Path to Financial Inclusion: The Assessment of SHG Beneficiaries in District Central Co-operative Bank, Kakinada, Andhra Pradesh

Abstract

Financial Inclusion is defined as the ability of an individual, household, or group to access appropriate financial services or products. In simple terms, Financial Inclusion means delivery of banking services (such as savings accounts, loans,remittance and payment services) at an affordable cost and in a convenient manner to the poor and marginalized sections of society. Co-operatives are one of the oldest organizations working for Financial Inclusion. In developing countries, they still play a crucial role in that issue, especially by serving rural areas that other types of microfinance institutions are not willing or not able to serve. Indeed, reaching rural areas is one of the main challenges of microfinance and Co-operatives Banks could represent an efficient way to overcome this challenge. There are many ways in which both SHG members and Co-operative Banking institutions can benefit from doing business together, there are a number of reasons why such linkages should be pursued with caution, by both parties. This study addresses Financial Inclusion through Self Help Groups in District Central Co-operative Bank, Kakinada. The information required for the study has been collected from both the primary and secondary sources. A simple random sampling method has been followed. Percentage analysis was carried out to draw meaningful interpretation of the results. Analysis of Variance (ANOVA) technique was used to find the perceptions of the members.