Purpose of Savings and its Determinants in Case of Destitute Population An Empirical Analysis of Slum Dwellers

Abstract

Research has shown that poor people living in under developing countries are saving less, little is known about the responsible factors which influence savings of these poor urban groups. The following study is based on Theoretical perspectives for examining the nature of savings among Slum dwellers in Lucknow. Three perspectives have been analysed in the study which are Individual capabilities-oriented perspectives, Sociological perspectives and Institutional mechanism (supply-oriented approach) towards the marginal sections of the society. The responsible factors for low savings are due to monopoly-based supply-oriented banking discipline, financial illiteracy, income of the people etc. Findings of the paper suggests that poor people are worth to save and are saving, particularly if both the banking and institutional barriers are removed and made more inclusive so that poor people themselves try to come out from the problem of poverty.