Published Online:October 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP111024
Author Name:Raushan Kumar, Niranjan Deo Pathak and Pavnesh Kumar
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:251-270
The paper evaluates the determinants of financial inclusion (FI) from the beneficiaries’ point of view (demand-side). It also evaluates the relationship of demand-side determinants and financial initiatives/schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY) to FI. Using Exploratory Factor Analysis (EFA), the elements of FI are determined from a sample of 213 respondents from different sections of the society in India. Confirmatory factor analysis to find reliability and validity tests to identify the FI components are used. From the demand side, the study identifies three parameters for gauging FI: ease of access, financial awareness and financial initiatives. These variables are found to represent many aspects of FI that significantly affect inclusion level.
India is the second largest population in the world (O’Neill, 2024). According to Basu (2005), a significant portion of the population, especially, the socially disadvantaged groups such as weaker sections and low-income groups, nonetheless, face exclusion from even the most fundamental opportunities and services offered by the financial industry (Basu, 2005).