“Financial Inclusion and Economic Development in Rural Areas of Rajasthan”
Dr. Hrideshwer Gupta
D. Litt. (Economics) Research Scholar, Bir Tikendrajit University, Manipur (India)
ABSTRACT
Financial inclusion has emerged as a crucial driver of sustainable economic development, especially in rural areas where access to formal financial services remains limited. In the context of Rajasthan, a state marked by vast geographical diversity, socio-economic disparities, and a predominantly agrarian economy, financial inclusion plays a vital role in reducing poverty and fostering growth. This paper explores the relationship between financial inclusion and economic development in rural Rajasthan by examining the penetration of banking services, microfinance, digital payment systems, and government-led financial schemes. It identifies persistent challenges such as low financial literacy, infrastructural constraints, and socio-cultural barriers that hinder the full realization of inclusion efforts. This study examines the relationship between financial inclusion and economic development in the rural communities focusing on banking access credit availability savings behaviour and adoption of digital financial services a descriptive and analytical design was employed collecting data from 410 rural households in Banswara District of Rajasthan using structured questionnaire complimented by secondary data from government reports financial inclusion service and academic literature the sample was selected through a stratified random sampling technique to ensure representation across income levels occupations and gender data were analysed using quantitative methods including descriptive statistics correlation and regression analysis to access the impact of financial inclusion on income employment and entrepreneurial activities the findings reveal a significant positive relationship between financial access and economic development highlighting the critical role of bank accounts credit savings and digital banking in enhancing rural livelihood and fostering sustainable economic growth.
Keywords: financial inclusion, rural development, credit, banking, agriculture.
