IMPACT OF FINANCIAL INCLUSION ON SOCIO-ECONOMIC CONDITIONS OF CUSTOMERS OF TELANGANA GRAMEENA BANK

Abstract

Financial inclusion and inclusive growth are pivotal topics in contemporary economic development. Inclusive growth seeks to empower individuals from vulnerable communities, with financial inclusion serving as its foundation stone. By providing reliable and accessible financial services to underserved populations, financial inclusion plays a critical role in fostering inclusive growth and alleviating poverty. In India, the government has launched various initiatives to extend formal financial services to previously unbanked households. This study aims to evaluate the impact of financial inclusion factors i.e., Accessibility of Banking Operations (ABO), Digitalization of Financial Inclusion (DFI), Affordability (AFF), Adequacy (ADE), and Awareness of Financial Inclusion (AFI) on the social and economic conditions of customers. Primary data was collected using structured questionnaires from 439 respondents of Telangana Grameena Bank (TGB) and using statistical tools such as ANOVA and multiple regressions for analyses of data. The findings reveal that ABO, DFI, AFF, and ADE factors have a significant positive impact on the socio-economic conditions of customers, whereas AFI does not exhibit a significant effect. These results underscore the importance of enhancing accessibility, affordability, and digitalization to promote inclusive growth in rural areas.