Reviewing Financial Inclusion: Evidence from International Literature Study

Abstract

This study aims to analyze the present status of financial inclusion and identify key topics within this field, such as the determinants of financial inclusion, the evaluation and measurement of financial inclusion, and the relationship between financial growth and financial inclusion in India. This compilation assimilates substantial viewpoints from several scholars and specialists, so offering a more exhaustive portrayal of the financial inclusion domain inside a singular source. Several indices have been developed to measure financial inclusion, including the Maya Declaration, the Global Financial Inclusion Index, the Index of Financial Inclusion (IFI), and the 3 x 3 x 3 matrix approach. The utilization of CRISIL inclusix, a comprehensive index designed to monitor the progress of financial inclusion in India at the district level, provides valuable insights into the present status of financial inclusion growth in the country. The findings indicate a potential route to achieve universal financial inclusion, emphasizing the need of establishing physical connectivity across all channels and encouraging active engagement from many stakeholders. Banks, post offices, and self-help groups (SHGs) are identified as key entities capable of promoting inclusive economic development through financial inclusion. Financial inclusion offers a potential that is mutually advantageous for both suppliers of financial services and those who use these services. Hence, it is imperative for individuals to utilize this resource and contribute towards the attainment of the goal of complete financial inclusion. The survey comprises a total of 75 publications published between the years 2005 and 2017. The chosen time frame was deliberately picked to encompass both contemporary and early issues within the subject, ensuring a comprehensive scope for the study.

Keywords: Financial Inclusion, Financial Determinants, Financial Measurement