Unveiling the Drivers of Financial Inclusion Among Self-Help Group Members: An Empirical Analysis

Debashree Sinha, International Institute for Population Sciences (IIPS)
Aparajita Chattopadhyay, International Institute for Population Sciences, India

Financial inclusion is the flagship objective of Self-Help Groups (SHGs). Women SHGs have been recognized for their pivotal role of providing collateral free loan to women and encouraging them to take up an income generating activity or expand a business. This paper highlights the efficacy of the SHGs in financially including women. We attempt to explore financial inclusion through Jan Dhan Yojana, Aadhar & Mobile, popularly known as the JAM trinity. By utilizing primary data collected from 320 SHG members in one of the aspirational districts in West Bengal, India, and by using appropriate statistical techniques the present paper tries to fulfil its objective. The study results highlight that all the respondents irrespective of their place of residence and duration of SHG membership had ownership of bank account and had an Aadhar card. Second, possessing a mobile phone but not using it for banking purposes and low financial literacy were found to be major demand side barriers towards financial inclusion. Although majority of the respondents had an Aadhaar card, lack of Jan Dhan Yojana accounts made the financial inclusion scheme ineffective.

Keywords: Population Policies, Population and Development, Gender Dynamics, Data and Methods

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