Relationship Between Financial Inclusion And Economic Improvement In Khordha District Of Odisha

Abstract

ABSTRACT newlineFinancial inclusion protects low-income group s financial wealth and other resources in newlinecrucial circumstances by bringing them within the perimeter of formal banking sector. newlineIt also softens the exploitation of vulnerable sections by the usurious money lenders by newlinefacilitating easy access to formal credit. Further, financial inclusion broadens the newlineresource base of the financial system by developing a culture of savings among large newlinesegment of rural population and plays its own role in the process of economic newlinedevelopment. Also, a strong financial system encourages expansion in the market and newlinecompetition for existing firms. It ensures that poor households and small entrepreneurs newlineneed not depend on middlemen. newlineProblem Statement newlineMacroeconomic evidence indicates that financial inclusion has a strong positive impact newlineon economic improvement over a long period of time; so it is also worthy to take a newlinemeasurement of this impact. newlineResearch Questions newlineFrom the review of extant literature, the following research questions have been formed newlinethat are needed to be answered in the present study; newline1. Have the financial inclusion initiatives led to economic improvement in newlineKhordha district? newline2. If economic improvement due to financial inclusion has at all happened in newlineKhordha district, has it happened uniformly across demographic segments of newlinethe society? newline3. What is the attitude of people in Khordha district towards financial inclusion? newline4. What is the perception of people of Khordha district towards financial newlineinclusion? newlineResearch Objectives newlineIt has been already indicated in the earlier paragraphs the main focus of the present newlinestudy has been on financial inclusion and its impact on economic improvement. But, newlinethough the overall objective of the present study is to establish a relationship between newlinefinancial inclusion and economic improvement in Khordha district, the specific newlineobjectives of the study are as per the following: newline1. To analyze the current status of financial inclusion in Khordha district. newlinexi newline2. To explore whether financial inclu