Year: 2025 | Month: December | Volume 14 | Issue 4
Financial Inclusion Status, Measurement, Determinants and Gender Gap: An Empirical Analysis of Punjab State in India
Lavneet Kaur and Deepty Bansal
DOI:10.46852/2249-6637.03.2025.4
Abstract:
Financial inclusion is the access to useful and affordable financial products and services, especially for the vulnerable sections of society. It is a key agenda of the government due to its potential to alleviate poverty, reduce inequalities and attain sustainable development. The government is focusing on elaborating financial infrastructure and is strengthening the supply side, but the actual usage of financial services is a challenge, especially among rural people and women. The present study is a comprehensive analysis of financial inclusion, with a primary focus on measuring its level in the rural areas of the Punjab state of India. For this purpose, primary data was collected from 500 respondents through a proportional stratified random sampling method. This research aims to elaborate the status of financial inclusion and explore the financial inclusion indicators. A Financial Inclusion Index has been developed to assess the extent of financial inclusion. Gender gap in the level of financial inclusion has been determined, and the impact of different demographic and socio-economic variables on the level of financial inclusion has been evaluated. This study highlights some important issues regarding financial inclusion and gender disparities, leading to policy recommendations aimed at enhancing financial inclusion. The study provides valuable insights into the varied aspects of financial inclusion and it will be useful for researchers, financial institutions and government policy makers.
Highlights
- The study reveals that around forty-five per cent of the respondents in Punjab are under the lower financial inclusion category with an average financial inclusion score of 5.2.
- The study highlights a statistically significant gender gap among the respondents.
- It is found that educational qualification, employment status, household monthly income, and access to banking services are the main parameters that positively influence the level of financial inclusion.
- The findings underscore the need for improving the demand side aspect representing the actual usage of financial products in the rural areas to enhance the level of financial inclusion.
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