Page 1 of 14
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2015
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 568
Financial inclusion: a primary study on district Anantnag with
special reference to J&K Bank:
Tajamul Khurshid Bhat1 Imtiyaz Hussain Ganaie2
1. 2School of economics, Devi Ahilya Vishwavidyalaya, Indore, (M.P).
Abstract:
Financial Inclusion is believed to be an
important tool to poverty eradication and
inclusive growth. Financial inclusion or
inclusive financing is the delivery of
financial services, at affordable costs, to
sections of disadvantaged and low income
segments of society. Following the
recommendation of Khan Commission-2004,
various measures have been taken by
Reserve Bank of India and Government of
India to promote the Financial Inclusion in
India. To achieve maximum financial
inclusion, banks throughout the country
scaled up their initiatives to achieve their
targets for Financial Inclusion and have
succeeded in doing so to a large extent.
However, in Jammu and Kashmir the results
are not up to the mark, because due to the
frail infrastructure. The credit-deposit ratio
is far below the national benchmark. Jammu
and Kashmir figures among the states where
financial inclusion is below average. The
present study carried out in order to look in
to the socio-economic conditions of the
beneficiaries in Anantnag district and to
know the impact of financial inclusion on
the income of different castes of the people.
Keywords: financial inclusion, RBI, J&K
Bank
Introduction:
The word Financial Inclusion could be
described as being the opposite of financial
exclusion. However, financial inclusion is
more of a process rather than a phenomenon.
It is a process by which financial services
are made accessible to all sections of the
population. It is a conscious attempt to bring
the un-banked people into banking. “The
process of ensuring access to financial
services and timely and adequate credit
where needed by vulnerable groups such as
weaker sections and low income groups at
an affordable cost”. Financial Inclusion does
not merely mean access to credit for the
poor, but also other financial services such
as Insurance. Financial Inclusion allows the
Page 2 of 14
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2015
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 569
state to have an easier access to its citizens,
with an inclusive population, for e.g.: the
government could reduce the transaction
cost of payments like pensions, or
unemployment benefits. It could prove to be
a boon in a situation like a natural disaster, a
financially included population means the
government will have much less headaches
in ensuring that all the people get the
benefits. It allows for more transparency
leading to curtailing corruption and
bureaucratic barriers in reaching out to the
poor and weaker sections. An intelligent
banking population could go a long way by
effectively securing themselves a safer
future. By the words of Dr. Haseeb Drabu,
former Chairman and Chief Executive of the
J&K Bank, if a customer due to frail
infrastructure is not able to reach the bank
branch let the bank reach to him. “We take it
as our social responsibility to provide
banking services to the people of remote
areas who find it difficult to reach our
branches. It is a hi-tech step towards our
financial inclusion through which we are
reaching out to all.”
REVIEW OF LITERATURE:
Joseph Massey (2010): said that, role of
financial institutions in a developing country
is vital in promoting financial inclusion. The
efforts of the government to promote
financial inclusion and deepening can be
further enhanced by the pro-activeness on
the part of capital market players including
financial institutions. Financial institutions
have a very crucial and a wider role to play
in fostering financial inclusion. National and
international forum have recognized this and
efforts are seen on domestic and global
levels to encourage the financial institutions
to take up larger responsibilities in including
the financially excluded lot.
Srinivasan L (2012): The Philadelphia
Character proclaims: “Poverty anywhere
constitute a threat to prosperity everywhere”.
Therefore, Financial Inclusion is necessary for
the nation. For banks, financial inclusion
initiatives offer a great opportunity. The words
of the noted economist C.K.Prahalad were
very prophetic: There are posts of gold at the
bottom of the pyramid!” Banks can see long- term profitability by looking at the bottom of
the pyramid, rather than at the top, Financial
Inclusion is not just a Corporate Social
Responsibility but a viable business model
too!
Mandira Sarma and Jesim Paise
(2008): suggest that the issue of financial
inclusion is a development policy priority in
Page 3 of 14
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2015
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 570
many countries. Using the index of financial
inclusion developed in levels of human
development and financial inclusion in a
country move closely with each other,
although a few exceptions exist. Among
socio-economic factors, as expected, income
is positively associated with the level of
financial inclusion. Further physical and
electronic connectivity and information
availability, indicated by road network,
telephone and internet usage, also play
positive role in enhancing financial
inclusion.
RESEARCH METHODOLOGY:
The present study has been conducted in
district Anantnag which is based on both
primarily and secondary information. The
primary information was obtained from field
survey through well structured
questionnaire, convenience sampling will be
done as per the requirements of the study
and the secondary data was collected
through journals, official Website of J&K
bank, and other websites.
Total 50 those persons, who were benefited
through various scheme of J&K bank, were
undertaken for the comprehensive study.
OBJECTIVES:
1. To make the assessment of the socio- economic conditions of the
beneficiaries.
2. To know the impact of financial
inclusion on the income of different
castes of the people.
Profile and Status of financial
inclusion of J&K Bank:
The Jammu and Kashmir Bank Ltd (J&K
Bank), the only state owned bank in Jammu
& Kashmir was incorporated in Oct 1938. It
commenced its business in July 1939. The
bank received the status of a scheduled
bank in 1971. It is the Agency Bank of
RBI for conducting banking business of the
Govt. of Jammu & Kashmir. J&K Bank
has a long and established track record of 75
years. The bank offers services like
anywhere banking, internet banking, SMS
banking, mobile banking, merchant
acquiring, ATM services, credit cards etc. In
FY13, the bank added 70 new branches and
upgraded 12 extension counters into full -
fledged branches. The bank also
commissioned 105 new ATMs in the same
year. As on Mar 31, 2013, the bank had a
network of 685 branches spread across 20
states and one union territory and a total of
613 ATMs across the country. In FY 2014,
