Usage Behavior of Basic Savings Bank Deposit Account among Customers in Coimbatore District

Abstract

Financial inclusion is providing banking services to underprivileged and low income people who are excluded in the formal financial system. One of the initiatives taken by the government to improve financial inclusion was to provide Basic savings bank deposit account (formerly No frill account) for the rural households as part of inclusive banking. Recently government has launched ‘Pradhan Mantri Jan-Dhan Yojana' a National Mission for Financial Inclusion to ensure people from rural area and low income population to have access to banking services, like Savings, Deposits, Remittance, Credit, Insurance, and Pension. The author's attempts to study the usage behavior of account holders of Basic Savings Bank Deposit Account (BSBDA) in sub urban areas of Coimbatore district where three villages are selected and results are presented through percentage analysis and graphical representations. The authors also have evolved a Socio economic model of Basic savings bank deposit account to establish a relationship between Awareness and Transactional usage, Awareness and Socio economic variable, Transactional usage and socio economic variable. The study finally attempts to test whether there is any significant relationship exists among Socio economic variables influencing the awareness and transactional usage of the account holders which affect the usage behavior of Basic savings bank deposit account (BSBDA) holders