Extent of Financial Inclusion in Haryana: A District-level Analysis

Abstract

The present article investigates the level of financial inclusion in Haryana by creating a multi-dimensional financial inclusion index. The study constructed the index for the district of Haryana in 2010 and 2020. After an extensive review of literature, the study takes into consideration three basic variables as a representation of extent of financial inclusion, namely penetration of banking, accessibility of banking services and usage of the banking system. The study confirmed that the level of financial inclusion is quite high in Gurugram district but the situation is alarming in Mewat district indicating a wide inter district disparity in financial inclusion. Thus, the study advocated an inclusive policy for financial inclusion to bring all the segments of the community under the scope of the formal monetary arrangement. Further, setting up of digital set-up to remote and rural areas, opening of more financial literacy centres and more liberal credit policies can help to fulfil the true spirit of financial sector reforms.