Challenges Confronted by Banks in Implementing Financial Inclusion Schemes in Himachal Pradesh

Abstract

India has been acknowledged the social and economic obligations of financial inclusion since independence and has made immense contributions. The government of India and the Reserve Bank of India has been making combined efforts to foster financial inclusion as one of the primary national aims of the country. Since last decade hard efforts have been made by the government to cover the unbanked population under the formal financial sector. A lot of important schemes have been introduced by the government from time to time for the benefit of the people on one hand and to strengthen the economy on the other but the load of execution of the schemes on the ground level was on the shoulders of banks. As far as the economic upswing of the nation is concerned, the most relevant thing is the financial inclusiveness, for which the paramount role players are banks. It will be impossible to think about financial inclusive economy if banks do not link the governmental schemes with the end users. Concerning the significance of banks study has been undertaken to study the challenges confronted by banks while implementing financial inclusion schemes in Himachal Pradesh. The study is based on the primary data collected with the help of questionnaires to be filled by branch’s manager or assistant manager by 64 selected banks of the state. To achieve the objective of the study analysis has been done with the help of various statistical techniques like mean, standard deviation and exploratory factor analysis.