Extent of Financial Inclusion and Exclusion among Rural Households in Fazilka District of Punjab

Financial inclusion is a process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as economically weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated mainstream institutional players (CRISIL, 2013). The study brought out that an average number of bank accounts came out 2.06 per household which is higher in banking village(2.80). The extent of bank account holders was highest among large famers (4.40) and lowest among labourers. Out of the total bank accounts, the public banks occupied the highest share (41.74 per cent), followed by private banks (24.76 per cent). Out of the total number of bank accounts, 50.47and 54.39 per cent accounts were not functional in banking and non-banking village respectively. The awareness level about Jan Dhan Yojna was exceptionally low in non-banking village as compared to banking village. Besides, crop loan (32.67 per cent), majority of the sampled households used bank accounts for availing bank loan (38 per cent) only.