Financial inclusion is a process of providing financial services to everyone at an affordable cost, particularly to weaker sections and low-income groups. The study analyses the level of awareness, usage of banking services and other financial benefits and explores the hindrances to financial inclusion faced by the informal workers in Delhi National Capital Region (NCR). An empirical survey is done, and 760 responses are evaluated to understand the level of financial inclusion using correlation, logit regression analysis, etc. Findings of the study indicate that level of financial awareness and inclusion increase with age, education and income for fixed salary workers. Major hindrances to financial inclusion are lack of savings for using financial services, lack of necessary documentation and lack of trust in the formal banking system. Therefore, the government needs to make more efforts to reach out to the urban poor and informal workers for all-around inclusiveness.
AllenF., Demirguc-KuntA., KlapperL., & Martinez PeriaM. S. (2016). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 27(2016), 1–30. https://doi.org/10.1016/j.jfi.2015.12.003
2.
AmbarkhaneD., SinghA. S., & VenkataramaniB. (2016). Measuring financial inclusion of Indian states. International Journal of Rural Management, 12(1), 72–100. https://doi.org/10.1177/0973005216633940
3.
AtkiinsonA., & MessyF. (2013). Promoting financial inclusion through financial education(OECD Working Papers on Finance, Insurance and Private Pensions, 34). OECD. https://doi.org/10.1787/5k3xz6m88smp-en
4.
BapatD., & BhattacharyayB. N. (2016). Determinants of financial inclusion of urban poor in India: An empirical analysis(Working Paper No. 6906; Category 13: Behavioural Economics). CESifo.
5.
BeckT., Demirgüç-KuntA., & LevineR. (2006). Bank concentration, competition, and crises: First results. Journal of Banking and Finance, 30(5), 1581–1603. https://doi.org/10.1016/j.jbankfin.2005.05.010
6.
BeckT., Demirguc-KuntA., SoledadM., & PeriaM. (2006). Banking services for everyone? Barriers to bank access and use around the world. The World Bank Economic Review, 22(3), 397–430.
7.
BergeijkP. V., NamP. K., & HagueT. (2019). Financial inclusion in Vietnam: The impacts of demographic factors on the use of financial services. International Institute of Social Studies.
8.
BhatiaN., & ChatterjeeA. (2010). Financial inclusion in the slums of Mumbai. Economic & Political Weekly, 45(42), 23–26.
9.
BoatengK. (2018). Financial inclusion for economic growth—an overview of some financial inclusion policies in India. KAAV International Journal of Economics, Commerce & Business Management, 5(1), 53–59. https://doi.org/10.9780/23197943
10.
CaireG., & BeckerG. S. (1967). Human capital: A theoretical and empirical analysis with special reference to education. Revue Économique, 18(1), 132. https://doi.org/10.2307/3499575
11.
CaskeyJ. P., DuranC. R., & SoloT. M. (2006). The urban unbanked in Mexico and the United States(Policy Research Working Paper, 3835, pp. 1–60). World Bank.
12.
ChakravartyS. R., & PalR. (2013). Financial inclusion in India: An axiomatic approach. Journal of Policy Modeling, 35(5), 813–837. https://doi.org/10.1016/j.jpolmod.2012.12.007
13.
ChenW., & YuanX. (2021). Financial inclusion in China: An overview. Frontiers of Business Research in China, 15(1). https://doi.org/10.1186/s11782-021-00098-6
14.
ClaessensS. (2006). Access to financial services: A review of the issues and public policy objectives. World Bank Research Observer, 21(2), 207–240. https://doi.org/10.1093/wbro/lkl004
15.
Dabla-NorrisE., JiY., TownsendR., & UnsalD. F. (2015). Identifying constraints to financial inclusion and their impact on GDP and inequality: A structural framework for policy(Working Paper No. 2015/022). IMF. https://doi.org/10.5089/9781498381598.001
16.
Demirgüç-KuntA., & KlapperL. (2013). Measuring financial inclusion: Explaining variation in use of financial services across and within countries. Brookings Papers on Economic Activity, 340(2013), 279–321. https://doi.org/10.1353/eca.2013.0002
17.
Demirgüç-KuntA., KlapperL., & SingerD. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence(World Bank Policy Research Working Paper No. 8040, pp. 1–27). World Bank Group.
18.
DupasP., & RobinsonJ. (2013). Savings constraints and microenterprise development: Evidence from a field experiment in Kenya. American Economic Journal: Applied Economics, 5(1), 163–192. https://doi.org/10.1257/app.5.1.163
19.
Financial Inclusion Advisory Committee. (2020). National strategy for financial inclusion 2019–2024.
20.
FungacovaZ., & WeillL. (2014). Understanding financial inclusion in China. China Economic Review, 34, 196–206. https://doi.org/10.2139/ssrn.2428151
21.
GuptaS. K. (2011). Financial inclusion—IT as enabler. Reserve Bank of India, 32(2), 129–148.
22.
GupteR., VenkataramaniB., & GuptaD. (2012). Computation of financial inclusion index for India. Procedia—Social and Behavioral Sciences, 37, 133–149. https://doi.org/10.1016/j.sbspro.2012.03.281
23.
HanR., & MeleckyM. (2013). Financial inclusion for financial stability: Access to bank deposits and the growth of deposits in the global financial crisis. In Background paper to the 2014 world development report(Policy Research Working Paper No. 6577, Vol. 6577). The World Bank.
24.
HannigA., & JansenS. (2011). Financial inclusion and financial stability: Current policy issues. In Financial market regulation and reforms in emerging markets(Working Paper No. 259). Asian Development Bank Institute. https://doi.org/10.2139/ssrn.1729122
25.
IqbalB. A., & SamiS. (2017). Role of banks in financial inclusion in India. Contaduria y Administracion, 62(2), 644–656. https://doi.org/10.1016/j.cya.2017.01.007
26.
JoshiM., & RajpurohitV. P. (2016). Awareness of financial inclusion: An empirical study. International Journal of Multidisciplinary, 1(6). 1–6. https://doi.org/10.2139/ssrn.2816493
27.
KimJ., & KimJ. (2016). A study on the effect of financial inclusion on the relationship between income inequality and economic growth. Emerging Markets Finance and Trade, 52(2), 498–512. https://doi.org/10.1080/1540496X.2016.1110467
28.
KumarN. (2013). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5(1), 4–19. https://doi.org/10.1108/17576381311317754
29.
KumarS. P., & ChauhanS. (2015). Impact of commercial deposit in banks with GDP in context with Pradhan Mantri Jan Dhan Yojna. SSRN Electronic Journal, 7(1), 53–59. https://doi.org/10.2139/ssrn.2576714
30.
LoukoianovaE., YangY., GuoS., HunterL., JahanS., JamaludinF., & SchauerJ. (2018). Financial inclusion in Asia-Pacific. In Departmental papers/policy papers (Vol. 18, Issue 17). International Monetary Fund. https://doi.org/10.5089/9781484371015.087
31.
MasikaR., ChanamutoN., & ChaudhryS. (2015). Urban poverty in the 21st century: A gender perspective and women’s rights to adequate housing, land, and property in urban India. InMathurO. P., TandonV., & De SarkarA.(Eds.), State of the urban poor report 2015 gender and urban poverty (pp. 13–28, 70–73). Oxford University Press.
32.
Ministry of Labour & Employment. (n.d.). Annual report 2020–21.
33.
NairT., & TankhaA. (2015). Inclusive finance India report 2014. www.oup.com
34.
NeaimeS., & GayssetI. (2018). Financial inclusion and stability in MENA: Evidence from poverty. Finance Research Letters, 24(2017), 230–237. https://doi.org/10.1016/j.frl.2017.09.007
35.
ParamasivanC., & ArunkumarG. (2018). An overview of financial inclusion through DBT in India. Journal of Social Science, 37(37), 79–85.
36.
PaulJ. P., & SilambarasanM. (2020). The dimensions of financial inclusion of under-privileged sections of the society in India—a review. ICTACT Journal on Management Studies, 6(2), 1238–1243. https://doi.org/10.21917/ijms.2020.0172
37.
PeacheyS., & RoeA. (2006). Access to finance—what does it mean and how do savings banks foster access. In Handbook of development economics (Vol. 49). Rural Finance & Investment Learning Centre. https://doi.org/10.1016/B978-0-444-52944-2.00009-4
38.
SarmaM. (2012). Index of financial inclusion—a measure of financial sector inclusiveness. Centre for International Trade and Development.
SarmaM., & PaisJ. (2008). Financial inclusion and development: A cross country analysis. Indian Council for Research on International Economic Relations.
41.
ShekharM. (2018). Financial inclusion through PMJDY: Pre & post demonetization. Faculty of Accounting & Finance College of Business Administration, University of Hail.
SinghC., & NaikG. (2018). Financial inclusion after PMJDY: A case study of Gubbi Taluk, Tumkur. SSRN Electronic Journal(IIMB-WP No. 568). https://doi.org/10.2139/ssrn.3151257
44.
StiglitzJ. E., & WeissA. (1981). Credit rationing in markets with imprefect information. The American Economic Review, 71(3), 393–410.
45.
United Nations. (2019). World urbanization prospects. In Demographic research: Vol. ST/ESA/SER. https://population.un.org/wup/Publications/Files/WUP2018-Report.pdf
46.
VargheseG., & RooseveltF. D. (2018). Normative perspectives on financial inclusion: Facts beyond statistics. Journal of Public Affairs, 18(4), 1–5. https://doi.org/10.1002/pa.1829
47.
ZinsA., & WeillL. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57. https://doi.org/10.1016/j.rdf.2016.05.001
