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Financial Inclusion: Lessons from Rural South India

Published online by Cambridge University Press:  11 July 2011

RAM A. CNAAN ,
M. S. MOODITHAYA  and
FEMIDA HANDY
RAM A. CNAAN*
Affiliation:
School of Social Policy & Practice, University of Pennsylvania, 3701 Locust Walk, Philadelphia, PA 19104, USA
M. S. MOODITHAYA
Affiliation:
Nitte Education Trust, 7th Floor, Rambhavan Complex Kodialbail, Mangalore, India email: [email protected]
FEMIDA HANDY
Affiliation:
School of Social Policy & Practice, University of Pennsylvania, 3701 Locust Walk, Philadelphia, PA19104, USA email: [email protected]
*
email: [email protected]
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Abstract

Financial inclusion/exclusion has recently been emphasised as an important policy option aimed at alleviating poverty, minimising social exclusion and enhancing economic growth. In this article, we review the growing interest in financial exclusion and inclusion, define them and demonstrate their existence in developing and developed countries. Our empirical focus is on whether financial inclusion has been successfully implemented in four sites in rural South India where banks claimed that financial inclusion is complete. Although many rural people in South India are financially included, the concept of financial inclusion is more complex than usually portrayed. Our findings show that social and personal deprivation contributes to financial exclusion and should be viewed as key barriers to financial inclusion. We also suggest that financial inclusion is not a monolithic phenomenon and should be studied in a multi-layered fashion, ranging from having a bank account to making full use of modern financial instruments.

Type
Articles
Information
Journal of Social Policy , Volume 41 , Issue 1 , January 2012 , pp. 183 - 205
Copyright
Copyright © Cambridge University Press 2011

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