Branchless Banking Case Study

1024 Words3 Pages

1.1 BACKGROUND OF THE STUDY
Financial inclusion is based on the principal of equity and inclusive growth and will be the catalyst to empower the poor to contribute to the social and economic growth of India. As per 2011 census, about 58.7 percent households had reported availing of banking facilities. Out of the 24.69 crore households, 14.48 crore reported availing banking services, nearly 10 crore households were not availing the services; which is a significant percentile of the population. Branchless banking will usher in banking for the unbanked in India and will provide a window in financial inclusion for a large segment of the population which is poor and unbanked. Branchless Banking needs to see as the key enabler of financial inclusion …show more content…

But it could never enable any rural individual to conduct transaction from a remote location by fastening the process of financial inclusion. Despite making sufficient improvements in all the areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to reach the vast portion of the population. When it comes to effective and faster penetration of banking into each and every individual in the rural area and households, branchless banking is considered as an alternative of financial inclusion.
1.3 OBJECTIVES OF THE STUDY
- To study the awareness, usage and frequency of usage of services of branchless banking models.
- To determine motivating and hindering factors affecting branchless banking adoption in rural areas.
- The study is also aimed to learn about potential users of branchless banking services among rural people.

2. LITERATURE REVIEW
From literature reviewed, the major reason for the introduction of Branchless Banking in many nations of the world is that, it is seen as a way of reaching the unbanked. The unbanked can simply be described as those individuals that do not have any form of account with a bank, Anderson (2007) defined the unbanked as diverse group of individuals who remain outside the banking mainstream for many …show more content…

There have been numerous researches analyzing how financial systems help in developing economies. A great deal of consistency exists among economists regarding financial development prompting economic growth. Many theories have established that, financial development creates favourable conditions for growth through either a supply leading or a demand-following channel. According to Rajan and Zingales (2003), development of the financial system contributes to economic

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