OPERATIONAL EFFICIENCY OF FINANCIAL

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facility of SB a/c's to all the unbanked. Statement of the Problem. Social & Economic position, low-income people normally do not feel the need to bank.
Vol . IV : Issue. 17

ISSN:0975-9999 Available online at www.selptrust.org SELP Journal of Social Science ISSN : 0975-9999 Vol IV : Issue. 17 July - Septemper 2013

OPERATIONAL EFFICIENCY OF FINANCIAL INCLUSION IN PUDUCHERRY V. Ganeshkumar, Ph. D Full Time Research Scholars

Dr. C. Paramasivan, Assistant Professor & Research Supervisor PG & Research Department of Commerce, Periyar E. V. R. College, Trichy – 23, Tamil Nadu

ABSTRACT Every man needs certain amount of money to meet their requirements and in some cases; men need money to meet his basic needs life food, shelter, cloth etc. This is the basic concept of the human begins to earn up to the maximum level and save up to sufficient level. In this regards banking industries performed well and concentrated in all the walk of human beings. In India, banking sector have an old age concept and involve long evolutionally history since 1850’s. Now it has diversified into commercial banks, development banks, investment banks etc. Commercial banks are well known institutions which are closely associated with the soc io-economic development of the nation. In this regard, Financial Inclusion play a key role in the field of rural development and how it can be implemented effectively through Indian Bank in the selected district is study in this research. This study focus on operational efficiency of financial inclusion in Puducherry

Key words: Inclusive growth, Financial inclusion, Borrowers, Banking services. families find it more difficult to save and to plan financially for the future. Thus, the unbaked public is largely cut off from the Banking products/services. It is the endeavor of the Bank to provide the basic banking facility of SB a/c’s to all the unbanked.

Introduction Financial inclusion is an innovative concept which makes alternative techniques to promote the banking habits of the rural people because, India is considered as largest rural people consist in the world. Financial inclusion is aimed at providing banking and financial services to all people in a fair, tr anspar ent and equitable manner at affordable cost. Households with low income often lack access to bank account and have to spend time and money for multiple visits to avail the banking services, be it opening a savings bank account or availing a loan. These SELP Journal of Social Science

Statement of the Problem Social & Economic position, low-income people normally do not feel the need to bank as the transaction carried out by them is mostly in cash that too with low amount. Secondly, many times people do not want to disclose the information which would be required for accessing any financial service. 84

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Thirdly, poor people, mostly, do not have any identification/introduction, which is accepted by banks to open an account (or) access other financial ser vices. Four thly, lack of understanding of financial services and the oper ations to be car r ied out is also a hindrance. Fifthly, poor people do not have much absorptive capacity for all the financial services. Need for different financial services. Finally, the spread of customers is very thin which makes the operation of reaching out to them a costly affair.

Sampling Design There are 23 Public Sector Banks, 13 Private Sector Banks, 1 Co-operative Banks, and 1 Regional Rural Banks in operation in Puducherry as on March 2012. In order to collect primary data for the purpose of the study, multi-stage sampling technique is adapted. At the first stage, 7 banks which outnumber in number of branches were selected out of the 38 banks. In the second stage, 5 per cent of the branches i.e 125 branches were selected out of the 7 selected banks. In the final stages, from each of the branch 80 no frill accounts holders were selected on the purposive basis. Therefore, the sample size consists of 500 respondents, of the following table shows the sampling distribution of the present study.

Objectives 1. To identity the financial inclusion on purpose of opening account in Puducherry Hypotheses 1. There is no significant relationship among the r espondents of differ ent socio economic profile to level of interest in local financial services.

Period of study The primary data required for the study was collected dur ing the month of December-2012 from no frill account holders in the Puducherry.

2. There is no significant relationship among the respondents belongs to different socioeconomic pr ofile to under banking services.

Table 1: Gender Vs of Household Accounts Ho: there is no relationship between gender and household accounts of the respondents and financial services related

Methodology This study is an empirical one. The data and other information required for the study wer e collected fr om both pr imar y and secondar y sour ces. Pr imar y data wer e collected from the no frill account holders directly, using a structured interview schedule and the secondary data were collected from various sources of books, journal, articles, magazines and related web sites information from retailers Other information pertinent to the study has been collected by means of inter views and discussions with the Gover nment officials and Indian Bank Journals Office. SELP Journal of Social Science

Source: Primary Data. (2012). Household Account between Genders

The calculated chi square value is (71.616) greater than the table value (11.341) at 1 per 85

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cent level of significance, t he test is signification; Therefore, there is significant relationship between different household accounts which gender used in Puducherry. Therefore, the null hypothesis is (Ho1) rejected. There, the male respondents are highly in number of house holder s in Puducherry. Table 2: Age Vs of Household Account

Source: Primary Data. (2012).

Ho: There is no relationship between age and household account of the respondents and financial service related

Household Accounts between Marital Statuses

Source: Primary Data. (2012).

The calculated chi square value is (33.859) greater than the table value (21. 666) at 1 per cent level of significance, Further, there is significant relationship between different marital status with household accounts used in Puducherry. Therefore, the null hypothesis is (Ho1) rejected. Therefore, the married respondents are highly in number of house holders in Puducherry.

Household Account between Ages

Table 4: Occupation Vs of Household Accounts Ho: there is no relationship between occupation and household accounts of the respondents with related factors.

T he calcu lated chi squar e value is (161.441) gr eater than the table value (21.666) at 1 per cent level of significance, therefore, there is significance relationship between different household account with age used in Puducherry. Therefore, the null hypothesis is (Ho1) rejected. Therefore, the 41 above respondents are highly in number of house holders in Puducherry. Table 3: Marital Status Vs of Household Accounts Ho: there is no relationship between marital status and household accounts of the respondents and financial services related factors. SELP Journal of Social Science

Source: Primary Data. (2012). 86

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Household Account between Occupations

qualification with household accounts used in Puducherry. Therefore, the null hypothesis is (Ho1) rejected. Therefore, the education respondents are highly in number of house holders in Puducherry.

The calculated chi square value is (99.942) greater than the table value (21.666) at 1 per cent level of significance, Therefore, there is significance relationship between different occupation with household accounts used in Puducherry. Therefore, the null hypothesis is (Ho1) rejected. Therefore, the occupation respondents are highly in number of house holders in Puducherry.

Findings 1. A significant relationship is found among the no of account your household of the respondents of gender, age, marital status, education, occupation, in financial service in Puducher r y ther efor e, the null hypothesis is (H01) rejected.

Table 5: Qualification Vs of Household Accounts

2. A significant relationship is calculated among the no of accounts your household of the respondents of annual income, in financial service in Puducherry therefore, the null hypothesis is (H02) accepted.

Ho: There is no relationship between qualification and household accounts of the respondents and financial service related factors.

Suggestions 1. Banks will have to take steps to reduce the legal procedure and insistence of collateral while lending to increase the number of customers. 2. Building customer awar eness and informing the public on use of M-banking modes is required. 3. Bank should enhance their r efund facilities concerns to if wrong transactions made by customers by mistake or if any. Source: Primary Data. (2012). Household Qualifications

Accounts

4. The banks may adopt a policy of assessing the genuine r equir ements of socially excluded group and cover all the needs of small and petty borrowers instead of providing a single loan only.

between

The calculated chi square value is (139.21) greater than the table value (30.578) at 1per cent level of significance, Therefore, there is significant relationship between different SELP Journal of Social Science

5. Banks should leverage technology to the maximum to introduce the new account holders to use and transact the accounts more and save more. 87

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Financial Inclusion with an Indian perspective”, Industrial Development Bank of India, pp -1-10.

Conclusion Puducher r y is successful financial inclusion, the banks need to pay attention on the following: The rural branches of the banks may be equipped with motivated and trained staff having some mar keting skill and knowledge on appraisal of small loan After opening ‘no frills’ account, proper measures may be made to organise them into groups for inculcating the habit of thrift which will ultimately enable them to avail cr edit facilities. Utilise the services of MFI, NGOs, SHGs, Bu siness Facilita tor s and Correspondents, etc. to extend the financial inclusion with reasonable cost.

2. Goodwin. D Adelman. L Middleton. S and Ashworth. K. (2000). “Debt, Money Management and Access to Financial Services: Evidence from the 1999 PSE Survey of Britain”, Entre for Research in social policy, Lough borough University. 3. La Francophonie. (2011). “The G20 and Financial Inclusion”, Commonwealth Secretariat, pp 1-30. 4. Mihasonirina Andrianaivo and Kangni Kpodar. (2011). “ICT, Financial Inclusion, and Gr owth: Evidence fr om Afr ican Countries”, International Monetary Fund, pp 1-46.

Reference 1. Amol Agrawal. (2008). “The need for

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