A District Level Analysis of the Status of Financial Inclusion in Assam, India: Implications for Social Development Policies and Programmes

Abstract

In recent years, India has placed a greater emphasis on the issue of financial inclusion. The purpose of this research is to assess the current status of financial inclusion in the various districts of Assam, India. A financial inclusion index is developed for each district in Assam by using data pertaining to three key dimensions of financial inclusion: banking penetration, availability of banking services and usage of banking services. The findings indicate that despite several initiatives to provide financial services to all, the success of financial inclusion in Assam is still far from satisfactory. Significant disparities exist in the extent of financial inclusion across the districts in Assam. While a few districts have achieved considerable success, the achievements of the majority of districts are unsatisfactory. The regression analysis indicates that literacy has a significant effect on such disparities in financial inclusion. The study argues that to enhance the efficacy and success of financial inclusion, all stakeholders need to make a concerted effort with a social development perspective.

Editorial

“…In addition to charging high interest rates, local money lenders harass tribal people if there are defaults or delays in repayment. Like Kazi and Shemim (2023) have found in their study, this article also shows how tribal people are excluded from formal financing systems due to fear, access issues or documents/credit worthiness required. It reminds me of Nobel laureate Muhammad Yunus' famous quote: '…the question will not be "Are people credit-worthy", but rather, "Are banks people-worthy?"'.…”