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Dr.Ritu, Vijay Kumar

Abstract

Financial inclusion refers to a strategic approach aimed at facilitating access to financial services for marginalised populations, including individuals residing in poverty-stricken and low-income neighbourhoods. The importance of entrepreneurship and employment growth cannot be overstated, since it has the potential to significantly enhance economic growth. The challenges encompass several factors such as inadequate infrastructure, low income levels, poverty, legislative limitations, geographical remoteness, restricted financing availability, and concerns related to data privacy. Financial institutions establish and provide support to Self-Help Groups (SHGs), hence facilitating their role in fostering economic development. Women have a prominent role in Self-Help Groups (SHGs), exerting significant influence on both the overall economic development of the nation and the welfare of their families. The Self-Help Group Bank Linkage Programme (SHGBLP) is an initiative aimed at mitigating transaction costs for Indian banks while concurrently augmenting the average annual income of low-income households by 72%.


Self-help groups (SHGs) are widely recognised as a prevalent method of promoting financial inclusion in India. According to the findings of a survey, it was observed that a significant proportion of respondents, namely 79%, exhibited a commendable level of financial literacy, while the remaining 21% displayed a comparatively lower level of financial literacy. This study investigates the relationship between microfinance institutions and financial inclusion in the context of rural development and self-help organisations in Haryana, India. The findings reveal a significant correlation between microfinance institutions and the promotion of financial inclusion. The concept of connecting Self-Help Groups (SHGs) with banks is widely recognised as a prominent approach for promoting financial inclusion, primarily due to its ability to attract a significant number of new clients. The promotion of Self-Help Groups (SHGs) and Microfinance Institutions (MFIs) has the potential to mitigate the financial disparity between individuals who lack access to formal banking services and those who are financially included.


This study also investigates the perspectives of branch managers about financial inclusion and the role played by Business Correspondents (BCs) in promoting inclusivity. This study demonstrates the impact of individual circumstances on the accessibility of banking services for families in Haryana, thereby enabling financial institutions to extend their reach to rural regions.

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How to Cite

A Study Seeks To Look Into The Relationship Between Rural Development And Financial Inclusion By Examining The Role Of Self-Help Groups. (2023). Journal of Namibian Studies : History Politics Culture, 35, 5060-5070. https://doi.org/10.59670/jns.v35i.5215