An Investigation Into Factors Affecting Access to Financial Services in Farmers' Suicide Prone Bundelkhand Region of India

Authors

  •   Priyanka Yadav Research Scholar, Department of Management Studies, IIT Roorkee, Roorkee -247 667, Uttarakhand
  •   Anil K. Sharma Associate Professor, Department of Management Studies, IIT Roorkee, Roorkee -247 667, Uttarakhand

DOI:

https://doi.org/10.17010/ijf/2018/v12i6/128135

Keywords:

Access To Financial Services

, Financial Inclusion, Banking Institutions

C43

, G21, G38

Paper Submission Date

, December 23, 2017, Paper sent back for Revision, May 15, 2018, Paper Acceptance Date, May 24, 2018.

Abstract

Finance is the basis of all economic activities. The importance of access to finance by one and all on an equitable basis for sustainable development of a nation has been well documented in the literature. However, mere opening of a savings account cannot serve the purpose of complete financial inclusion unless the financial services are used on a regular basis by the people. In this context, this paper made an attempt to study factors which are associated with financial inclusion by way of two parameters - using a bank account for deposit/withdrawal and using credit from institutional sources in rural India. For this purpose, data were collected from Bundelkhand region of India where farmer suicides is one of the most burning issues. The results showed that gender, age, and size of landholding were statistically significant in predicting the probability of an individual being financially included or not.

Downloads

Download data is not yet available.

Downloads

Published

2018-06-01

How to Cite

Yadav, P., & Sharma, A. K. (2018). An Investigation Into Factors Affecting Access to Financial Services in Farmers’ Suicide Prone Bundelkhand Region of India. Indian Journal of Finance, 12(6), 46–62. https://doi.org/10.17010/ijf/2018/v12i6/128135

Issue

Volume 12, Issue 6, June 2018

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

References

Allen, F., Demirgüç-Kunt, A., Klapper, L., & Peria, M. S.M. (2012). The foundations of financial inclusion: Understanding ownership and use of formal accounts (World Bank Policy Research Working Paper No. 6290). Washington D.C. : The World Bank.

Anderloni, L., Bayot, B., Bledowski, P., Iwanicz-Drozdowska, M., & Kempson, E. (2008). Financial services provision and prevention of financial exclusion. Brussels : European Commission.

Basu, P. (2005). A financial system for India's poor. Economic and Political Weekly, 40 (37), 4008 - 4012.

Bhanot, D., Bapat, V., & Bera, S. (2012). Studying financial inclusion in North - East India. International Journal of Bank Marketing, 30(6), 465 - 484. DOI:10.1108/02652321211262221

Cano, C., Esguerra, M., García, N., Rueda, L., & Velasco, A. (2013). Acceso a Servicios financieros en Colombia [Access to financial services in Colombia]. Borradores de Economía No. 776. Retrieved from http://www.banrep.gov.co/es/borrador-776

Chaudhuri, S., & Gupta, M. R. (1996). Delayed formal credit, bribing and the informal credit market in agriculture: A theoretical analysis. Journal of Development Economics, 51(2), 433 - 449. DOI:10.1016/S0304-3878(96)00407-5

Chibba, M. (2009). Financial inclusion, poverty reduction and the millennium development goals. European Journal of Development Research, 21(1), 213 - 230. DOI:10.1057/ejdr.2008.17

Datta, S., & Ghosh, A. (2013). Explaining access to credit by rural households: Results based on a study of several states in India (W.P. No. 2013-02-03). Retrieved from https://web.iima.ac.in/assets/snippets/workingpaperpdf/8285814642013-02-03.pdf

Dev, S. M. (2006). Financial inclusion: Issues and challenges. Economic and Political Weekly, 41 (41), 4310 - 4313.

Devlin, J.F. (2009). An analysis of influences on total financial exclusion. The Service Industries Journal, 29 (8), 1021-1036. DOI: 10.1080/02642060902764160

Gershon, F., Onchan, T., & Raparla, T. (1988). Collateral, guarantees and rural credit in developing countries: Evidence from Asia. Agricultural Economics, 2 (3), 231-245. DOI:10.1016/0169-5150(88)90005-9

Goodwin, D., Adelman, L., Middleton, S., & Ashworth, K. (2000). Debt, money management and access to financial services: Evidence from the 1999 PSE survey of Britain (Working Paper 8). Bristol: University of Bristol.

Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River : New Jersey : Pearson Education.

Hoda, A., & Terway, P. (2015). Credit policy for agriculture in India - An evaluation (Working Paper No. 302). Retrieved from http://icrier.org/pdf/Working_Paper_302.pdf

Hogarth, J. M., & O’Donnell, K.H. (1997). Being accountable: A descriptive study of unbanked households in the US. Proceedings of the Association for Financial Counselling and Planning Education. Retrieved from http://www.frbatlanta. org/invoke.cfm? objectid=DC6ADC028061-11D5-897D00609459DBE6&method= display

Hogarth, J.M., & O’Donnell, K.H. (2000). If you build it, will they come? A simulation of financial product holdings among low-to-moderate income households. Journal of Consumer Policy, 23 (4), 419 - 444. DOI:10.1023/A:1007222700931

Ibrahim, S. S., & Aliero, H. M. (2011). An analysis of farmers’ access to formal credit in the rural areas of Nigeria. African Journal of Agricultural Research, 6 (17), 6249 - 6253.

Johnson, S. (2004). Gender norms in financial markets: Evidence from Kenya. World Development, 32 (8), 1355 - 1374. DOI: 10.1016/j.worlddev.2004.03.003

Jumrani, J., & Agarwal, S. (2012). Outreach and inclusiveness of formal agricultural credit system: Some reflections. Agricultural Economics Research Review, 25, 445 - 460.

Kaino, T. (2005). Rural credit market in Myanmar: A study of formal and non-formal lenders. Asian Journal of Agricultural Development, 4(1), 3 -15.

Karp, N., & Nash-Stacey, B. (2015). Technology, opportunity & access: Understanding Financial Inclusion in the U.S. (Working Paper No. 15/25). Retrieved from https://www.bbvaresearch.com/wp-content/uploads/2015/07/WP1525_FinancialInclusion_MSA.pdf

Kempson, E. (2006). Policy level response to financial inclusion in developed countries: Lessons for developing countries. Paper presented at the Conference : Access to Finance: Building inclusive financial systems. May 30 - 31, 2016. Washington DC : World Bank.

Leyshon, A., & Thrift, N. (1995). Geographies of financial exclusion: Financial abandonment in Britain and the United States. Transactions of the Institute of British Geographers, 20(3), 312 - 341. DOI : 10.2307/622654

McKinnon, R.I. (1973). Money and capital in economic development. Washington, DC : Brookings Institution Press.

Pal, D., & Laha, A. K. (2014). Credit off-take from formal financial institutions in rural India: Quantile regression results. Agricultural and Food Economics, 2(1). DOI :10.1186/s40100014-0009-y

Pradhan Mantri Jan Dhan Yojana. (2018). Progress report. Retrieved from https://www.pmjdy.gov.in/account

Ramji, M. (2009). Financial inclusion in Gulbarga: Finding usage in access (Working Paper Series No. 26). Chennai : Institute for Financial Management and Research.

Reddy, A. A. (2012). Structure of indebtedness of households in semi-arid tropics of India. Agricultural Economics Research Review, 25, 473 - 483.

Reddy, C.V. (2016). 12 pillars' framework for successful financial inclusion in India. Indian Journal of Finance, 10 (12), 7 - 28. doi:10.17010/ijf/2016/v10i12/106878

Sathiyan, S., & Panda, P. K. (2016). Financial inclusion in India : An analysis of pattern and determinants. Indian Journal of Finance, 10 (4), 41-53. doi:10.17010/ijf/2016/v10i4/90799

Sebopetji ,T.O., & Belete, A. (2009). An application of probit analysis to factors affecting small-scale farmers’ decision to take credit: A case study of Greater Letabo Local Municipality. South African Journal of Agricultural Research, 4 (8), 718 - 723.

Sen, V., & Prajapati, H. R. (2013). Credit accessibility of small and marginal farmers in Bundelkhand. IJHPD India, 2 (2), 42-50.

Sharma, D. (2016). Nexus between financial inclusion and economic growth: Evidence from the emerging Indian economy. Journal of Financial Economic Policy, 8 (1), 13 - 36. DOI: 10.1108/JFEP-01-2015-0004

Shehu, A. Y. (2012). Promoting financial inclusion for effective anti-money laundering and counter financing of terrorism (AML/CFT). Crime, Law and Social Change, 57 (3), 305 - 323. DOI: 10.1007/s10611-011-9351-0

Siddik, M. N. A., Sun, G., & Kabiraj, S. (2015). Financial inclusion and its determinants: A study of Bangladesh. Indian Journal of Finance, 9(6), 7 - 29. doi:10.17010/ijf/2015/v9i6/70988

The World Bank. (2003). Sustainable development in a dynamic world - Transforming institutions, growth, and quality of life. Washington DC : The World Bank.

The World Bank. (2008). Finance for all - Policies and pitfalls in expanding access (World Bank Policy Research Report). Washington DC : The World Bank.

Tripathi R., Yadav, N., & Shastri, R. K. (2016). Financial inclusion in India through Pradhan Mantri Jan Dhan Yojana : An empirical analysis of statistical evidence. Indian Journal of Finance, 10 (10), 42 - 55. doi:10.17010/ijf/2016/v10i10/103014

Verma, A. K. (2011). Farmers’ suicides and statehood demand in Bundelkhand. Economic and Political Weekly, 46 (28), 10 -11.

Verma, Y., & Garg, P. (2016). Pradhan Mantri Jan Dhan Yojana (PMJDY): A step towards eradicating financial untouchability. Indian Journal of Finance, 10 (1), 56 - 64. doi:10.17010/ijf/2016/v10i1/85845