Awareness and Barriers to the Adoption of Financial Inclusion Schemes, Products and Services among Rural Women: Evidence from Mysuru District, Karnataka

This study examined the level of awareness and the barriers affecting the adoption of financial inclusion initiatives among rural women in Mysuru District. The findings reveal that although financial inclusion programmes have achieved considerable outreach, several challenges continue to restrict their effective utilization. The socio-economic profile of the respondents indicates that most rural women belong to lower-income households, possess relatively low educational qualifications and are primarily dependent on agriculture and informal occupations for their livelihood. Despite these limitations, all respondents possessed bank accounts, demonstrating the success of government and banking initiatives in extending formal banking access to rural areas. The study found that a majority of respondents were aware of government-sponsored financial inclusion schemes and banking services. Awareness was relatively higher regarding pension schemes, agricultural loans and self-help group-linked financial services. However, awareness of investment-oriented products, digital financial services, entrepreneurship schemes and advanced financial instruments remained considerably low. This suggests that financial inclusion has largely succeeded in creating access but has not fully translated into comprehensive financial literacy and informed utilization. The study further identified three major categories of barriers affecting financial inclusion adoption: availability barriers, affordability barriers and ease of access barriers. Among these, ease of access barriers emerged as the most critical challenge. Procedural complexities, stringent KYC requirements, documentation formalities, rigid eligibility norms and difficulties in obtaining credit facilities significantly hindered participation in financial inclusion programmes. Affordability-related barriers such as loan repayment burdens, hidden charges and penalty costs also discouraged effective utilization. Availability-related barriers, although comparatively moderate, reflected gaps in the consistent provision of essential financial services and accessibility of multiple schemes through banking channels. The regression analysis confirmed that all three categories of barriers significantly influence the adoption of financial inclusion initiatives among rural women. The model explained 53.4 percent of the variation in adoption behaviour, indicating substantial explanatory power. Ease of access barriers exerted the strongest negative influence, followed by affordability and availability barriers. The rejection of the null hypothesis establishes that reducing these barriers is essential for improving the adoption and effectiveness of financial inclusion services. Overall, the study concludes that while significant progress has been made in extending banking access to rural women, meaningful financial inclusion requires more than account ownership. Enhancing awareness, simplifying procedures, reducing financial burdens and improving service delivery are essential for ensuring the effective participation and economic empowerment of rural women through financial inclusion initiatives.

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