role of banks in financial inclusion in india

JEL classiﬁcation: E59; G21; G29 Keywords: Financial inclusion; Banking sector; GDP; ATMs; Credit deposit ratio Resumen La inclusión financiera se estáconvirtiendo en un nuevo paradigmad

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Contaduría y Administración xxx (2017) xxx–xxx

www.contaduriayadministracionunam.mx/

Available online at www.sciencedirect.com

www.cya.unam.mx/index.php/cya

Badar Alam Iqbala,b,c,∗, Shaista Samia

aDepartment of Commerce, Aligarh Muslim University, Aligarh, UP, India

bInternational University of Business, Agriculture and Technology, Dhaka, Bangladesh

cGuest Editor, Transnational Corporations Review, Taylor & Francis, UK

Received 1 August 2015; accepted 10 September 2016

Abstract

Financialinclusionisemergingasanewparadigmofeconomicgrowththatplaysmajorroleindriving awaythepovertyfromthecountry.Itreferstodeliveryofbankingservicestomassesincludingprivilegedand disadvantagedpeopleatanaffordabletermsandconditions.Financialinclusionisimportantpriorityofthe countryintermsofeconomicgrowthandadvancenessofsociety.Itenablestoreducethegapbetweenrich andpoorpopulation.Inthecurrentscenariofinancialinstitutionsaretherobustpillarsofprogress,economic growthanddevelopmentoftheeconomy.Thepresentstudyaimstoexaminetheimpactoffinancialinclusion

ongrowthoftheeconomyoveraperiodofsevenyears.Secondarydataisusedwhichhasbeenanalyzed

bymultipleregressionmodelasamainstatisticaltool.Resultsofthestudyfoundpositiveandsignificant impactofnumberofbankbranchandCreditdepositratioonGDPofthecountry,whereasaninsignificant impacthasbeenobservedincaseofATMsgrowthonIndianGDP

JEL classiﬁcation: E59; G21; G29

Keywords: Financial inclusion; Banking sector; GDP; ATMs; Credit deposit ratio

Resumen

La inclusión financiera se estáconvirtiendo en un nuevo paradigmade crecimiento económico que desempe˜na un papel importante en la eliminación de la pobreza del país Se refiere a la prestación

de serviciosbancariosalas masas,incluyendo losprivilegiadosydesfavorecidos enunascondiciones

∗Correspondingauthor.

E-mail addresses:dr.iqbal@monarch-university.ch, ba.iqbal.cm@myamu.ac.in, dr.iqbal@iubat.edu (B.A Iqbal) Peer Review under the responsibility of Universidad Nacional Autónoma de México.

http://dx.doi.org/10.1016/j.cya.2017.01.007

0186-1042/© 2017 Universidad Nacional Autónoma de México, Facultad de Contaduría y Administración This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

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2 B.A Iqbal, S Sami / Contaduría y Administración xxx (2017) xxx–xxx

asequibles La inclusión financiera es una prioridad importante del país en términos de crecimiento económico y avances de la sociedad Permite reducir la brecha entre la población rica y la pobre

Enel escenarioactual lasinstitucionesfinancieras sonlos sólidospilaresdel progreso, elcrecimiento económicoyeldesarrollodelaeconomía.Elpresenteestudiotienecomoobjetivoexaminarelimpacto

delainclusión financiera enelcrecimiento delaeconomía durante unperíodo de7a˜nos Se utilizan datossecundarios quehansidoanalizadospormodeloderegresiónmúltiplecomoherramienta estadís-tica principal Los resultados del estudio encontraron un impacto positivoy significativo del número

desucursalesbancariasylaproporcióndedepósitosdecrédito sobreelPIBdelpaís, mientrasque se observóun impactoinsignificanteenelcasodeloscajerosautomáticosdecrecimiento enelPIBdela India

Códigos JEL: E59; G21; G29

Palabras clave: Inclusión financiera; Sector bancario; PIB; Cajeros automáticos; Relación de depósito de crédito

Introduction

Indiaisacountryof1.2billionpeople,spreadacross29statesandsevenunionterritories Therearearound600,000villagesand640districtsinourcountry.Avastmajorityofthe pop-ulation, especiallyinrural areas,is excludedfromthe easyaccesstofinance (Gounasegaran, Kuriakose, & Iyer, 2013) Forty per cent of the households having bank accounts, but only

38percentofthe117,200branchesofscheduledcommercialbanksareworkinginruralareas Accessibilityoffinancialservicesataffordableandappropriatepriceshasbeenalwaysaglobal issue.Hence,aninclusivefinancialsystemisrequiredwidelynotonlyinIndia,buthasbecome

apolicypriorityinvariouscountries.Financialaccesscansurelyimprovethefinancialcondition andlivingstandardofthepoorandthedeprivedsection.So,RBIhasbeencontinuously stim-ulatingthebankingsectortoextendthebanking networkbothbysettingup ofnewbranches andinstallation of newATMs (Dangi&Kumar, 2013) Financialinclusion meansthe deliv-eryoffinancialservices,includingbankingservicesandcredit,atanaffordablecosttothevast sectionsof disadvantagedandlow-incomegroupswhotendtobeexcluding(Chhabra,2015) Financial inclusiontakes into account the participation of vulnerable groupssuch as weaker sections of the society and low incomegroups, basedon the extent of their access to finan-cialservicessuchassavingsandpaymentaccount,creditinsurance,pensionsetc.(Singhetal.,

2014)

The different financial services include access to savings, loans, insurance, payments and remittancefacilitiesofferedbytheformalfinancialsystem.Thisaspectoffinancialinclusionisof vitalimportanceinprovidingeconomicsecuritytoindividualsandfamilies(Kelkar,2014).India

isonecountrywheretheFinancialStabilityandDevelopmentCouncil(FSDC)haveaspecific mandatefor financialinclusionandfinancial literacy.Thereisaseparate TechnicalGroupon FinancialInclusionandFinancialLiteracyundertheaegisofFSDCwithrepresentationfromall thefinancialsectorregulators.Inordertospearheadeffortstowardsgreaterfinancialinclusion, RBIhasconstitutedaFinancialInclusionAdvisoryCommittee(FIAC)undertheChairmanship

ofaDeputyGovernorfromRBI

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B.A Iqbal, S Sami / Contaduría y Administración xxx (2017) xxx–xxx 3

Deﬁnition

FinancialInclusionisdefinedas“theprocessofensuringaccesstofinancialservicesandtimely andadequatecreditwhereneededbyvulnerablegroupssuchasweakersectionsandlowincome groupsatanaffordablecost”(Rangarajan,2008)inthereportoftheCommitteeonfinancial inclu-sioninIndia.DuringApril2012,WorldBankcarriedoutastudywhichrevealedthatonly9per centindividuals’availsnewloansfrombanksinthepreviousyearand35percentpopulationare havingformalbankaccountsinIndiawhereasinthecaseofdevelopingeconomiesitis41percent

“Financial inclusionistheprocessof ensuringaccesstoappropriatefinancialproducts and servicesneededbyallsectionsofsocietyincludingvulnerablegroupssuchasweakersections andlow incomegroupsatanaffordable costinafairandtransparentmannerby mainstream institutionalplayers”(Chakrabarty,2013).TheaimofFinancialInclusion(FI)istomakeeasy accessoffinancialservicestothelargeunderprivilegedpopulationofthecountry.Itisanattempt for achievinginclusivegrowthofthesocietybymakingavailabilityoffinancetothedeprived sectionofpopulation.Inordertoreapthebenefitsofthefinancialservices,lotofmeasureshas beentakenbyGovernmentofIndiainthefavourofpoorandneglectedsectionofthesociety

Factors affecting access to ﬁnancial services

FinancialInclusion,ontheonehand,isaprocessaimingatprovidingbankingserviceslike savingaccount,creditfacility,andinsuranceproducttoweakersectionsofthesociety.Whileonthe otherhand,itreferstotheobjectiveofensuringfinancialservices(banking,insurance,andcapital marketservices)andtimelyandadequatecredittoeverysectionofthesocietyaswellasofthe economy.Accesstofinancialserviceshasbeenrecognizedasanimportantaspectofdevelopment andmoreemphasisisgiventoextendingfinancialservicestolow-incomehouseholdsasthepoor lacktheeducationandknowledgeneededtounderstandfinancialservicesthatareavailableto them Thelack of financialaccess limits therange of services andcreditsfor household and enterprises.Althoughthereissomeevidencethataccessisimprovingbutstilltherearemultiple factorswhichhaveaffectedtheaccesstofinancialservices

Place of living

Mostofcommercialbanksoperateonlyincommercialareasandthesebankssettheirbranches

inprofitableareas.Hencepopulationlivesinruralareasfindit difficulttoaccessthefinancial services.Althougheffectivedistanceisasmuchabouttransportationinfrastructureas physical distance,factorslikedensityofpopulation,ruralandremoteareas,mobilityofthepopulation(i.e., highlymobilepeoplewithnofixedorformaladdress)etc.alsoaffectaccesstotheseservices

Absence of legal identity and gender biasness

Minorities,economicandpoliticalmigrants,refugeeworkersandwomen’sareexcludedfrom accessingfinancialservicesduetolackoflegalidentitiessuchasoriginalbirthcertificatesand identitycards Itisgenerallydifficulttoaccesscreditfacilities forthosefemales,whodonot possess property andassets.They also needed male guarantee toaccess the credit from any financialinstitutions

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Limited knowledge of ﬁnancial services

Incomplete basiceducation andfinancial literacyare the majorhurdles inorderto access various financial services to the individuals They do not Know the significance of different financialproducts i.e.,bankaccounts,chequefacility,bankloanor overdraftandinsurance.If peoplehavingproperfinancialliteracy,itboostuptheuseofmanyfinancialproductsbydifferent economicagentslikeBusinessCorrespondents,NGOsandMFIsandetc

Level of income and bank charges

Financialprominenceofpeopleisalwaysplaysapivotalroleinaccessingavailablefinancial services.Itisimpossibleforpoorpeopletoaccessfinancialservicesevenwhentheseservicesare madeforlowerincomelevelgroup.MoreoverinIndia,alotofhiddenbankchargeswhichhas beendemotivatedpoorpersonsinavailingtheseservices

Rigid terms and conditions

Peoplearealsoleast interestedusingsuch typeoffinancial productsor serviceswhichare attachedwithsomeinflexibletermsandconditions.Manyfinancialinstitutionshavingdifferent rulesrelatingwiththeuseofaccountslikeminimumbalancerequirements

Type of business

Natureofoccupationalsoanimportantfactorinavailingthefinancialservices,whetheritis smallscale,largescale,organizedandunorganizedfirm.Mostofthebanksdonotpreferredthe smallborrowersandunorganizedenterpriseforgivingloans.Hencetheseloanapplicationstends

toberejected

Review of literature

Manystudies(Aghion&Bolton,1997;Banerjee&Newman,1993;Banerjee,2001)discussed that access tofinance hasbeen seenas acritical factorinenabling people totransform their production,employmentactivitiesandtoexitpoverty.Researchershavebeenarguedthatthevery fundamentalactivityofthebankingsector,deliveryofcredit,areessentialtoboostanyeconomic activityandenablesthegenerationofcapabilities(Sen,2000).DangiandKumar(2013)examined theinitiativesandpolicymeasurestakenbyRBIandGovernmentofIndia.Thisstudyalsofocused

oncurrentstatusandfutureprospectsoffinancialinclusioninIndia.Ithasbeenconcludedthat financialinclusionshowsprogressiveandvaluablechangesbutsufficientprovisionsshouldbe incorporate inthe businessmodel tocertify that the poorare not drivenawayfrom banking

Suryanarayana(2008)focusedondefinitionofinclusion/exclusionwithreferencetoanoutcome scenarioforbroad-basedgrowthasreflectedinestimatesofproduction,income,andconsumption distribution.Thestudyhelpsindrawingasketchofoccupational,social,regionalprofilesofthe excluded inthe mainstream growthprocess Hence researcher made an attempt toprovide a perspective,ameasureofinclusion,andfinallyanevaluationbasedontheavailableestimatesof consumptiondistributionfortheyear2004–2005forIndia.Agrawal(2008)studiedthefinancial inclusionfromthebehaviouralperspectivebasedonbothfactorssupplyanddemandend.Results revealedthatevaluationfromthebehaviouralperspectiveprovidedthescopeforthepolicy-makers

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andmarketerstostrategicallyaligntheirapproachwiththebehaviouralaspect,withoutconfining theirthoughtstotheeconomicalevaluations

On theotherhand,in2003,the RBIpolicyoffinancial inclusionwastoprovideaccess to financial service totheunderprivilegedcould beearmarkedas anotherboldinitiativein serv-ing the rural transects targeting inclusive growth Committee on financial inclusion in2008 (RangarajanCommittee)observedthatfinancialinclusiontohithertoexcludedsegmentsofthe populationwascriticaltosustainandaccelerategrowthmomentum.Forachievementofthe objec-tive,thecommitteehadputforwardmulti-prongedstrategiesincludeestablishmentofNational missiononfinancialinclusion,revitalizingtheRRBsandCooperatives,introducingMFImodel (SHG-banklinkage)andBusinessFacilitatorandBusinessCorrespondentsModel.Mukherjee andChakraborty(2012)studiedthe roleandefficiencyof thecommercialbanksinJharkhand statewiththeircapacityandroleofinstitutionslikeregionalruralbanks(RRBs),self-helpgroups (SHGs),non-bankingfinancialcompanies(NBFCs)forthepurposeofpromotingfinancial inclu-sion.Theresultsofanalysisshownthatbankswerenotabletoachievethedesiredaimsandstudy suggestedthat everybankshouldreports totheRBIonitsachievementonfinancialinclusion morefrequently.UmaandRupa(2013)madeanattempttoexaminetheroleofSHGsinfinancial inclusionandreflectedthepositiverelationshipbetweenSHGsmembershipandfinancial inclu-sion.Thestudyrevealedthatafter themembershiptoSHGstherewasincreaseinthe number

ofbankaccounts,creditavailedbythemembersandannualrepaymentoftheloanalsoshown positivetrend

Joseph andVarghese(2014)analyzedthe effectof financial inclusionon the development

of Indianeconomybybank growthrateintermsof numberofbank branches,usageofdebit cardandcreditcards.Ithasbeenobservedthattheusageofdebitcardsincreasedtremendously throughoutthestudyperiodanddecreasedthenumberofpeoplewithaccesstotheproductsand servicesofferedbythebankingsystemcontinuestobeverylimited,evenyearsafterintroduction

of inclusivebankinginitiativesinthecountry Ravikumar(n.d.) madeanattempttoassessthe role ofbanking sectorinfinancial inclusionprocessfromdifferentviewpointsnamely branch penetration,ATMpenetration,populationperbranch,distributionofbankingbranches,credits, depositsof SCBsandCo-operativebanksinIndia.Thisstudy revealedthatbankingisakey driverforfinancialinclusion/inclusivegrowthbutlargeproportionofpopulationexcludedfrom theformalfinancialsystemalsoshowhigherpovertyratiosandhigherinequality.Paramasivan andGaneshkumar(2013)discussedtheoverviewoffinancialinclusioninIndiaandconcluded that branch density hasa significant impactonfinancial inclusion.Julie (2013)analyzed the relationshipbetweenfinancialinclusionandeconomicgrowthinKenyaandfoundthatbothhave

astrongpositiverelationship.Economicgrowthhasastrongpositiverelationshipwithbranch networks andaweakpositiverelationshipwiththe numberof mobilemoney users/accounts The studyalso concludedtheweaknegativerelationshipwiththe numberofautomated teller machinesinthecountryandastrongnegativerelationshipwiththebanklendinginterestrates StudyconductedinIndiabyKamboj(2014)foundoutthepositiverelationshipbetweennumber

ofbankbranchnetworksandnumberofATMsinthecountrywiththeGDPgrowthrateofthe country

Research gap

Financialinclusionisanimportantsteptowardsinclusivegrowth.Ithelpsintheoverall eco-nomic developmentofthe underprivilegedpopulation.InIndiaeffective financialinclusionis needed for upliftment of the poor anddisadvantaged people byproviding themthe modified

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financialproducts andservices.Thisleadstoinclusivegrowthencompassingthedeprivedand marginalizedsections.Somestudiesaredoneonthefinancial inclusionbyanalyzingselected banksandotherworkhasbeenfoundonstatewisegrowthoffinancialinclusion.Afewstudies havebeenanalyzedtheimpactoffinancialinclusiononIndianeconomicgrowthandfoundmixed results.Withthisbackdrop,thisresearchstudyisanattempttofindoutthepresentscenarioof financialinclusioninIndiaandassessingtheroleoffinancialinclusionineconomicgrowthof thecountry

Objectives

1 ToexaminepresentscenariooffinancialinclusioninIndia

2 Toinvestigatethemajorfactorsaffectingaccesstofinancialservices

3 TostudytheimpactoffinancialinclusionindicatorsongrowthofIndianeconomy

Research methodology

ThisstudyisbasedonsecondarydatathatwasmainlycollectedfromReportofRBI,Ministry

ofFinance,GovernmentofIndia,ReportsontrendandprogressofbankinginIndia,Newspapers, ResearchArticles,ResearchJournals,E-Journals,BooksandMagazines.Variouswebsiteswere also used like RBI, Ministry of Finance, and Government of India(GoI) The period under considerationforthestudyissevenyearsfrom2007–2008to2013–2014.Datahasbeenanalyzed

byapplyingmultipleregressionasamainstatisticaltool.Multipleregressionanalysishasbeen usedtoestablishanempiricalrelationshipbetweenFinancialInclusionandgrowthofthecountry ThepresentstudytakingGrossDomesticProduct(GDP)asadependentvariableandindependent variablesareNumberofBankBranchesinthecountry,ATMsgrowthrateacrossthecountryand Creditdepositratio

whereY=GrossDomesticProduct(GDP)

X1=NumberofBankBranches

X2=ATMsgrowthrate

X3=Creditdepositratio

Hypothesis of the study

Onthebasisoftheobjectivesofthestudy,followinghypothesishasbeenformulated:

H 0 1. ThereisnosignificantimpactoffinancialinclusiononthegrowthofIndianeconomy

H A 1. ThereisasignificantimpactoffinancialinclusiononthegrowthofIndianeconomy

Sub-hypotheses

H 0 1.1. ThereisnosignificantimpactofNumberofbankbranchesonIndianGDP

H A 1.1. ThereisasignificantimpactofNumberofbankbranchesonIndianGDP

H 0 1.2. ThereisnosignificantimpactofATMgrowthonGDPofIndianeconomy

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H A 1.2. ThereisasignificantimpactofATMgrowthonGDPofIndianeconomy

H 0 1.3. ThereisnosignificantimpactofCreditdepositratioonGDPofIndianeconomy

H A 1.3. ThereisasignificantimpactofCreditdepositratioonGDPofIndianeconomy

Financial inclusion and Indian banking network

The RBIhasencouragedbankstoimplementaplannedandstructuredFinancialInclusion Plans(FIPs)forthegrowthanddevelopmentofthecountry.ThefirstphaseofFIPswascovered

atimeperiodofthreeyearswhichhasstartedfrom2010andendsin2013.FIPshavebeenused

byReserveBankofIndia(RBI)formeasuringthebanksperformanceundertheirFIinitiatives

Table1displaysthatalargenumberofbankaccountshavebeenopenedduringthisperiodand shapedabigbankingnetworkacrossthecountry.Despite,theresultsoffirstFIPwitnessedthat therehasbeeninsignificantimprovementoperationsintermsoftransactions.Hence,bankswere instructedtodrawupnewthree-yearFIPfrom2013to2016forensuringmeaningfulaccessof financialservices

AsnapshotoftheperformanceofbanksunderFIPuptoMarch31,2014is:

Table 1

Financial inclusion plan and its performance evaluation.

1 Banking Outlets in Villages – Branches 33,378 40,837 46,126 5289

2 Banking Outlets in Villages – Branchless

Mode

34,316 227,617 337,678 110,061

3 Banking Outlets in Villages – Total 67,694 268,454 383,804 115,350

4 Urban Locations covered through BCs 447 27,143 60,730 33,587

5 Basic Savings Bank Deposit Account

(BSBDA) through branches (No in million)

(BSBDA) through branches (Amt in Rs.

billion)

(BSBDA) through BCs (No in million)

(BSBDA) through BCs (Amt in Rs billion)

10 BSBDA Total (Amt in Rs billion) 55.0 183 312 129

11 OD facility availed in Basic Savings Bank

Deposit Account (No in million)

12 OD facility availed in Basic Savings Bank

Deposit Account (Amt in Rs billion)

14 KCCs-Total (Amt in Rs billion) 1240.1 2623 3684 1061.0

16 GCC-Total (Amt in Rs billion) 35.1 76 1097 1021.0

17 ICT A/Cs-BC Total Transactions (No in

million) during the year

18 ICT A/Cs-BC Total Transactions (Amt in

Rs billion) during the year

Source:Based on different issues of Reserve Bank of India (RBI).

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Table 2

Bank group and population group wise number of functioning branches as on December 31, 2014.

Source: Reserve Bank of India.

Thenumberofbankingoutletswere115,350openedduringtheperiodof2013–2016which hasbeenincreasedupthetotalnumberofoutletsnearly384,000.ItisdemonstratedbyTable1

thatthenumberofBCsoutletsopenedinurbanareashaveincreasedupto60,730intheyearof

2014outofwhich33,587outletsopenedduringtheyear2013–2014.Itisasignificantincrement

innumberofBCsoutlets.Duringtheyear2013–2014thenumberofbasicsavingsbankdeposit accounts(BSBDAs)openedwere60.9millionandtotalnumberofBSBDAsreachedupto243 million

Thenumberofsmallfarmsectorcreditsrecordedagrowthof40millionin2013–2014out

ofthese6.2millionKCCsrecordedduringtheyear2013–2014.Alongwiththatthenumberof smallnon-farmsectorcreditcardswere3.8millionduring2013–2014andtotalnumberwas7 millionoverthewholeperiodofFIP.Table1furtherrevealedthatthe329milliontransactions werecarried outinBC-ICT accountsatthe endofMarch 2014andrecordedagrowthof 79 milliontransactionsin2013–2014

Table2showstheBankgroupaswellaspopulationgroupwisenumberofbankbranchesin Indiaason2014.Fromthetableitisclearthatallthebankgroupsoperatemoreinruralareas exceptprivateandforeignbanks.Thesegroupsdominateinmetropolitanareawithmorebranches comparedtootherarea

Fig.1 shows the Bankgroupas wellas population wise growthtrend of numberof bank branchesovertheIndiaason31stDecember2014.ItisclearfromthegraphthatSBIandits associates,publicsectorandregionalruralbanksareoperatesmoreinruralareascomparedto others The overallgrowth inruralandsemi urban areasiscomparatively morecomparedto urbanandmetropolitan.Theprivatesectorbanksdominateinsemi-urbanareaswith6155bank brancheswhereasforeignbanksdominateinmetropolitanarea.Thetotalnumberoffunctioning bankbranchesare122,294acrossthecountry

Data analysis

GDPisanimportanteconomicindicatortofindoutthegrowthofacountryanditiswidely usedbyresearchers(Chithra&Selvam,2013;Kamboj,2014).Fig.2illustratesGrossDomestic Product(GDP)ofIndiaduringaperiodofsevenyearsstartingfromthefinancialyear2008–2009

tothefinancial year2013–2014.GDPhasbeenon continuousincreaseduring thesefinancial years.In2008–2009GDPrecorded4582,086,itwasnotedatalevelof5303,567infinancialyear 2009–10(anincreaseof15.75%fromthepreviousfinancialyear).GDPshows18.7%growthin theyear2010–2011,whichisthehighestgrowthovertheperiodoftime(Table3)

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0

5000

10 000

15 000

20 000

25 000

SBI and its

associate s

Nationalis ed bank s

Other publi c sector banks

Private s ector bank s

Foreign bank

Rural Se mi urban Urban Met rop oli tan

Regional r ural bank s

Fig 1 Group wise bank branches.

Source:Prepared by Author.

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

2013-14

2012 -13

2011 -12

2010 -11

2009 -10

2008 -09

2007 -08

Fig 2 Gross Domestic Product (GDP).

Fig.3showsthetrendofnumberoffunctioningbranchesofScheduledCommercialBanks (SCBs)inthecountry.Itisclearfromthegraphthatbankbranchesshowinganincreasingtrend over theperiod of seven year.Therewere61,132 bankbranchesin2007–2008 that hasbeen increasedupto117,200in2013–2014.Thehighestgrowth(31.2%)hasbeenmarkedduringthe

Table 3

Variables of the study.

Years GDP No of Bank branches ATMs growth Credit deposit ratio

Source:Compiled on the basis of different publication of RBI.

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0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

8 7 6 5 4 3 2 1

Fig 3 Number of bank branches.

year2008–2009andlowestgrowth(4.1%)recordedintheyear2012–2013innumberofbank branchesacrossthecountry

Thestudy alsocovered theAutomaticTellerMachines (ATMs)inIndiaas anindicatorof financialinclusiongrowth.ThenumberofATMshascontinuouslyincreasingfromthefinancial year2007–2008tothefinancialyear2013–2014.Fig.4depictsgrowthrateofATMsacrossthe countryand40.38%maximumgrowthhasbeennoticedduringtheyear2013–2014.Minimum growthhasbeenobservedin2012–2013anditisdroppedfrom28.43%to19.5%

Fig.5demonstratesthecreditdepositratioduringtheperiodofsevenfinancialyearswhich

isstartedfrom2007–2008to2013–2014.Theremarkablegrowthhasbeenobservedintheyear 2011–2012andmaximumdeclinedrecordedin2008–2009.Creditdepositratioisslightlyfellin duringtheyears2012–2013and2013–2014

0 5 10 15 20 25 30 35 40 45

2013-14

2012 -13

2011 -12

2010 -11

2009 -10

2008 -09

2007 -08

Fig 4 ATMs growth.

68 70 72 74 76 78 80

2013-14

2012 -13

2011 -12

2010 -11

2009 -10

2008 -09

2007 -08

Fig 5 Credit deposit ratio.

Tiêu đề	Role of Banks in Financial Inclusion in India
Tác giả	Badar Alam Iqbal, Shaista Sami
Trường học	Aligarh Muslim University
Chuyên ngành	Finance/Economics
Thể loại	research article
Năm xuất bản	2017
Thành phố	Mexico City

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Số trang	13
Dung lượng	459,55 KB