FINANCIAL INCLUSION POLICIES AND ITS IMPACT TO MARGINALIZED COMMUNITY

Abstract

The study titled "Financial Inclusion Policies and Its Impact to Marginalized Community" aims to examine the relationship between the financial inclusion policies and marginalized community and to analyze the impact of financial inclusion policies on marginalized policies. The marginalized communities are indicated by the poverty level in the study. Similarly, the financial inclusion policies of banking and financial institution are taken into consideration for conducting the study under dimensions like accessibility, penetration, availability and usage. The variables under accessibility dimension was number of branches, under penetration dimension was number of ATMs, under availability dimension was number of branches banking centers and under usage dimension was number of debit card holders, amount of deposit, and amount of loans and advances. The study has utilized descriptive and causal comparative research design along to find relationship between the variables. Secondary data were collected from various sources and were processed in a computer program named SPSS for analysis and evaluation. The findings of the study show that there is a negative significant relationship between number of branches under accessibility dimension, amount of deposit under usage dimension and poverty level indicating the marginalized community. Similarly, the financial inclusion policies like number of ATMs under penetration dimension, number of branchless banking centers under availability dimension, number of debit card holders, and amount of loans and advances under usage dimension have no significant impact on poverty level. Based on the finding, conclusion can be drawn that financial inclusion of marginalized people can done through policies like expansion of number of branches of financial institution and promotion of deposit facilities to provide opportunities to participate in financial system for generating income and reducing inequality. Therefore, such policies should be enhanced and promoted for financial inclusion of people. Keywords: Financial Inclusion Policies, branches, ATMs, Debit card holders, Branchless Banking centers, Deposit, Loans, Credit, Poverty, Marginalized Community