A STUDY ON FACTORS INFLUENCING FINANCIAL INCLUSION OF RURAL AREAS IN COIMBATORE

Abstract

In India most of our population is belong to rural areas. Finance is very essential for every activity in our day today life. Without finance nothing can be done by any group in the society. Always the financial needs of upper sections of the society were met their need and requirement. Still an India facing major difficulty for access of finance by the weaker section of people, this is due to the reasons such as lacking awareness about financial and banking services, and also unaware about schemes available for them, and also there is an lack of regular and substantial income of the people etc. Moreover banks also not provide equal importance to the lower section of the people to meet their financial needs. The bank thinks that providing small loans is not yielding any profit and not makes any big difference for the financial targets also. They focus only on large accounts. India for long time recognized that financial inclusion has an enormous contribution to economic development by finding innovative ways to empower the poor. It is beginnings with the nationalization of banks, priority sector lending requirements for banks and they lead bank scheme, establishment of regional rural banks (RRBS), service area approach, self-help group-bank linkage programme etc., and multiple steps have taken by the Reserve Bank of India. Here on analysis done for factors influencing financial inclusion in rural areas rural development using descriptive correlation and Garret ranking.