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In this chapter, the summary of the research work undertaken, and the conclusions
drawn based on the results obtained are furnished. The study was undertaken for Indian
Bank., Circle Office Pondicherry. The overall objective of the study was to Impact Study
of Financial Inclusion Implemented in Pondicherry Union Territory under NPPFI and
Identification of Gaps Existing in Post Implementation Era. The specific objectives of the
study were;

a) To analyze the usage of banking service by the people covered under NPPFI.

b) To analyze the awareness towards the products offered by banks through NPPFI.

c) To analyze the Constraints Existing in the post implementation Era.

d) To study the impact of NPPFI on the standard of living of the beneficiaries.

The case firm (Bank) wanted to increase the usage of banking facilities by large
number of target Customers of NPPFI hence these products (Credit facility, GCC, Health
insurance, Life insurance and Mutual funds are taken to account) were purposively
selected for the present study. Kamraj salai (Urban) city main branch of Indian bank and
Kariamanickam branch (Rural) was purposively selected for the study as preferred by the
case firm (bank).

Customers of Indian bank branches formed the population of the study. The bank
stated that about thousands of people constitute the target customers (NPPFI account
holders) and but very few hundreds use it effectively. Since the study focus only on
individual account holders, individual account holders using No-frill banking facilities
formed as subset of population. List of individual account holders using No-frill banking
facilities was obtained from the bank. From this list 100 customers were selected by
simple random sampling method. 50 where from the urban branch and fifty from the rural

The data collected from the customers included the general characteristics like
age, education, occupation of the customer, house hold type of respondents, monthly
income of the respondent’s family, source of information about Indian bank offerings
through NPPFI to the respondents, frequency of visits to the Bank, utilization of various
service of Indian bank NPPFI products by the respondents, awareness about financial
inclusion facilities among the respondent, Reason for not using the Credit Facility,
response over the effectiveness of the NPPFI over financial management ability and
improving savings, constraints of using Financial inclusion Products

The data collected were analysed by using statistical tools like percentage
analysis, Chi-square, Garret ranking, Regression analysis and Economic Empowerment

General characteristics of sample respondents

It could be inferred that 34 per cent of the sample respondents belonged to the age
group of 35-45 years, followed by 28 per cent in the age group of 25-35 years, 17 per cent
were in the age group of 45-55 years, 15 per cent were in the age group of less than
25 years and the least of 6 percent of respondents were in the age category of above
55 years.

It was found that about 43 per cent of the sample respondents were educated upto
middle school, followed by primary school level contributing 42 per cent respectively,
which is again followed by about 12 per cent of respondents who were illiterate. And
only two per cent of respondents had high school education and one per cent had diploma
qualification respectively.

It could be found that 25 per cent of the respondents were farmers, 25 per cent
were unorganized sector labourers, 21 per cent of respondents were construction workers,
16 percent of respondents were street vendors, and the least of 13 percent were shop

It was found that 60 per cent of the respondents belonged to income group of
3000-5000, followed by 30 per cent of the respondents in the income group of below
rupees 3000, 9 percent of sample respondents were under the income group of 5000-7000
and the least only 1 per cent were in the income group above rupees 10000.
It was found that 64 per cent of sample respondents live in concrete roofed houses
followed by 20 per cent of respondents dwelling in tilled roof houses and the least of
16 per cent living in partially thatched houses. And none of the sample respondents were
in fully thatched house.

It could be inferred that 37 per cent of respondents visit the bank once in a month
and 33 per cent visit whenever required respectively. Followed by 20 per cent of sample
respondent’s visit once in fortnight and the least of only 10 per cent visit the bank every

Awareness about Financial Inclusion Facilities among the Respondent

Most of the sample respondents (34 per cent) came to know about financial
inclusion through bank staffs, followed by 29 per cent of respondents from friends and
neighbours, 24 per cent from extension workers respectively. And only 9 per cent had the
information from relations and least 4 per cent from village leaders and none received
information via news paper and radio

Among the sample respondents most of them. (48 percent) were influenced by
bank officials, followed by 32 per cent were influenced by NGO members, 18 percent
were influenced by SHG members and the least of only 8 percent joined through self

Use of banking facilities by the respondents

It could be found that 48 per cent of the sample respondents didn’t posses accounts
previously due the reason that they have to maintain large balance to keep the account
active, followed by the category of respondent’s i.e.24 per cent who felt accessing back
was not easy. And the remaining 18 per cent and 10 per cent of respondents did not
posses accounts as they were not interested and disliked bank formalities respectively.

Out of the 7 products available to the respondents only the basic one of no-frill
account was accessed by 100 per cent of the sample respondents. Only 15 per cent were
found to be using the credit facility. 5 per cent were found to be using the life insurance
product and none of them were found to be using the health insurance, general credit
card, mutual funds and education scheme.
Perception of the Respondents towards credit offered through NPPFI

When respondents perception were ranked based on some aspect in form of

statement it was found that the content of service provided got the maximum score which
was ranked first ,next followed by procedure of availing credit which was ranked
second. ,which was again followed by rate of interest, timeliness of credit availability, the
treatment of respondents by bank officials and sufficiency of credit got the least score and
trailed behind the chart.

Constraints faced in Using Banking Facilities offered by NPPFI

Even though all the respondents possessed the no-frill account. It was found that
majority were not utilizing it effectively. The reason behind is, 85 per cent of respondents
were not earning enough to use the account, 15 per cent feel that the bank is too far to

With respect to the usage of general credit card among the sample respondents, it
was found that 69 per cent of respondents were unaware of existence of such facility
through Financial Inclusion, 18 per cent felt that credit card is unwanted to them. And
13 per cent were aware of it and also felt it is complex to use.

Regarding the credit facility up to the maximum limit of 25000, it was found that
40 per cent of sample respondents said that easy source of credit from private lenders
make them not to go for bank credit, Followed by 34 percent feeling that getting credit
from bank is a slow process, and 24 per cent of respondent were not aware of credit
facility available through banks.

Regarding the insurance product. It could be found that 60 per cent of sample
respondents feel that lack of knowledge as a constraint, 21 per cent feel that taking
insurance through insurance firm was easier. And the least of 17 per cent feel that there is
no sufficient service from banks as insurance firms provide.

It could be found that 91 per cent of sample respondents were unaware of the term
mutual funds. Followed by 5 per cent responded that the need of mutual fund was not felt
by them. And 4 per cent responded they don’t have enough earning for a mutual fund
Impact of Financial Inclusion

It could be found that 53 per cent of the sample respondents were aware of
banking services, followed by 15 per cent of respondents feel that there was improvement
in savings and financial management ability. And only 12 per cent accept that it will
alleviate poverty from their life. And 5 per cent of respondents feel it had contributed to
their economic development and none respondent positively to that financial inclusion
had brought change in their life style.

It could be found that 60 per cent of sample respondents responded that their
income level had increased to the extent of 500 rupees. Followed by 38 per cent of
respondents responded that their income level has increased to the range of 500-1000
and merely 2 percent said their income rose above rupees 1000.and they also feel the rise
in income was due the lapse in time and not due to Financial inclusion.

And regarding savings concerned, it was found that majority of the respondents
i.e. 57 per cent responded that their savings had not even improved and lies below
100 rupees. Followed by 39 per cent of respondents had their savings improved between
range of 100-500 rupees .and merely 4 per cent of respondents made improved savings
above 500 rupees and none made improved savings above rupees 1000.

The economic empowerment index which was calculated taking into account, the
savings, increase in income and housing condition showed that the empowerment index
was below the average score necessary for economic empowerment, from this it can be
concluded that the NPPFI scheme had not brought any significant change in the life style
and economic status of the people who are supposed to be its beneficiaries


Age, education and, occupation of the customers, monthly income of the family,
respondents house hold type, were not found to significantly influence financial
management ability and improvement in saving and improvement in life style.
Discriminant analysis indicated that education and age of the customer and the customers
frequency of visit to Indian bank were the factors that greatly discriminated users of
credit facilities from non- users of credit facility. It is suggested that the firm must
consider all the above mentioned features while identifying its target customers.

Majority of respondents were willing to use banking but lacked knowledge and
because of its complex. This necessitates providing clear guidance through bank staff,
advertisements and pamphlets to increase awareness and usage of banking facilities. For
the uneducated and customers educated up to primary level. This will increase usage of
financial inclusion banking facilities.

Customers had a positive perception regarding towards the advantages of banking

facilities, whereas the customers were neutral with regard to complexity in using banking.
Hence, the firm should take steps to clarify the customer’s apprehensions regarding
complexity in use of banking facilities by providing more help for them by appointing
some special officers in charge to facilitate banking for those underprivileged people.

This study shows that demographic factors are not affecting their savings of the
respondents, so through proper extension efforts financial inclusion can be achieved and
this can be done by special camps to educate the target people; volunteers from colleges
can be involved to cover large number of population under financial inclusion.

The banks can appoint special task force to look over the progress in financial
inclusion; the banks can also provide loans through community development
organizations rather than expecting people to access bank.

The banks can recruit special money advisors to advice the financially
disadvantaged people. The bank can also provide incentives to the people who are saving
more under this scheme; this will motivate others to use their bank accounts that were not
used currently.