Status and Challenges of Financial Inclusion: An Evidence from Rural Gujarat

The benefits of economic development must reach to the bottom of the pyramid population. Therefore, it is imperative that population in rural areas is brought in the formal financial system in an economy like India. People whose living in rural or semi urban areas are deprived and underprivileged to get necessary formal financial products and services almost in all developing countries like India. Those living in rural areas still find it difficult to avail appropriate financial services in time, which act as an impediment in their effort to lead a healthy and better life. In any part of country supplying financial services to this vast and underprivileged segment of society is a challenging task. The paper is an attempt to study status of challenges of financial inclusion in selected rural areas of Gujarat. This study is intended to analyze current status of demand and supply side barriers of financial inclusion in selected rural areas of Gujarat state. The efforts for financial inclusion, through policy formulation and programme implementation will be studied and an attempt will be made to identify challenges in promoting financial inclusion in rural areas of Gujarat. The study will be based on primary data, Secondary data have also been used to substantiate results and identify government efforts in financial inclusion. Collected data have been analyzed using frequency analysis, percentage and use of SPSS. The conclusion will be used to suggest policy implications as well.