Multidimensional financial inclusion index for Indian states

Dados Bibliográficos

ID12705352
AutoresVishal Yadav (0000-0001-7443-4205, Department of Economics, School of Management Pondicherry University Puducherry India), Bhanu Pratap Singh (0000-0002-1757-9763, Economics Section, Mahila Mahavidyalaya Banaras Hindu University Varanasi India, autor correspondente), Nirmala Velan (Department of Economics, School of Management Pondicherry University Puducherry India)
Ano2020
Volume21
Fascículo3
Data de publicação2020-07-23
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of Public Affairs (JOURNAL)
Identificadores do periódicoISSN: 1472-3891 • E-ISSN: 1479-1854
EditoraWiley (PUBLISHER • GB)
DOI10.1002/pa.2238
OpenAlexW3044547399
IdiomaEN
Citações recebidas2
Referências citadas16

The study proposes a multidimensional financial inclusion index (FII) for 27 Indian states. The separate demand and supply FII is constructed across the states for the period 2004–2017. The Human Development Index (HDI) methodology developed by the United Nation Development Programme (UNDP) is adopted in the construction of current FII. After the launch of Pradhan Mantri Jan Dhan Yojna (PMJDY) in 2014, there is no study in the Indian market attempted to examine the status of financial inclusion across the states over a longer period. The current study fills this gap by proposing the demand and supply FII. The major findings of the study show that the level of FII measure tends to indicate marginal improvement in the level of financial inclusion across states during 2004–2017. Most of the northern and north‐eastern states were found to be under low financial inclusion. On the other hand, most of the high financially included states were also better in terms of HDI and literacy. Further, PMJDY was unable to augment financial inclusion across the states because of marginal impact of the scheme which helped only a few states to move from low to medium FII states. On the contrary, the rise in the dormant account, low HDI and illiteracy across the majority of the states were the major reason behind the failure of PMJDY. Hence, structural reforms are warranted in the policy framework to provide financial services to poorest among the poor at low or no cost for better economic outcomes

Demographic economics · Development economics · Economic growth · Economics · Financial inclusion · Financial services · Functional illiteracy · Human development (humanity · Human Development Index · Inclusion (mineral · Index (typography · Political science · Social science · Sociology · State (computer science · Islamic Finance and Banking Studies · Mathematics · Microfinance and Financial Inclusion · Urban and Rural Development Challenges · Finance