E Ragabiruntha

Bio: E Ragabiruntha is an academic researcher. The author has contributed to research in topics: Financial literacy & Financial inclusion. The author has an hindex of 1, co-authored 1 publications receiving 23 citations.

Financial inclusion and socioeconomic development: gaps and solution

Abstract: The purpose of this paper is to identify factors relevant for financial inclusion (FI) and establish a model that shows how these factors lead to economic development (ED) through FI.,Primary data were collected through structured questionnaire. Out of 350, 311 respondents accurately filled the questionnaire. The data were collected from rural areas of Tamil Nadu. Exploratory factor analysis has been applied to evaluate drivers/factors relevant for FI. Confirmatory factor analysis has been applied to establish reliability and validity of the identified factors. A structural model has been proposed and empirically tested for ED through FI.,The main findings of the current paper are as follows: online banking (OB), understanding banking services (UBS) and financial literacy (FL) are the drivers of FI; FI can lead to ED, as the proposed model of ED, through FI, is supported in the paper (χ2/degree of freedom and CMIN/degree of freedom are less than 3; GFI and AGFI are more than 0.90 and 0.85, respectively). Behavior of the people, with respect to mode of financial transactions, has changed due to demonetization. (The χ2 test for mode of financial transaction is significant).,The geographical reach of the sample should cover the whole India. The sample should also have equal representation from rural and urban areas.,The identified factors for FI (OB, UBS and FL) should be more focused to bring about better results for FI in India. These factors can lead to a more effective execution of FI initiatives. In addition to this, policy makers can be confident of relying upon FI as a tool for ED.,The identified three drivers for FI have not been explored earlier. In addition to this, ED (through FI) in the form of structural model has also not been tested earlier. Government of India can realign their policies toward FI by using findings of this paper. In addition to increasing the access of formal financial system to masses, more thrust can be given to OB and FL for better results of FI in India.

Determinants of financial inclusion in rural India: does gender matter?

Abstract: Since finance is an efficacious instrument for economic development, social inclusion and women empowerment, the present paper examines the determinants of accessing institutional and non-institutional finance across male- and female-headed households in rural India,Multinomial logistic regression is applied for categorizing households' accessing finance in four categories, namely Only Institutional Finance (IF), Only Non-institutional Finance (NIF), Both Sources of Finance (BF) and Neither Source of Finance (N) Both household and state-level determinants have been analysed Household data set is sourced from the Situation Assessment Survey (NSSO, 70th round) and state-level data sets from Basic Road Statistics 2016, Agricultural Statistics at a Glance 2016, Rainfall Statistics of India 2014, database on Indian Economy RBI and Census 2011 Econometric regressions have been evaluated for female-headed households (FHHs), male-headed households (MHHs) and overall pooled households (HHs),Four important findings emerge First, FHHs have a lower probability of accessing IF and a higher probability of accessing NIF vis-a-vis MHHs Second, in general, education levels, monthly household consumption expenditure, land size holding, irrigated area and penetration of scheduled commercial banks favourably influence FHHs accessing IF Third, FHHs belonging to socially disadvantaged castes have a lower probability of accessing IF Fourth, a substantial proportion of FHHs accesses neither IF nor NIF relative to MHHs,The paper thoroughly addresses the issue of accessing finance by FHHs and MHHs, which will further assist policymakers in formulating holistic financial policies for rural India,The paper recommends increasing women's access to financial services as an effective tool for reducing poverty and lowering income inequality in rural India,This article contributes to the scant empirical literature on finance and gender

Islamic financial inclusion determinants in Indonesia: an ANP approach

Abstract: This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.,This study uses the analytic network process (ANP) to gather expert opinions and responses from academics, regulators and practitioners.,The ANP analysis discovered that the level of Islamic financial inclusion in Indonesia is influenced by two main drivers: the supply and the demand. The demand factors for Islamic financial inclusion, ranked based on their level of significance, are as follows: financial literacy (0.27), religious commitment (0.22), socioeconomic factor (0.19) and social influence (0.17), respectively. From the supply side, primary catalysts for Islamic financial inclusion based on their level of importance are human capital (0.32), product and services (0.24), infrastructure (0.18) and policies and regulation (0.17), respectively.,The present study does not include the Islamic insurance sector in its determinant framework of Islamic financial inclusion in Indonesia.,This study serves as a reference for regulators in formulating appropriate policy strategies to strengthen the Islamic financial inclusion in Indonesia.,This study is a pioneer attempt to identify distinctive factors that influence the level of Islamic financial inclusion in Indonesia by analyzing expert opinions from diverse groups of Islamic finance stakeholders.

Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Abstract: The study attempts to explore the determinants of financial inclusion. Subsequently, it examines the effect of financial inclusion on financial well-being of marginalized street vendors in India.,The demand-side analysis of measuring financial inclusion with a sample of 371 marginalized street vendors is adopted. Both exploratory and descriptive research designs are employed in this study. The primary data collection is done by administering the structured interview schedule by using a convenience sampling technique. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) are performed to describe the latent constructs and their hypothetical relationships with adequate empirical evidence.,Out of five dimensions of financial inclusion considered for the study, accessibility, availability, usage and affordability are found to be significant determinants of financial inclusion; however, the financial literacy dimension is found statistically insignificant. Further, the study results confirm that financial inclusion contributes substantially to the well-being of marginalized street vendors.,The outcome of the study will facilitate all the stakeholders including policymakers and financial institutions to enact policy guidelines to ensure financial well-being of the marginalized street vendors through financial inclusion initiatives.,Financial well-being through financial inclusion is possible even without the effect of financial literacy from the unorganized sector perspective specifically marglianized street vendors. Thus, it adds new dimension to the existing literature on demand side analysis of measuring financial inclusion.

Financial Inclusion in India: An Evaluation of the Coverage, Progress and Trends

Abstract: Access to finance by the poor is a prerequisite for poverty reduction and sustainable economic development. Importance of financial inclusion arises from the problem of financial exclusion of nearly 3 billion people from the formal financial services across the world. The study has critically analyzed the issues and challenges involved in financial inclusion for inclusive growth and has also successfully attempted to highlight the factors that can aid in achieving financial inclusion for inclusive growth in India, particularly in the context of the feared global slowdown and negative impact of high inflation on the Indian economy. The paper has also suggested some policy choices for successful implementation of the policy of financial inclusion for sustainable growth of Indian economy. The paper is a significant attempt to understand and emphasize the importance of the topic.

Dividend and Bank Performance in India: Evidence using Panel Data Analysis

Abstract: Dividend has been a matter of concern since the concept of limited liability of the firms came to existence. The uncertainty regarding dividend policy is supposed to hunker down unless we move away from whack-a-mole approach to a long-winded solution to the problem of dividend policy. The issue gets exacerbated because of inclination towards the valuation by the people who call the shots in the firms. This paper explores the association of dividend with the rising NPAs in the Indian banks. The findings of the paper are the testimony to the fact that dividend policy in the banks has issues and need to be checked and corrected. It is recommended in the paper to decouple dividends from the NPA by linking dividend policy with free cash flow. It is also recommended to adopt DVR shares to cater to the aspirations of those investors who do look for consistent dividend policy irrespective of the performance of the banks in a particular year.