Is Financial Inclusion of Education Providers Cognizant: A study based on University employees

Abstract

Financial inclusion is recognized as one of the major goals of development and its importance is increasingly felt in the current scenario. The government efforts are largely directed towards increasing the banked population; thereby ignoring a considerable section of population and narrowing the concept of financial inclusion. Hence, the present study extends the existing studies to education providers, i.e., university employees working in close proximity to financial services and potential labor force. The study based on a primary survey of 150 employees of University of Rajasthan reveals that modern means of banking do not enjoy universal acceptance. Saving and investment behavior of employees is governed by precautionary motive and non-financial assets. A financial inclusion index constructed using PCA reveals that employees aged 41 years and above, less educated and earning up to 50000 per month depicted low financial inclusion. Informal sources particularly media emerged as the major source of information resulting into less informed financial decision-making. Thus, the study highlights limited role of education for high level of financial inclusion and cautions against preconceived notion of considering a specific sub-group as the need of interventionsFinancial inclusion is recognized as one of the major goals of development and its importance is increasingly felt in the current scenario. The government efforts are largely directed towards increasing the banked population; thereby ignoring a considerable section of population and narrowing the concept of financial inclusion. Hence, the present study extends the existing studies to education providers, i.e., university employees working in close proximity to financial services and potential labor force. The study based on a primary survey of 150 employees of University of Rajasthan reveals that modern means of banking do not enjoy universal acceptance. Saving and investment behavior of employees is governed by precautionary motive and non-financial assets. A financial inclusion index constructed using PCA reveals that employees aged 41 years and above, less educated and earning up to 50000 per month depicted low financial inclusion. Informal sources particularly media emerged as the major source of information resulting into less informed financial decision-making. Thus, the study highlights limited role of education for high level of financial inclusion and cautions against preconceived notion of considering a specific sub-group as the need of interventions