FINANCIAL INCLUSION IN INDIA : A STUDY OF CHANDIGARH

Abstract

This report focuses on measuring the effectiveness of different initiatives taken by the government and other institutions for the upliftment of the poor people by the means of Financial Inclusion (or, alternatively, financial exclusion) i.e. providing financial facilities to every person. Financial Inclusion has been defined in the literature in the context of a larger issue of social inclusion (or exclusion) in a society. One of the early attempts to define financial exclusion was by Leyshon and Thrift (1995), who defined it as referring to those processes that serve to prevent certain social groups and individuals from gaining access to the formal financial system. Thus, an all inclusive financial system enhances efficiency and welfare by providing avenues for safe and secure practices and by facilitating a whole range of efficient financial services. Through efficient allocation of productive resources, an inclusive financial system increases investment, raises economic growth and promotes capital formation. The data was collected by developing a questionnaire conducting a survey in the slum area of Chandigarh. Then SPSS and chart technique of MS Excel was used to analyze the data. This project aims to measure the effectiveness of the initiatives undertaken to enhance Financial Inclusion by analyzing the responses obtained from the survey and then comparing them to the findings of another survey conducted in a different urban slum. The slum area in Chandigarh was chosen and it was compared to the findings of slum area of Delhi.

It was found that the level of implementation of initiatives to enhance Financial Inclusion of underprivileged people in India is not appropriate and requires creation of awareness among the people.