Factors Responsible for Financial Exclusion-Empirical Evidence from District Co-Operative Banks in Kerala

Abstract

For promoting Financial Inclusion, the issue of exclusion of people, who desire the use of financial services but are denied access to it, needs to be addressed. Prominent among the explanations for financial exclusion is the lack of a basic bank account for everyday transactions (access exclusion) and access to credit (credit exclusion) within the mainstream banks and financial institutions. Access exclusion may be due to the denial of a basic bank account by the bank personnel. At times, people may not be interested in opening a basic bank account, which is considered as voluntary exclusion/self exclusion.

The basic factors responsible to be blamed for financial exclusion are self exclusion, access exclusion and credit exclusion.The present study attempts to analyse the perception of the DCB managers of the selected branches of District Co - operative Banks (DCBs) in Kerala, in terms of three dimensions of self exclusion, access exclusion and credit exclusion. Primary data collected from 75 respondents of three selected districts, through multi stage random sampling method were used for the study and the data were analysed, using SPSS (version 17).