IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i6p217-d1399323.html
   My bibliography  Save this article

Empowering Self-Help Groups: The Impact of Financial Inclusion on Social Well-Being

Author

Listed:
  • Madan Survase

    (International School of Business & Media, Nande, Pune 412115, Maharashtra, India)

  • Atmajitsinh Gohil

    (Independent Researcher, New York City, NY 10019, USA)

Abstract

Financial inclusion (FI) relates to the access and availability of financial services to society, especially in low-income groups. FI is pivotal in achieving 7 of the 17 Sustainable Development Goals (SDGs). This paper explores the level of FI in the rural areas of Maharashtra and measures the impact of FI on the social conditions of Self-Help Groups (SHGs) prevalent in these areas. The study is based on a 424 SHGs survey conducted in the Pune, Thane, and Palghar districts of Maharashtra, India. The impact of FI on SHGs is evaluated using a Structural Equation Model (SEM). The results of the study show that physical banking services, Business Facilitators (BFs), and Business Correspondents (BCs) improve the social conditions of rural SHGs. Additionally, BCs and BFs mediate the relationship between physical banking services and social conditions. The study also reveals an insignificant association between BCs and BFs and insurance services. The present study highlights the importance of increasing the awareness of insurance policies through financial literacy programs and making timely availability and accessibility of BCs and BFs to enhance financial inclusion in rural areas.

Suggested Citation

  • Madan Survase & Atmajitsinh Gohil, 2024. "Empowering Self-Help Groups: The Impact of Financial Inclusion on Social Well-Being," JRFM, MDPI, vol. 17(6), pages 1-17, May.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:217-:d:1399323
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/6/217/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/6/217/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tarsem Lal, 2021. "Impact of financial inclusion on economic development of marginalized communities through the mediation of social and economic empowerment," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 48(12), pages 1768-1793, August.
    2. Shailesh Rastogi & Ragabiruntha E., 2018. "Financial inclusion and socioeconomic development: gaps and solution," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(7), pages 1122-1140, July.
    3. De Silva, M.M.G.T. & Kawasaki, Akiyuki, 2018. "Socioeconomic Vulnerability to Disaster Risk: A Case Study of Flood and Drought Impact in a Rural Sri Lankan Community," Ecological Economics, Elsevier, vol. 152(C), pages 131-140.
    4. Ozili, Peterson, 2023. "Impact of financial inclusion on economic growth: review of existing literature and directions for future research," MPRA Paper 118788, University Library of Munich, Germany.
    5. Mahyudin Ahmad & Siong Hook Law, 2024. "Financial development, institutions, and economic growth nexus: A spatial econometrics analysis using geographical and institutional proximities," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2699-2721, July.
    6. Abay Asfaw & Joachim Braun, 2005. "Innovations in Health Care Financing: New Evidence on the Prospect of Community Health Insurance Schemes in the Rural Areas of Ethiopia," International Journal of Health Economics and Management, Springer, vol. 5(3), pages 241-253, September.
    7. Rajesh Barik & Sanjaya Kumar Lenka & Jajati K. Parida, 2022. "Financial Inclusion and Human Development in Indian States: Evidence from the Post-Liberalisation Periods," Indian Journal of Human Development, , vol. 16(3), pages 513-527, December.
    8. Siphesihle Myeni & Marshall Makate & Nyasha Mahonye, 2020. "Does mobile money promote financial inclusion in Eswatini?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(6), pages 693-709, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaobing Yu & Hong Chen & Chenliang Li, 2019. "Evaluate Typhoon Disasters in 21st Century Maritime Silk Road by Super-Efficiency DEA," IJERPH, MDPI, vol. 16(9), pages 1-10, May.
    2. Yao-bin Wang & Jin-hang Zhao & Rong Yao & Rui-tao Zhao & Ying Li, 2022. "Risk of Poverty Returning to the Tibetan Area of Gansu Province in China," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    3. Manzoor Hussain Memon, 2023. "Poverty, Gap and Severity Estimates for Disaster Prone Rural Areas of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 645-663, April.
    4. Watson, Verity & Ryan, Mandy, 2007. "Exploring preference anomalies in double bounded contingent valuation," Journal of Health Economics, Elsevier, vol. 26(3), pages 463-482, May.
    5. Kai Wang & Zhe Wang & Jun Deng & Yuanyuan Feng & Quanfang Li, 2022. "Study on the Evaluation of Emergency Management Capacity of Resilient Communities by the AHP-TOPSIS Method," IJERPH, MDPI, vol. 19(23), pages 1-14, December.
    6. Israel Fekade, 2015. "Demand for Health Insurance: study on the Feasibility of Health Insurance Schemes Community Based Groups in Addis Ababa City," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 23(1), September.
    7. Donfouet, Hermann Pythagore Pierre & Mohamed, Shukri F. & Otieno, Peter & Wambiya, Elvis & Mutua, Martin Kavao & Danaei, Goodarz, 2020. "Economic valuation of setting up a social health enterprise in urban poor-resource setting in Kenya," Social Science & Medicine, Elsevier, vol. 266(C).
    8. Vito Frontuto & Silvana Dalmazzone & Francesco Salcuni & Alessandro Pezzoli, 2020. "Risk Aversion, Inequality and Economic Evaluation of Flood Damages: A Case Study in Ecuador," Sustainability, MDPI, vol. 12(23), pages 1-17, December.
    9. AHMAD Idris & ALNI Rahmawati & ARNI Surwanti & MAMDUH M. Hanafi, 2023. "Financial Literacy To Improve Sustainability: A Bibliometric Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(3), pages 24-43, December.
    10. Mastronardi, Luigi & Cavallo, Aurora & Romagnoli, Luca, 2022. "A novel composite environmental fragility index to analyse Italian ecoregions’ vulnerability," Land Use Policy, Elsevier, vol. 122(C).
    11. David Mark Dror, 2018. "Systematic Review of Willingness to Pay for Health Insurance in Low and Middle Income Countries," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 8, pages 151-168, World Scientific Publishing Co. Pte. Ltd..
    12. Crystal Kwan & Ho Chung Tam, 2021. "Ageing in Place in Disaster Prone Rural Coastal Communities: A Case Study of Tai O Village in Hong Kong," Sustainability, MDPI, vol. 13(9), pages 1-21, April.
    13. Adityawan Sigit & Maki Koyama & Morihiro Harada, 2023. "Flood Risk Assessment Focusing on Exposed Social Characteristics in Central Java, Indonesia," Sustainability, MDPI, vol. 15(24), pages 1-18, December.
    14. Choirunnisa Audi Karina & Giyarsih Sri Rum, 2018. "The Socioeconomic Vulnerability of Coastal Communities to Abrasion In Samas, Bantul Regency, Indonesia," Quaestiones Geographicae, Sciendo, vol. 37(3), pages 115-126, September.
    15. Yuguo Lin & Chao He, 2021. "Evaluation of Livelihood Sustainability in the Context of Natural Forest Land Degradation Vulnerability: A Case Study of Five Counties in China," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    16. Suhrab, Muhammad & Chen, Pinglu & Ullah, Atta, 2024. "Digital financial inclusion and income inequality nexus: Can technology innovation and infrastructure development help in achieving sustainable development goals?," Technology in Society, Elsevier, vol. 76(C).
    17. Murshed, Muntasir & Ahmed, Rizwan & Al-Tal, Raad Mahmoud & Kumpamool, Chamaiporn & Vetchagool, Witchulada & Avarado, Rafael, 2023. "Determinants of financial inclusion in South Asia: The moderating and mediating roles of internal conflict settlement," Research in International Business and Finance, Elsevier, vol. 64(C).
    18. Najat El Mekkaoui de Freitas & Hillary Johnson, 2012. "Formal and Informal Social Protection in Iraq," Working Papers 739, Economic Research Forum, revised 2012.
    19. Mohammad Mojtahedi & Bee Lan Oo, 2021. "Built Infrastructure Conditions Mediate the Relationship between Stakeholders Attributes and Flood Damage: An Empirical Case Study," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    20. Yessi Rahmawati & Andiga Kusuma Nur Ichsan & Annisaa Rizky Dwi Brintanti & Iqram Ramadhan Jamil, 2023. "Geo-spatial analysis: the impact of agriculture productivity, drought, and irrigation on poverty in East Java, Indonesia," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-20, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:217-:d:1399323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.