State Wise Analysis of Financial Inclusion Measures by Scheduled Commercial Banks in India

Abstract

Various schemes have been launched to make the basic financial services accessible to those who are in maximum need of these. In a diverse country like India, there is lack of literature to identify how these measures have affected the people. The paper uses parameters of deposit and credit penetration to see how the people in all the states have been influenced by financial inclusion measures. The credit penetration has been judged via percentage of population having access to small borrowers advances, agricultural advances and overall access to credit, whereas the deposit penetration has been measured percentage of population having access to saving banks accounts CRISIL INCLUSIX, a financial inclusion indicator by CRISIL forms the basis of study which measures the trend over 6 years from 2008–2013. Southern states emerge as leaders in parameters of credit penetration, except in case of agri-advances penetration, which is highest in the state of Punjab. In case of deposit penetration, small states like Goa and Mizoram take a lead. Study helps us to know the level of financial inclusion in a country and provides a base for further policy and decision making by the apex authorities.