Financial Inclusion in Rural India: A Case Study of Mahuapur

  • Soumyakanta Mohakud Graduate Student, Xavier School of Rural Management
  • Akul Singh Graduate Student, Xavier School of Rural Management
  • Sujit Jagdale Professor, Xavier School of Rural Management
  • Anand Pandey Research Scholar, NIT Trichy; Founder Director, Fundamental Action and Research Foundation, India
  • Badri Narayanan Advisor, Fundamental Action and Research Foundation, India; Founder-Director, Infinite Sum Modelling USA and Affiliate Faculty Member, University of Washington Seattle
Keywords: Financial Inclusion, Pradhan Mantri Jan Dhan Yojana (PMJAY), Banks, Microfinance


Financial Inclusion is undoubtedly a key driver of economic growth and poverty alleviation. It is an important driver to alleviate poverty and bring in economic upliftment while reducing social exclusion. This study focuses on financial inclusion in the Mahuapur Village at Bhadohi District of Uttar Pradesh, focusing on incomes and expenditures, bank loans and subsidies, and general awareness around money. We interviewed households with varied socioeconomic backgrounds to gauge the knowledge and use of credit systems and government policies, as well as the plans and aspirations of the people. Our findings broadly suggest that social structure plays a significant role in the overall development of the village, and the poor need to be acknowledged to make a change. Due to decreasing farm size per family, over time the income from the non-agricultural forms of occupation has taken pre-dominant role over the agriculture and cultivation-based income. Although there is a positive correlation between income and food, the consumption habits across the caste system remain relatively stable. The amount of money spent on food, Pradhan Mantri Jan Dhan Yojana (PMJAY) has a positive impact in terms of saving habits and access to banks but Self Help Groups (SHGs) formation and penetration of Microfinance are necessary steps to achieve inclusion of the unserved and the underserved in the mainstream banking practices.