Financial inclusion in north-eastern region: an investigation in the state of Assam

Abstract

Purpose Access to finance, especially by the poor and marginalized section of the population, is a prerequisite for creating employment opportunities, economic growth, poverty reduction and social cohesion. Access to finance makes transactions quicker, cheaper and safer. Most people around the world having an account in a formal financial institution serve as an entry point into formal financial sector. This study aims to analyze the status of financial inclusion in Assam with respect to demographic penetration, geographic penetration and usage ratio, i.e. credit–deposit ratio. Design/methodology/approach The study covers a period of 12 years from 2007–08 to 2018–19. Both the parametric and non-parametric statistical tools have been used to analyze the various dimensions of financial inclusion. Findings The study clearly indicates that there is a significant difference between Assam and aggregate India in financial inclusion and the status of Assam is somewhat lower as compared to the aggregate financial inclusion status of India. To achieve a satisfactory level of financial inclusion, it is not enough to open a bank account for the excluded people, but banks must look at flexibility and timeliness in services to offer a complete package to this segment of the population. Originality/value The study is a significant attempt to meet the shortcomings and improve banking coverage for achieving financial inclusion.

Financial Inclusion and Financial Performance of Deposit Money Banks in Nigeria

“…Jungo et al (2022) result indicated that there is no statistically significant effect of financial regulation on financial stability in SSA countries. Maity and Sahu's (2021) result indicated that a significant difference between Assam and aggregate Indian financial inclusion and the status of Assam is somewhat lower as compared to the aggregate financial inclusion status of India. Johnpaul and Patience's (2021) result showed that SMEs in Nigeria have access to financial products that are made available by banks and other financial institutions.…”

“…Moreover, competitiveness negatively impacts financial stability, and financial regulation moderates the negative effect of competitiveness on financial stability in SSA and LAC countries. Regarding the practical implications, this study shows that fostering financial inclusion in the countries under study contributes significantly to improving the welfare of households and especially to the stability of the financial system Maity and Sahu (2021). examined financial inclusion in the north-eastern region: 126 Article DOI: 10.52589/AJAFR-RGJVRPCF DOI URL: https://doi.org/10.52589/AJAFR-RGJVRPCF www.abjournals.org financial regulatory oversight, thereby increasing financial inclusion and contributing to poverty reduction and income disparity reduction.…”

“…Several studies were carried out analyzing and comparing the determinants of financial inclusion among regions (Sarma & Pais, 2011;Gupte et al, 2012;Akudugu, 2013;Hassan, 2015;Park & Mercado, 2015;Lotto, 2016;Hillary, 2016;Uddin et al, 2017;Abel et al, 2018;Hussaini & Chibuzo, 2018;Neaime and Gaysset, 2018;Anyanwu et al, 2018;Mdasha et al, 2018;Ojwang & Otinga, 2019;Kapaya, 2019;Kinyua & Omagwa, 2020;Al-Chahadah et al, 2020;Koomson et al, 2020;Singh, 2020;Anastesia et al, 2020;Kamal, 2021;Eze & Alugbuo, 2021;Johnpaul & Patience, 2021;Maity & Sahu, 2021;Naser & Alabassi, 2022;Al-Eitan et al, 2022;Winful et al, 2022). However, most of the previous studies focused on the determinants of financial inclusion in the developing countries of Asia, South America, Europe, North Africa, Sub-Saharan Africa or in countries such as Bangladesh, India, China and Indonesia.…”

Bank branch outreach and access to banking services toward financial inclusion: an experimental evidence

“…Maity and Sahu (2018b) also found existence of financial inclusion disparity between the regions and states in India. Further, Maity (2019), Maity and Sahu (2021) and Ghosh and Sahu (2021) have also found existence of disparity in financial inclusion. Sharma (2016) in her study suggested positive nexus between geographic/demographic outreach of ATMs/branches and growth of Indian economy.…”

Financial Inclusion and Bank Efficiency: Evidence from Data Envelopment Analysis

“…They have calculated FI index for both formal and informal sources of the demand side. In another study, Maity and Sahu (2021a) have measured the FI status of Assam, a north-eastern region state, and compared it with overall India.…”