Determinants of Financial Inclusion: Evidence from India

This study aims to determine the factors of financial inclusion in India. The data used to carry out this research was taken from the Global Financial Inclusion, 2014 survey with a sample size of 3000 respondents. The survey was conducted across different states, classes, occupations, gender and generations. Since the dependent variable was categorical, a logistic regression analysis was carried out across eight different independent variable namely-gender, age, education, lack of documentation, lack of trust, lack of money, religion and distance from financial institution. The results show that all the variables are significant and have a considerable effect on the level of financial inclusion. On the basis of the results the study proposes certain policy level interventions pertaining to the specific excluded sections of the society. In addition to this targeted policy intervention, other significant issues including the barriers like distance, religion, education are also duly addressed in the study.