access for
individuals to appropriate financial products and services. This includes
having the capacity, skills, knowledge and understanding to make the best use
of those products and services. Financial exclusion by contrast, is the converse
of this.











13

3.1. ABOUT NIZAMABAD DISTRICT

Figure: 3.1
Nizamabad district is located in the north-western region in the state of Telangana,
India. The district has an area of 7956 km
2
while according to 2011 census its
population is 2,552,073 of which 23.06% were urban. The total population roughly
equal to the nation of Kuwait or US state of Neveda. This gives it a ranking of 165
th
in
India (out of a total of 640). The district has a population density of 321 inhabitants
per square kilometer (830/ sq mi).
14

3.1.1. BOUNDARIES AND TOPOGRAPHY
Nizamabad district is bounded on the North by Adilabad district and on the East by
Karimnagar district, on the South by Medak district on the West by Nanded district of
Maharastra State and Bidar of Karnataka State. The geographical area of this district
is 9, 80,595 acres or 7,956 Sq. Kms. The district lies between 180 5 and 190 of the
Northern latitudes and 770 4 and 780 37 of the Eastern longitudes. As the district is
situated at a considerable distance from the seacoast the climate is tropical.
The temperature fluctuations are high in the district. The normal mean minimum
temperature 13.70C and mean maximum is 39.90C, at times; the temperature goes as
low as 50C during winter and rises as high as 470C, during peak summer.

Table No: 3.1.
DESCRIPTION 2011 CENSUS
Total population 2,552,073
Male 1,252,191
Urban: 2.2lakhs Rural: 10.3lakhs
Female 1,299,882
Urban : 2.08lakhs Rural: 10.8lakhs
S.C. 3.48Lakhs
S.T. 1.65lakhs
Population growth 8.80%
Literacy 61.25%
Area km2 7956
Density/km2 321
Sex ratio 1038
Per capita Income Rs 26,241
Number of Mandals 36




15

3.2. ABOUT BHEEMGAL MANDAL


BHEEMGAL TELANGANA 503307





Bheemgal is a Mandal in Nizamabad District of Telangana State, India. Bheemgal
Mandal Head Quarters is Bheemgal town. It belongs to Telangana region. It is located
44 KM towards East from District head quarters Nizamabad.
Bheemgal Mandal is bounded by by Velpur Mandal towards North, Mortad
Mandal towards North, Sirkonda Mandal towards South, Kammarapalle Mandal
towards North. Koratla City, Nizamabad City, Kamareddy City, Nirmal City are the
nearby Cities to Bheemgal.

Bheemgal consist of 40 Villages and 18 Panchayats . Salampur is the smallest
Village and Bheemgal is the biggest Village. It is in the 424 m elevation (altitude).
16

This Place is in the border of the Nizamabad District and Karimnagar District.
Karimnagar District Metpalli is east towards this place.
3.2.1. DEMOGRAPHICS OF BHEEMGAL MANDAL
Telugu is the Local Language here. Total population of Bheemgal Mandal is
57,262 living in 12,239 Houses, Spread across total 40 villages and 18 panchayats .
Males are 27,924 and Females are 29,338.
3.2.2. LIST OF VILLLAGES IN BHEEMGA
The following the table shows that the villages of Bheemgal Mandal. In Bheemgal
manadal nearly 35 villages located in that the 26 major (pachanyath) villages. Nearly
20 Thandas also in Bheemgal.





Table No: 3.2.
LIST OF VILLLAGES IN BHEEMGAL MANDAL
BABA NAGAR BABAPOOR BACHANAPALLY
BADABHEEMGAL BEJJORA BHEEMGAL
BHEEMNAGAR CHENGAL DEVAKKAPET
DEVENPALLY GANGARAI GONGOPPULA
JAGIRAYAL KAREPALLY KUPKAL
LINGAPOOR MENDORA MUCHKOOR
PALLIKONDA PIPRI(J) PURANIPET
RAHATNAGAR SALAMPOOR SECUNDRAPOOR
SIDDAPALLY TALLAPAALY
17

3.2.3. BANKING SCENARIO IN BHEEMGAL MANDAL
The banking scenario in Bheemgal mandal the seven banks providing the Banking
services in the mandal. The banking services network is expanding the total Bheemgal
mandal and partially Velpoor .Morthad, Kammerpally and Sirikonda Mandals.
Almost all villages near to the banking services except the tribal villages. These
villages very far and located in mountains (forest).
3.2.4. BANKS OPERATED IN BHEEMGAL MANDAL
The following table shows that the banks which are operate in Bheemgal mandal.







Table No: 3.3.
S.NO BANKS OPERATED IN BHEEMGAL MANDAL
1 STATE BANK OF HYDERABAD BHEEMGAL
2 DECCAN GREEMANA BANK BHEEMGAL
3 ANDHRA BANK BHEEMGAL
4 NIZAMABAD DISTRICT CO-OPERATIVE BANK BHEEMGAL
5 STATE BANK OF INDIA PALLIKONDA
6 ING VYSYA BANK MUCHKOOR
7 STATE BANK OF HYDERABAD SINKINDRAPOOR
18

3.2.4. BC & BF MODELS IN BHEEMGAL MANDAL
Table No: 3.4.
S.NO BC & BF MODELS IN BHEEMGAL MANDAL
1 BABAPOOR
2
BADA BHEEMGAL
3
BEJJORA
4
MENDORA
5
PURANIPET
The above table indicates that the BC&BF Models which are located in Bheemgal
mandal. The bc& bf modwls are belongs to the SBH bank only.

3.2.5. SELECTED VILLAGES
This project study done in the below 10 villages out of 26 (Panchayathis) villages
of Bheemgal mandal district of Nizamabad which is in rural area.
1-Babapoor
2-Bheemgal
3-Chengal
4-Gongoppula
5-Jagiryal
6-Muchkur
7-Mendora
8-Pallikonda
9-Pipri
10-Rahathnagar


19

4.1. MEANING OF FINANCIAL INCLUSION
Even after 60 years of independence, a large section of Indian population still
remains unbanked. This malaise has led generation of financial instability and
pauperism among the lower income group who do not have access to financial
products and services. However, in the recent years the government and Reserve Bank
of India has been pushing the concept and idea of financial inclusion.
What is Financial Inclusion in banking? What is meaning of Financial Inclusion
in Indian context?
The term "financial inclusion" has gained importance since the early 2000s, a result
of findings about financial exclusion and its direct correlation to poverty.
Financial inclusion or inclusive financing is the delivery of financial services at
affordable costs to sections of disadvantaged and low-income segments of society, in
contrast to financial exclusion where those services are not available or affordable.
4.2. DEFINITIONS OF FINANCIAL INCLUSION
1. Financial inclusion may be defined as the process of ensuring access to
financial services and timely and adequate credit where needed by vulnerable
groups such as weaker sections and low income groups at an affordable cost.
- Dr. C. Rangarajan (The Committee on Financial Inclusion, Chairman)
2. Financial Inclusion, broadly defined, refers to universal access to a wide range
of financial services at a reasonable cost. These include not only banking
products but also other financial services such as insurance and equity
products; Household access to financial services is depicted in.
- Dr.Raghuram G. Rajan (The Committee on Financial Sector Reforms,
Chairman)


20

3. The essence of financial inclusion is to ensure delivery of financial services
which include - bank accounts for savings and transactional purposes, low cost
credit for productive, personal and other purposes, financial advisory services,
insurance facilities (life and non-life).
4. Financial inclusion broadens the resource base of the financial system by
developing a culture of savings among large segment of rural population and
plays its own role in the process of economic development. Further, by
bringing low income groups within the perimeter of formal banking sector;
financial inclusion protects their financial wealth and other resources in
exigent circumstances. Financial inclusion also mitigates the exploitation of
vulnerable sections by the usurious money lenders by facilitating easy access
to formal credit.

4.3. FINANCIAL INCLUSION GOALS
The term "financial inclusion" has gained importance since the early 2000s, a
result of findings about financial exclusion and its direct correlation to poverty. The
United Nations defines the goals of financial inclusion as follows:
access at a reasonable cost for all households to a full range of financial
services, including savings or deposit services, payment and transfer services,
credit and insurance;
sound and safe institutions governed by clear regulation and industry
performance standards;
financial and institutional sustainability, to ensure continuity and certainty of
investment; and
Competition to ensure choice and affordability for clients.


21

The main goal of financial inclusion is to improve the range, quality and
availability of financial services and products to the un-served under-served and
financially excluded
Access:
The availability of affordable and appropriate financial products, services and
delivery channels to the target market to facilitate universal access.
Affordability:
Products and services provided at affordable cost. The continuum of financial
institutions should strive to reduce cost-to-client and the cost-to-serve in order
to ensure that the price of products and services is in line with the target
markets ability to pay for them.
Quality:
Describes how financial services are provided. Quality financial inclusion
includes the following traits. Affordability, simplicity, convenience, product-
fit, safety, dignity of treatment, and client protection. Quality refers to product
design and delivery traits that enhance the value of services to clients.
Consumer Financial Education:
The provision of consumer financial education on the use of financial services
is important if the previously disadvantaged are to use these services in a
productive and responsible manner that will not cause them harm.
Innovation and Diversification
Embrace innovative product design, delivery channels and new technologies,
keeping in mind that inclusion will be driven by diverse institutions on the
financial services continuum.
Simplicity
The ease of use and understanding of the product and services, simple
language and channels that are used to deliver them

22

4.4. FINANCIAL INCLUSION IN INDIA
The Reserve Bank of India (RBI) had set up the Khan Commission in 2004 to look
into financial inclusion and the recommendations of the commission were
incorporated into the mid-term review of the policy (200506). In the report RBI
exhorted the banks with a view to achieving greater financial inclusion to make
available a basic "no-frills" banking account. In India, financial inclusion first
featured in 2005, when it was introduced by K.C. Chakraborthy, the chairman of
Indian Bank. Mangalam became the first village in India where all households were
provided banking facilities. Norms were relaxed for people intending to open
accounts with annual deposits of less than Rs. 50,000. General credit cards (GCCs)
were issued to the poor and the disadvantaged with a view to help them access easy
credit. In January 2006, the Reserve Bank permitted commercial banks to make use of
the services of non-governmental organizations (NGOs/SHGs), micro-finance
institutions, and other civil society organizations as intermediaries for providing
financial and banking services. These intermediaries could be used as business
facilitators or business correspondents by commercial banks. The bank asked the
commercial banks in different regions to start a 100% financial inclusion campaign on
a pilot basis. As a result of the campaign, states or union territories like Puducherry,
Himachal Pradesh and Kerala announced 100% financial inclusion in all their
districts. Reserve Bank of Indias vision for 2020 is to open nearly 600 million new
customers' accounts and service them through a variety of channels by leveraging on
IT. However, illiteracy and the low income savings and lack of bank branches in rural
areas continue to be a roadblock to financial inclusion in many states and there is
inadequate legal and financial structure.
In India, RBI has initiated several measures to achieve greater financial inclusion,
such as facilitating no-frills accounts and GCCs for small deposits and credit. Some of
these steps are:
Opening of no-frills accounts: Basic banking no-frills account is with nil or very
low minimum balance as well as charges that make such accounts accessible to vast
sections of the population. Banks have been advised to provide small overdrafts in
such accounts.
23

Relaxation on know-your-customer (KYC) norms: KYC requirements for
opening bank accounts were relaxed for small accounts in August 2005; thereby
simplifying procedures by stipulating that introduction by an account holder who has
been subjected to the full KYC drill would suffice for opening such accounts. The
banks were also permitted to take any evidence as to the identity and address of the
customer to their satisfaction. It has now been further relaxed to include the letters
issued by the Unique Identification Authority of India containing details of name,
address and Aadhaar number.
Engaging business correspondents (BCs):In January 2006, RBI permitted banks
to engage business facilitators (BFs) and BCs as intermediaries for providing financial
and banking services. The BC model allows banks to provide doorstep delivery of
services, especially cash in-cash out transactions, thus addressing the last-mile
problem. The list of eligible individuals and entities that can be engaged as BCs is
being widened from time to time. With effect from September 2010, for-profit
companies have also been allowed to be engaged as BCs. India map of Financial
Inclusion by MIX provides more insights on this.
Use of technology: Recognizing that technology has the potential to address the
issues of outreach and credit delivery in rural and remote areas in a viable manner,
banks have been advised to make effective use of information and communications
technology (ICT), to provide doorstep banking services through the BC model where
the accounts can be operated by even illiterate customers by using biometrics, thus
ensuring the security of transactions and enhancing confidence in the banking system.
Adoption of EBT: Banks have been advised to implement EBT by leveraging
ICT-based banking through BCs to transfer social benefits electronically to the bank
account of the beneficiary and deliver government benefits to the doorstep of the
beneficiary, thus reducing dependence on cash and lowering transaction costs.
GCC: With a view to helping the poor and the disadvantaged with access to easy
credit, banks have been asked to consider introduction of a general purpose credit card
facility up to `25,000 at their rural and semi-urban branches. The objective of the
scheme is to provide hassle-free credit to banks customers based on the assessment
of cash flow without insistence on security, purpose or end use of the credit.
24

Simplified branch authorization: To address the issue of uneven spread of bank
branches, in December 2009, domestic scheduled commercial banks were permitted
to freely open branches in tier III to tier VI centers with a population of less than
50,000 under general permission, subject to reporting. In the north-eastern states and
Sikkim, domestic scheduled commercial banks can now open branches in rural, semi-
urban and urban centers without the need to take permission from RBI in each case,
subject to reporting.
Opening of branches in unbanked rural centers: To further step up the opening
of branches in rural areas so as to improve banking penetration and financial inclusion
rapidly, the need for the opening of more bricks and mortar branches, besides the use
of BCs, was felt. Accordingly, banks have been mandated in the April monetary
policy statement to allocate at least 25% of the total number of branches to be opened
during a year to unbanked rural centers.
Reserve Bank of India has planned Aadhaar-linked bank accounts for all adults of
India by January 2016 to meet its commitment on financial inclusion. It will greatly
transform India by preventing the poor people falling into debt-traps of unlawful
money-lenders, cashless transactions, elimination of poverty and corruption.
A basic Aadhaar-enabled bank account (AeBA) is a basic savings account
(zero-balance) where a debit-card is issued and the Aadhaar number is used as the
account number. It can be instantly opened (like a prepaid bankcard). Transactions
operate with fingerprint authentication only; as indicated by the Aadhaar logo on the
card. PIN is not issued to zero-balance AeBA because it is aimed at financial
inclusion of unbanked, illiterate, and rural people. Bankcard operates at micro-ATM
and other ATMs equipped with fingerprint scanner. Presently passbook is not issued
to these accounts due to infrastructure problem. Transactions like deposit, withdrawal,
transfer, and balance-check can be performed. AeBA is used for direct payment of
social security benefits such as pensions, scholarships, NREGA wages, healthcare,
and subsidy for LPG, kerosene, PDS ration, fertilizers etc.
25

Pradhan Mantri Jan Dhan Yojana. Indian Prime Minister Narendra Modi
announced this scheme for comprehensive financial inclusion on his first Independence
Day speech on 15 August 2014. The scheme was formally launched on 28 August 2014

with a target to provide 'universal access to banking facilities' starting with Basic
Banking Accounts with overdraft facility of Rs.5000 after six months and RuPay Debit
card with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card & in next
phase, micro insurance & pension etc. will also be added.

In a run up to the formal
launch of this scheme, the Prime Minister personally mailed to CEOs of all banks to gear
up for the gigantic task of enrolling over 7.5 crore (75 million) households and to open
their accounts. In this email he categorically declared that a bank account for each
household was a "national priority".
On the inauguration day of the scheme, 1.5 Crore (15 million) bank accounts were
opened.

4.5. FINANCIAL INCLUSION AND RURAL DEVELOPMENT
The above statement by father of the nation is valid today also, because now also
major proportion of population in India live in villages, it states that most of the
human capital stays in rural India, development of which is must to accelerate the
growth rate of the country. Hence there is a close relationship between financial
inclusion and rural development.

Poor deposit-base in the rural branches of the root cause that prevent banks
reaching out to the poor.
The Regional Rural Banks are the best fitted to be the vehicle for financial
inclusion in rural areas, Their Regional Character, their functioning in a
homogenous agro-climatic area, and their employees, hailing from the same
area, are best suited to relate with the rural customers.
The Initiatives of Reserve Bank of India (RBI) towards financial inclusion of
the rural poor include Introduction of basic no-frills saving accounts making
them accessible to vast sections of the rural poor, Issuance of simplified
General purpose Credit Card (GCC) without insistence on collateral or
purpose and Relaxation of KYC norms for opening new relationship accounts
in rural areas
26

Intermediaries through who banks reach-out to the rural poor in areas they
have no branches include Self-Help Groups, Non-Government Organizations
and Microfinance Institutions
How its effect the Rural Development?
The Government of India and the Reserve Bank of India have been making concerted
efforts to promote financial inclusion as one of the important national objectives of
the country. Some of the major efforts made in the last five decades include -
nationalization of banks, building up of robust branch network of scheduled
commercial banks, co-operatives and regional rural banks, introduction of mandated
priority sector lending targets, lead bank scheme, formation of self-help groups,
permitting BCs/BFs to be appointed by banks to provide door step delivery of
banking services, zero balance BSBD accounts, etc. The fundamental objective of all
these initiatives is to reach the large sections of the hitherto financially excluded
Indian population.

4.6. IMPORTANCE OF FINANCIAL INCLUSION FOR RURAL
DEVELOPMENT

Access of financial services is limited in the rural areas when it is compared to
urban and sub urban areas i.e. inclusion is more in urban and sub urban areas.
Inability of getting access to formal sources of finance forcing them to
approach the local money lenders who charges very higher interest rates some
times 24% to 50%, this makes the poor to become more poorer

High portion of the earnings of these people are paid in the form of interest.
Nothing is left for saving. When there is no savings there is no choice of
investment.

Participation of entire population of the country in well functioned financial
system boosts the economy, which mostly required by developing countries

27

Most of the people in rural areas are depend on agriculture and daily wage
which doesnt ensure regular income. As a result, many people have to
necessarily depend either on their own sources or informal sources of finance,
which are generally at high cost

Access to safe, easy and affordable credit and other financial services by the
poor and vulnerable groups and disadvantaged areas enable the conditions for
growth, increase social equality and reduce income disparities and poverty.
Access to the formal financial system for excluded provides them equal
opportunities to participate in socio and economic activities
Financial assistance helps them to overcome sudden financial shocks

As financial inclusion increases poverty decreases which is prime objective of
country

Financial inclusion provides formal identity, access to payments system &
deposit insurance

Countries with large proportion of population excluded from the formal
financial system also show higher poverty ratios and higher inequality,
countries with low levels of income inequality tend to have lower levels of
financial exclusion, while high levels of exclusion are associated with the least
equal ones







28

PART-A
DEMOGRAPHICAND SOCIO ECONOMIC CONDITION
1. Gender of the Respondents:
a) Male ( ) b) Female ( )

Figure: 5.1.
The above pie chart consist the respondents gender. In this case study 65% males
and 35% females were involved. And they were freely shared their opinion with us.








65%
35%
MALE
FEMALE
29

2. Age of the Respondents:
a)15-25 ( ) b)25-35 ( ) c)35-45 ( )d)45-55 ( ) e) 55 above ( )

Figure: 5.2.
The above pie chart reveals the AGE group of respondents. The age divided into 5
groups. In this study the most of respondents belongs to the a) 15-25 age group with
33%.Than second place is b) 25-35 group with 26%. In third place d) 45-55 group
with 16%.the fourth place is 13% that is c) 35-45 group. The least is e) 55 above
group with12%.









33%
26%
13%
16%
12%
a)15-25
b)25-35
c)35-45
d)45-55
e)above55
30

3. Occupation of the Respondent:
a) Agriculture ( ) b) Cultivator labor ( ) c) Construction labor ( )
d) Industrial labor ( ) e) Small business ( ) f) Govt employee ( ) g) PVT Employee
( ) h) NRI ( ) I) Student ( ) j) others ( )



In this project the different types of occupation people are involved. In that the
most of respondents are farmers with 30%. Others and students are after then the
agriculture with 20% and 17%. Now days the farmers and students are mostly
involved in banking activities because the government directly given to the scheme
benefits through the banks like subsides, fee reimbursements and scholarships. Small
business with 12% and private employees with 9%. NRIs with 6% and government
employees with4% participated in this study.




30%
2%
0%
0%
12%
4% 9%
6%
17%
20%
Agriculture
Cultivate labour
Construction labor
Industrial labor
Small business
Govt employee
Pvt employee
NRI's
Student
Others
Figure: 5.3.
31

4. Education qualification of the Respondents:
a) Illiterate ( ) b) Primary ( ) c) SSC ( ) d) Intermediate ( ) e) UG ( ) f) PG ( )

Figure: 5.4.
The above pie chart discloses the education levels of the respondents. The different
type of respondents were involve this case study, like illiterate, primary, SSC,
intermediate, UG and PG.
In this study the UG (degree) holders are occupied the first place with 32%. The
second place occupied by the illiterate respondents with 22%. Then the SSC, primary
and intermediate respondents are involved with the 15%, 14% and 11%. The least
place occupied by the PG holders with 6% because in rural area the people have less
facility to study the higher education.






22%
14%
15% 11%
32%
6%
Illiterate
Primary
SSC
Intermediate
UG
PG
32

5. Community of the Respondents:
a) OC ( ) b) BC ( ) c) SC ( ) d) ST ( ) e) Others ( )

Figure: 5.5.
The above pie chart reveals the community of the respondents. The most of
respondents belongs to the BCs (Back ward) community. The percentage is 65%.
Then SC and ST respondents involved with same 12%. Others with6% and OCs with
the 5%.










5%
65%
12%
12%
6%
OC
BC
SC
ST
OTHERS
33

6. Income of the Respondents:
a) Less than10000 ( ) b) 10000-20000 ( ) c) 20000-40000 ( )
d) 40000-60000 ( ) e) 60000-100000 ( ) f) More than 100000 ( )

Figure: 5.6.
The above pie chart concludes the income levels of the respondents. There are six
types of income levels like less than the 10000, 10000-20000, 20000-40000, 40000-
60000, 60000-1 lack and more than 1 lack. The majority respondents having, e) group
that is 60000-100000 (46%). And the 37% of respondents having the more than 1 lack
income. 17% respondents having the d group income level (40000-60000). There is
no one in a, b and c group income level respondents.






0%
0%
0%
17%
46%
37%
a)<10000
b)10000-20000
c)20000-40000
d)40000-60000
e)60000-100000
f)>100000
34

PART-B
MEASURING ACCESS TO BANKING
7. Do you know the Banking services?
a) Yes ( ) b) No ( )

Figure: 5.7.
The pie chart includes the awareness of banking services of the respondents. In this
study it concludes that the total respondents are known the banking services. Now a
days every one known the banks and the basic services like deposits and loans. The
banks, RBI and governments are encouraging the banking habit through creating
different types of plans like BSBD account, BC& BF model.






100%
0%
a) YES
b) NO
35

8. Do you have Bank Account?
a) Yes ( ) b) No ( )

Figure: 5.8.
The above pie chart indicates the having bank account of respondents. All most of
all respondents having the bank accounts, who are involved this study. Respondents
having bank accounts because of the all subsides, scholarships, crop loans and SHG
loans given through the banks and co-operatives banks.










a)YES, 100%
b) NO, 0%
a)YES
b) NO
36

9. In which financial institution do you have account?
a) Commercial Bank ( ) b) Co-operative Bank ( ) c) Postal office ( )
d) Micro finance ( ) f) Private Banks

Figure: 5.9.
The above pie chart indicate the financial institution which the respondents having
accounts. It shows that the most of respondents having accounts in commercial banks
of the public sector only. 93% of respondents having the Accounts in commercial
banks.5% of respondents having the account in co-operative banks and in postal
office 2% of respondents having account in postal office. There is no one respondent
have the account in private banks in this location because there is no existence of
private banks.






93%
5%
2%
0% 0%
Commercial bank
Co-operative Bank
Postal office
Micro Finance
Pvt Banks
37

10. Frequency of Bank Visiting?
a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Quarterly ( ) e) Half-yearly ( ) f)
Yearly ( )

Figure: 5.10.
The above pie chart shows the frequency of visiting the banks. There are six types
of visiting groups. In that the most of respondents (65%) were visits the bank in
monthly once because, SHG groups, pensioners and loan creditors compulsory visit
the monthly once. 25% of respondents of this study visit the bank weekly once. The
formers and other visit the banks mostly at begin of the agriculture.








1%
25%
65%
7%
2%
0%
a)Daily
b)Weekly
c)Monthly
d)Quartely
e)Half yearly
f)Yearly
38

11. Do you know the following services provided by your bank?
a) Deposits ( ) b) Loans ( ) c) NEFT ( ) d) Locker facility ( ) e) ATM ( )
Table No: 5.1.
SERVICES YES NO
Deposits 99 1
Loans 99 1
NEFT 28 72
Locker facility 41 59
Insurance 26 74
ATM 66 34


The above table and column chart indicated the respondents awareness about the
banking services like deposits, loans, NEFT, locker facility, insurance and ATM
services.
In this project study the 99% respondents had known the deposits and loans
services. ATM (66%) and locker facility (41%) service known by respondents.
NEFT (28%) and bank insurance (26%) service are known the very less respondents.
99 99
28
41
26
66
1 1
72
59
74
34
0
20
40
60
80
100
120
Deposits Loans NEFT Locker Insurance ATM
YES
NO
Figure: 5.11.
39

PART-C
LEVEL OF AWARENESS
12. Level of awareness of banking services:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.2.
Particulars Value
Mean 3.11
Median 3
Mode 3
Standard deviation 0.60126
Count 100

The above table contains the awareness of BANKING SERVICES. The
descriptive statistics indicated that the most of respondents FAIRLY AWARE about
the banking services.
13. Level of awareness of banking services charges:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.3.
Measures Value
Mean 2.35
Median 2
Mode 2
Standard deviation 0.715979
Count 100

The above table states the awareness of BANKING CHARGES. The descriptive
statistics shows that the most of respondents POORLY AWARE about the Banking
Charges.
40

14. Level of awareness of Internet banking:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.4.
Particulars Value
Mean 1.82
Median 2
Mode 1
Standard deviation 0.914308
Count 100

The above table discloses the awareness of INTERNET BANKING. The
descriptive statistics shows that most of respondents DONT KNOW about the
Internet Banking.

15. Level of awareness of Mobile Banking:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.5.
Particulars Value
Mean 1.78
Median 1
Mode 1
Standard deviation 0.938298
Count 100

The above table consist the Awareness of MOBILE BANKING. The descriptive
statistics indicated the most of respondents DONT KNOW about the mobile banking.


41

16. Level of awareness of Debit card / Credit card:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.6.
Particulars Value
Mean 2.65
Median 3
Mode 3
Standard deviation 1.0667187
Count 100

The above table reveals the awareness of ATM CARD/ DEBIT CARD. The
descriptive statistics indicated the most of respondents FAIRLY AWARE about the
ATM card/ DEBIT card.

17. Level of awareness of Bank Mortgage:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
Table No: 5.7.
Particulars Value
Mean 2.17
Median 2
Mode 2
Standard deviation 0.817177
Count 100

The above table contains the awareness of BANK MORTGAGE. The descriptive
statistics indicated that the most of respondents POORLY AWARE about the Bank
Mortgage.

42

18. Overall perception of banking service quality:
a) Normal service ( ) b) Poor quality service ( )
c) Good quality service ( ) d) Better quality service ( )
Table No: 5.8.
Particulars Value
Mean 2.53
Median 3
Mode 3
Standard deviation 0.158467
Count 100

The above table contains the perception of the Respondents about the services of
the banks. The descriptive statistics indicated that the most of Respondents felt that
the banks provided GOOD QUALITY OF SERVICES.











43

PART-D
CHANGES OF FOLLOWING THINGS IN RURAL AREA
AFTER ACCESS TO THE BANKS
19. Change in level of savings of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )


The above table carries the changes in LEVEL OF SAVINGS of the
Respondents. The descriptive statistics indicated that the most of respondents savings
level has been INCREASED after access to the banking services.
20. Change in level of borrowings of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )





The above table contains the changes in LEVEL OF BORROWINGS of the
Respondents. The descriptive statistics shows that the most of respondents
Borrowings has been INCREASED after access to the banking services.
Table No: 5.9.
Particulars Value
Mean 0.84
Median 1
Mode 1
Standard deviation 0.44312
Count 100
Table No: 5.10
Particulars Value
Mean 0.05
Median 0
Mode 1
Standard deviation 0.857233
Count 100
44

21. Change in level of income of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )





The above table includes the changes in LEVEL OF INCOME of the
Respondents. The descriptive statistics disclosed that the most of respondents income
level has been INCREASED after access to the banking services.

22. Change in level of paying capacity of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table consist the changes in level of PAYING CAPACITY of the
Respondents. The descriptive statistics indicated that the most of respondents paying
capacity level has been INCREASED after access to the banking services.


Table No: 5.11.
Particulars Value
Mean 0.71
Median 1
Mode 1
Standard deviation 0.53739
Count 100
Table No: 5.12.
Particulars Value
Mean 0.51
Median 1
Mode 1
Standard deviation 0.64346
Count 100
45

23. Change in level of financial status of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table contains the changes in level of FINANCIAL STATUS of the
Respondents. The descriptive statistics indicated that the most of respondents
Financial Status has been INCREASED after access to the banking services.

24. Change in level of social status of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table holds the changes in level of SOCIAL STATUS of the
Respondents. The descriptive statistics indicated that the most of respondents Social
Status has NO CHANGE even after access to the banking services.

Table No: 5.13.
Particulars Value
Mean 0.51
Median 1
Mode 1
Standard deviation 0.57726
Count 100
Table No: 5.14.
Particulars Value
Mean 0.33
Median 0
Mode 0
Standard deviation 0.603943
Count 100
46

25. Change in level of poverty of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table involves the changes in LEVEL OF POVERTY of the
Respondents. The descriptive statistics indicated that the most of respondents
Poverty level has been DECREASED after access to the banking services.

26. Change in self employment opportunities?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table contains the changes in SELF EMPLOYMENT of the
Respondents. The descriptive statistics indicated that the most of respondents self
employment has NO CHANGE even after access to the banking services.

Table No: 5.15.
Particulars Value
Mean -0.6
Median -1
Mode -1
Standard deviation 0.65131
Count 100
Table No: 5.16.
Particulars Value
Mean 0.4
Median 0
Mode 0
Standard deviation 0.550482
Count 100
47

27. Change in decision making power?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table consist the changes in DECISION MAKING POWER of the
Respondents. The descriptive statistics indicated that the most of respondents
decision making power has NO CHANGE even after access to the banking
services.

28. Change in awareness of banking procedure?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table includes the changes in BANKING PROCEDURE of the
Respondents. The descriptive statistics indicated that the most of respondents
Banking procedures has been INCREASED after access to the banking services.
Table No: 5.17.
Particulars Value
Mean 0.18
Median 0
Mode 0
Standard deviation 0.479478
Count 100
Table No: 5.18.
Particulars Value
Mean 0.74
Median 1
Mode 1
Standard deviation 0.543464
Count 100
48

29. Change in other basic facilities?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table shows the changes in OTHER BASIC FACILITIES of the
Respondents. The descriptive statistics indicated that the most of respondents other
basic facilities has NO CHANGE even after access to the banking services.

30. Change in participation in social/political activities?
a) Increase ( ) b) Decrease ( ) c) No change ( )






The above table reveals the changes in PARTICIPATION IN
SOCIAL/POLITICAL ACTIVITIES of the Respondents. The descriptive statistics
indicated that the most of respondents participation in social/political activities has
NO CHANGE even after access to the banking services.
Table No: 5.19.
Particulars Value
Mean 0.21
Median 0
Mode 0
Standard deviation 0.728843
Count 100
Table No: 5.20.
Particulars Value
Mean 0.01
Median 0
Mode 0
Standard deviation 0.502418
Count 100
49

6.1. FINDINGS
From above analysis I have founded out that.
The above 55 age group people not availed the banking services because of
lack of banking knowledge.
It observed that the most people depended on the agriculture, in rural area.
The 22% of rural area people facing the illiteracy problem..
Almost all the respondents having the bank account but half the respondents
not involved frequently in banking transactions.
The 65% of respondents frequency of visiting bank is very far (monthly once)
It is founded that the half of the respondents doesnt aware the other services
of banking except deposits and loans.
Many respondents dont know the banking charges exactly.
It is founded that the most of respondents dont know the Internet Banking
and Mobile Banking services.
It is observed that the usage of ATM service is gradually increasing.
It is founded that banking services quality in rural area is good.
It is observed that the respondents savings level, income level and financial
status improved after access the banking services.
It is founded that the level of borrowings and paying capacity also improved
after access the banking services.
It is founded that the level of poverty level is steadily decreasing after
accessing the banking services.
It is founded that the even after access the banking services the self-
employment, decision making power and other basic facility.
It is notified that the banking procedure of respondents is also increased.





50

6.2. SUGGESTIONS
From the above analysis I would like to suggest the following to Telangana
government and central government as well as three banks SBH, DGB NDCOB
which leads to further development in Bheemgal mandal.
It is suggested to governments and banks to create the awareness especially
illiterate people and 55 age groups.
It is suggested to government of Telangana to improve the literacy in rural
area.
It is suggested to all the banks of Bheemgal mandal to increase the frequency
of visiting the bank (no, of times) customers.
It suggested to the banks try to improve the banking knowledge and habit of
the people.
The banks also create the awareness about the other services like NEFT,
INSURANCE, and MUTUAL FUND AND STOCK TRADE.
The banks create the awareness about the Mobile banking, Internet banking
and bank mortgage.
The ATM service is most of the respondents using, but the ATM centers dose
not fulfill the customer needs. So it suggested to the DGB and NDCOB to
provide the ATM centers.
It is suggested to the DGB to appoint the BC (business correspondents) in the
remote area.
The financial status of people is good try to keep it by providing the facilities
by the banks.
The banks should provide the facilities to create self employment schemes.





51

6.3. CONCLUSION
From the above analysis it would like to conclude,
From this study it known that the banks which are working in Bheemgal mandal they
implementing the financial inclusion plan like BSBD account BC&BF model etc.
Importance of financial inclusion is increased, because the benefits of the
financial services are not provided to all the people of the society (Bheemgal
mandal).
Inclusive growth is very essential for the rural development of the country.
Various studies examined that there is a close relationship between financial
inclusion and development. But due to the various constraints the inclusive
growth is prohibited such as lack of financial literacy, poverty, lack of
advanced technology etc.
By the implementing the financial inclusion plans in Bheemgal mandal the
development is partly done. The rural people know the banking services by the
financial inclusion plans.
The financial literacy is play vital role in development of individual and
society.
There is a huge need to adopt various strategies for the financial inclusion
such as adaptation of advanced technology, opening up the bank branched in
rural areas, introduction of new saving schemes for low income people etc.






52

APPENDICES
THE EFFECT OF FINANCIAL INCLUSION ON RURAL
DEVELOPMENT
QUESTIONNARIES
PART.A
DEMOGRAPHIC AND SOCIO ECONOMIC CONDITIONS:

Name of the District: Name of the Mandal:
Name of the Village:

1. Name of the Respondent:
2. Gender of the Respondent:
a) Male ( ) b) female ( )
3. Age of the Respondent:
a) 15-25 ( ) b) 25-35 ( ) c) 35-45 ( ) d) 45-55 ( ) e) 55- above ( )
4. Mobile Number of the Respondent:


5. Occupation:
a) Agricultural ( ) b) Cultivator labor ( ) c) Construction labor ( )
d) Industrial labor ( ) e) Small Business ( ) f) Govt Employee ( )
g) Pvt Employee ( ) h) NRIs ( ) i) others ( )
53

6. Education qualification of the Respondent:
a) Illiterate ( ) b) Primary ( ) c) SSC ( ) d) Intermediate ( ) e) UG & PG ( )
7. Size of the Family:
a) Less than 4 ( ) b) 4 members ( ) c) 4-6 members ( ) d) More than 6 ( )
8. Community (cast) of the Respondent:
a) OC ( ) b) BC ( ) c) SC ( ) d) ST ( ) e) others ( )
9. Religion of the Respondent:
a) Hindu ( ) b) Muslim ( ) c) Christian ( ) d) others ( )
10. Annual Income of Respondent:
a) Less than 10000 ( ) b) 10000-20000 ( ) c) 20000-40000 ( ) d) 40000-50000 ( )
e) 50000-100000 ( ) f) 100000 & above ( )
11. Sources of Income of the Respondent:
a) Crop income ( ) b) wage / salary ( ) c) Income from homes ( )
d) Income from business ( ) e) profession Income ( ) f) other sources ( )
12. Holding of Land by Respondent:
a) No land ( ) b) less than 1 Acre ( ) c) 1-2 Acre ( ) d) 2-3Acre ( )
f) 3-4 Acre ( ) g) 4-5 Acre ( ) h) 5 & above ( )
13. Type of House holding by Respondent:
a) Thatched House ( ) b) Roofed House ( ) c) Hut house ( )
d) Govt scheme house ( ) e) Rent house ( )
14. Total Assets value of the Respondent:
a) Less than 1 lack ( ) b) 1-2 lack ( ) c) 2-3 lack ( ) d) 3-4 lack ( )
e) 4-5 lack ( ) f) 5 & above ( )
54

PART.B
MEASURING DEMAND SIDE FINANCIAL INCLUSION
ACCESS TO BANKING
15. Do you know the Banking services?
a) Yes ( ) b) No ( )
16. Distance of banks from their village?
a) Less than 1 KM ( ) b) 1-3 KM ( ) c) 3-5 KM ( )
d) 5-10 ( ) e) More than 10 KM ( )
17. Do you have Bank Account?
a) Yes ( ) b) No ( )
18. If have what type of account?
a) Saving A/c ( ) b) Current A/c ( ) c) Joint A/c ( ) d) No-frill A/c ( ) e) SHG A/c (
)
19. In which financial institution do you have account?
a) Commercial Bank ( ) b) Co-operative Bank ( ) c) Postal office ( )
d) Micro finance Bank ( ) e) other Pvt Ltd Banks ( )
20. What type of ID proofs your submitted?
a) Election ID ( ) b) Ration card ( ) c) Adhar card ( ) d) Driving license ( ) e) other (
)
21. In your family how many having Bank accounts?
a) Only one ( ) b) Two ( ) c) Three ( ) d) Four ( ) e) All ( )


55

22. Frequency of bank visiting?
a) Daily ( ) b) Weekly ( ) c) Monthly ( )
d) Quarterly ( ) e) Half yearly ( ) f) Yearly ( )
23. Do you know the following services provided by your bank?
a) Deposits ( ) b) Loans ( ) c) NEFT ( ) d) Locker facility ( )
e) Insurance ( ) f) ATM services ( )
24. Do you know the rates of interest in your bank?
a) Yes ( ) b) No ( )
25. Do you have ATM card?
a) Yes ( ) b) No ( )
26. Are you utilization of ATM services?
a) Yes ( ) b) No ( )
27. Do you know how to withdraw money from the bank/ ATM?
a) Yes ( ) b) No ( )
28. Who will help to use banking services / ATM services?
a) Family member ( ) b) Friends ( ) c) Existing staff ( ) d) BC staff ( )
29. Do you have Business center & business facility in your village?
a) Yes ( ) b) No ( )
30. Frequency of deposits & withdrawals by account holder?
a) Weekly ( ) b) Monthly ( ) c) Quarterly ( ) d) Half yearly ( ) e) Yearly ( )



56

PART.C
LEVEL OF AWARENESS
31. Level of awareness of banking services:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
32. Level of awareness of banking services charges:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
33. Level of awareness of Internet Banking:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
34. Level of awareness of Mobile Banking:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
35. Level of awareness of Debit card /Credit card:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
36. Level of awareness of Bank Mortgage:
a) Dont know ( ) b) Poorly aware ( ) c) Fairly aware ( ) d) Very fairly aware ( )
37. Overall perception of banking service quality in rural area:
a) Normal service ( ) b) Poor quality service ( ) c) Good quality service ( )
d) Better quality service ( )





57

PART.D
CHANGES OF FOLLOWING THINGS IN RURAL AREA
AFTER ACCESS TO THE BANKS
38. Change in level of savings of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
39. Change in level of Borrowings of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
40. Change in level of Income of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
41. Change in level of paying capacity of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
42. Change in level of financial status of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
43. Change in level of the social status of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
44. Change in the level of poverty of the account holder?
a) Increase ( ) b) Decrease ( ) c) No change ( )
45. Change in self employment opportunities
a) Increase ( ) b) Decrease ( ) c) No change ( )
46. Change in decision making power
a) Increase ( ) b) Decrease ( ) c) No change ( )

58

47. Change in awareness of banking procedure
a) Increase ( ) b) Decrease ( ) c) No change ( )
48. Change in other basic facilities
a) Increase ( ) b) Decrease ( ) c) No change ( )
49. Change in participation in social /political activities
a) Increase ( ) b) Decrease ( ) c) No change ( )



THANK YOU









59

BIBILOGRAPHY
REFERENCE
1. Joseph Massey, Role of Financial Institutions in Financial Inclusion,
FICCIs Banking & Finance Journal 2010
2. Mandira Sarma and Jesim Pais, Financial Inclusion and Development: A
Cross Country Analysis, Indian Council for Research on International
Economic Relations, pp 1-28.2008.
3. Michael Chibba, Financial Inclusion, Poverty Reduction and the millennium
Development Goals, European Journal of Development Research Vol.
21.2009
4. Oya Pinar Ardic Maximilien Heimann Nataliya Mylenko, Access to
Financial Services and the Financial Inclusion Agenda Around the World,
The World Bank, pp 1-17 2011
5. C. Paramasivan and V. Ganeshkumar, Overview of Financial Inclusion in
India, INTERNATIONAL JOURNAL OF MANAGEMENT AND
DEVELOPMENT STUDIES 2013.
6. Rangarajan C, Report of the Committee on Financial Inclusion 2008
7. Chakrabarty K.C, Financial Inclusion in India: Journey So Far and the Way
Forward, Key note address at Finance Inclusion Conclave Organized by
CNBC TV 18 at New Delhi 2013
8. Smt Usha Thorat, Taking Banking Services to the Common Man - Financial
Inclusion. Deputy Governor, Reserve Bank of India at the HMT-DFID
Financial Inclusion Conference 2007, Whitehall Place, London UK, June 19,
2007.
9. Chakrabarty K.C (2011), Financial Inclusion and Banks: Issues and
Perspectives, RBI Bulletin, November, 2011.
10. A.Padma, Dr.Rambabu Gopisetti, FINANCIAL INCLUSION A WAY
FORWARD TO RURAL DEVELOPMENT 2013
11. Leeladhar V, Taking Banking Services to the Common Man Financial
Inclusion, Commemorative Lecture at the FedbankHormis Memorial
Foundation at Ernakulam.2005
60

12. Leyshon, A. and N. Thrift, The Restructuring of the UK Financial Services
Industry in the 1990s: A Reversal of Fortune? Journal of Rural Studies, 9:
22341.1993
13. Ford, J. and K. Rowlingson, Low-Income Households and Credit: Exclusion,
Preference and Inclusion Environment and Planning, 28: 134560 1996
14. Kempson, E. and C. Whyley, In or Out? Financial Exclusion: A Literature
and
Research Review, Financial Services Authority, London 2000
15. Asian Development Bank, Finance for the Poor: Micro-finance Development
Strategy 2000
16. Government of Scotland, Financial inclusion Action Plan, part of the
Scottish executives closing the Opportunity gap approach to tackling poverty
2005.
17. RBI Report on Trend and Progress of Banking in India, 2009-2010.
18. Report of Committee on Financial sector reforms, 2009.
19. Rajan, R.G., & Zingales, L. (1998). Financial dependence and growth.
American Economic Review, 88, 559-86.

WEBSITES
www.adb.org
www.allbankingsolution.com
www.banking.org.za
www.financialservices.gov.in
www.iibf.org.in
www.investpedia.com
www.nabard.org
www.rbi.org.in
www.researchgate.com