Multidimensional Financial Inclusion Index for the Scheduled Tribes of Kerala

Authors

  •   Reshma K. Senior Research Fellow (Corresponding Author), Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore - 641 043, Tamil Nadu
  •   Kanniammal K. Professor and Head, Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore - 641 043, Tamil Nadu

DOI:

https://doi.org/10.17010/ijf/2025/v19i4/174946

Keywords:

multidimensional

, financial inclusion index, weaker section, inclusive growth, scheduled tribes, Kerala

JEL Classification Codes

, G00, G21, O16

Paper Submission Date

, September 15, 2024, Paper sent back for Revision, March 12, 2025, Paper Acceptance Date, March 28, Paper Published Online, April 15, 2025

Abstract

Purpose : The present study aimed to develop a novel financial inclusion index (FII) that could be applied to measure the level of financial inclusiveness of scheduled tribes of Kerala and to estimate and compare the degrees of financial inclusivity among Kerala’s scheduled tribe communities using index values.

Methodology : The study computed the FII for 21 distinct communities of scheduled tribes residing in Kerala by suggesting an exclusive multidimensional index for financial inclusivity.

Finding : The FII showed a minor improvement in a few populations, with the Malappuram and Palakkad tribes having poor financial inclusion. Communities with more financial inclusion typically had higher human development index (HDI) and literacy rates. However, just a handful progressed from weak to mid-inclusion, while low HDI, widespread illiteracy, and insufficient banking facilities hampered higher inclusion levels.

Practical Implications : Structural changes to the policy framework were necessary to ensure that all communities had an equal degree of financial inclusivity and offered monetary services to the poorest of the poor at no cost or a reduced cost in order to promote sustainable, inclusive growth.

Originality : This research introduced a novel multidimensional financial inclusion index (MFII) that was specifically designed to assess the financial inclusion of Kerala’s scheduled tribes, incorporating both supply- and demand-side indicators to deliver a comprehensive evaluation of their financial access and participation.

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Published

2025-04-01

How to Cite

K., R., & K., K. (2025). Multidimensional Financial Inclusion Index for the Scheduled Tribes of Kerala. Indian Journal of Finance, 19(4), 8–23. https://doi.org/10.17010/ijf/2025/v19i4/174946

Issue

Volume 19, Issue 4, April 2025

Section

Articles
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