FINANCIAL INCLUSION IN RURAL KERALA: A DISTRICT LEVEL STUDY.

This study measured financial inclusion levels across rural areas of all the 14 districts of Kerala state, one of the most developed state of India, by constructing a comprehensive Financial Inclusion Index (FII) incorporating nine indicators representing three different facets of financial inclusion i.e. bank branches, deposits and credit covering both geographical and demographic penetration. The extent of variations amongst these areas in terms of selected indicators has also been examined. The results depicted presence of low level of financial inclusion across different districts as only five districts were found to be in above average category. Huge variations were also found to be present in the indicators representing usage of formal financial services in terms of money deposited and credit taken as well as in availability of banking services measured through presence of branch network. [ABSTRACT FROM AUTHOR]