Linkages between Financial Inclusion and Financial Planning A Study using Mutiple Criteria Decision Making Technique with Reference to Urban Cooperative Banks and Public Sector

Abstract

Financial Inclusion is one of the most widely discussed topics in our country. The importance can be gauged from the large number of schemes/programmes introduced like Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojana (APY), Pradhan Mantri MUDRA Yojana (PMMY) accounts etc. Even though substantial progress have been made in financial inclusion interms of account ownership, usage remains low as seen from the large number of dormant and inactive accounts, low digital products usage etc. newlineAlthough a large number of studies have been undertaken on the topic of financial inclusion, majority of the studies were undertaken keeping in mind only the supply side parameters (e.g. No of ATMs, distance from branch etc.). Further, financial planning being an important parameter in decision making was not given the due importance. Additionally the linkages between financial inclusion and financial planning has not been covered adequately in previous studies. So the current study undertakes an evaluation of Financial Inclusion (FI) and Financial Planning (FP) using Multiple Criteria Decision Making (MCDM) technique from the perspective of customers taking into consideration all the necessary dimensions of both financial inclusion and financial planning. newlineInitially, an extensive literature review is undertaken w.r.t exclusion. Consequences of financial exclusion, barriers to inclusion, demand/supply side measurements of financial inclusion, recommendations of various committees/organisations etc. was studied in detail. Further, previous studies based on various dimensions of financial inclusion interms of Availability, Usage, Access, and Attitude was also undertaken. newlineHaving identified various main and sub dimensions of Financial Inclusion (FI) and Financial Planning (FP), the researcher with the support of a panel of judges prioritised the various dimensions and sub dimensions of Financial Inclusion and Financial Planning using Analytic Hierarchy Process (AHP) decision making technique.