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Financial Inclusion and Socio-economic Development: An Empirical Case Study with Reference to Kerala Gramin Bank

Vol 7 , Issue 2 , July - December 2020 | Pages: 136-157 | Case Study  

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Author Details ( * ) denotes Corresponding author

1. * R. Vasanthagopal, Professor, Finance and HRM, School of Distance Education, University of Kerela, Thiruvananthapuram, Kerala, India (
2. K. K. Damodaran, Principal, Government College, Government College Malappuram, Kerala, India (

Rural development is considered as the way and target of India's planned development efforts. It implies both the economic betterment of people as well as greater social transformation. To accelerate such a process, people's participation and financial support by way of making the funds available in time are of paramount importance. Among a host of financial agencies that cater to the needs of rural people, regional rural banks (RRBs) are the official organs of the government of India, to interveve in the rural financial market. Kerala Gramin Bank is an RRB established with the specific objective of making the benefit of the formal source of finance available at the local level to support the productive activities in the rural areas and thus to build an inclusive financial system to overcome poverty. This empirical study conducts a perceptive analysis of the role played by the Kerala Gramin Bank in improving the socio-economic status of the customers through its inclusive practices. The analysis based on the opinion of the customers reveals that the bank has contributed significantly to the socio-economic progress of the State through increased employment, income, savings, involvement in socio-cultural institutions, and relieving customers from the repression of money lenders, among others.


Financial inclusion; Regional rural bank; Rural development; Socio-economic growth.

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