Mapping Financial Awareness and Inclusion Disparities among Farming Communities: Evidence from Ramanagara District, Karnataka

Author(s): Reena TN and Prabhu C Basarkod

Abstract:

Financial inclusion is widely regarded as a precondition for inclusive rural growth, yet the awareness that underlies its meaningful use is rarely mapped at sub-district resolution. This study examines regional disparities in financial-product awareness and inclusion among 400 farming households across the five taluks of Ramanagara district, Karnataka, using a stratified multi-stage sample and a structured, interview-administered questionnaire. A composite Financial Inclusion Index (FII) was constructed from six access/usage indicators, and awareness, growth, and institutional-perception constructs were validated through confirmatory factor analysis (KMO = 0.842; CFI = 0.981; RMSEA = 0.048). Kruskal–Wallis and ANOVA tests show that both financial awareness (H = 35.242, p < 0.001) and inclusive growth (F = 9.106, p < 0.001) vary significantly across taluks, with Channapatna and Harohalli leading and Magadi lagging on inclusion, and Kanakapura leading on perceived growth. Ordinal probit and OLS models confirm that inclusion (β = 1.935, p < 0.001) and banking perception (β = 0.121, p = 0.004) are significant positive predictors of inclusive growth, while among banks, self-help groups (SHGs) and business correspondents (BCs), only the BC channel significantly builds financial literacy (β = 0.104, p = 0.005). The findings support a perception-and-intermediary-led rather than a classroom-literacy-led model of financial inclusion, with clear implications for spatially targeted policy design.

keywords:
Financial inclusion; financial awareness; regional disparity; farming communities; Ramanagara; Karnataka; inclusive growth

Pages: 166-169     |    13 View     |    2 Download