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Efficacy of Financial Inclusion and Economic Well-Being: A Case Study of Kashmir Valley

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  • Alam, Tosib
  • Rashid, Mohd

Abstract

This paper intends to study the relationship between financial inclusion and empowerment level in two districts of Kashmir region (Srinagar and Pulwama). The field survey of sample size of 200 households belonged to both the urban and rural areas has been taken using questionnaire. The study has employed the independent t-test, paired t-test, ANOVA and Chi-Square test for estimation purposes, in addition to this for sampling procedure the study used multistage purposive sampling. The study found significant association between those respondents who are availing benefit of these financial inclusion schemes and their level of saving and income. The beneficiaries of the financial inclusion schemes like KCC and SHGs reported a reduction in exploitation, particularly in terms of high-interest rates on debt amounts from the money lenders. People living in rural areas have better knowledge regarding the various financial inclusion programme. The study highlights the potential role of education in empowering individuals to engage with formal financial systems and take advantage of the benefits provided by such schemes. However, they still lacked the infrastructure in terms of education and banking facilities, financial literacy and health. So, there is great need to emphasis on these issues to make people aware and rise their level of the usage of financial inclusion schemes. Besides, financial literacy centres should be opened particularly in the rural area. For people of rural Kashmir residing in far-flung areas, there is not only an issue of connectivity but banks are also not interested in opening branches due to non-profitability of the area. Government should focus on establishing new bank branches in the remote region to enhance their financial wellbeing.

Suggested Citation

  • Alam, Tosib & Rashid, Mohd, 2023. "Efficacy of Financial Inclusion and Economic Well-Being: A Case Study of Kashmir Valley," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 4), December.
    • Handle: RePEc:ags:inijae:345288
    DOI: 10.22004/ag.econ.345288
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    References listed on IDEAS

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