G. Arunkumar 2

The International journal of analytical and experimental modal analysis ISSN NO: 0886-9367
FACTORS DETERMINING DIGITAL FINANCIAL INCLUSION

IN TIRUNELVELI DISTRICT
Dr. C. PARAMASIVAN
Assistant Professor
PG and Research Department of Commerce
Periyar E.V.R College (Autonomous), Tiruchirappalli-23
G. ARUNKUMAR
Ph.D full time Research Scholar
PG and Research Department of Commerce
Periyar E.V.R College (Autonomous), Tiruchirappalli-23
ABSTRACT
Digital financial services can be more convenient and affordable than traditional
banking services , enabling low-income and poor people in developing countries to save and
borrow in the formal financial system earn a financial return.It is vital to the public as it
boosts security for their cash and it’s more convenient compared to keeping money at home
traveling with the money.This paper made an attempt to discuss factors determining digital
financial inclusion in Tirunelveli district with respect to Availability of Banking facilities,
Availability of ATM facilities, Awareness on Govt. Policy and schemes, Affordability of
financial inclusion schemes, Follow of procedures, Approaches of authorities, Approaches of
authorities, Availability of internet connectivity, Accessibility of e-Sevai Centres,
Technology application and Simplification of KYC norms.
Key words: Digital financial inclusion, e-sevai, financial system, internet connectivity,
ATM, banking service.
INTRODUCTION
The banking industry shows tremendous growth in branch penetration and ATMs
penetration during the last few decades. It has reached significant improvements in all the
areas relating to financial feasibility, profitability and competitiveness. Even though these
improvements, there are concerns that banks have not been able to include vast segment of
the population, especially the under privileged sections of the society, into the fold of basic
banking services. Efforts are being taken to study the causes of financial exclusion and design
strategies to ensure financial inclusion of the poor and disadvantaged at the global level.
Digital financial inclusion has several benefits to financial services users, digital finance
providers, governments and the economy. Access to digital technologies permits a wider
range of financial services such as online banking, mobile banking etc. The technology has
spread internet banking, mobile banking, e-wallets, mobile wallets, and credit and debit
cards. It gives several benefits like convenience, easy financial transactions etc. to the
Volume XI, Issue IX, September/2019 Page No:2296

customer. This paper made an attempt to discuss factors determining digital financial
inclusion in Tirunelveli district with respect to Availability of Banking facilities, Availability
of ATM facilities, Awareness on Govt. Policy and schemes, Affordability of financial
inclusion schemes, Follow of procedures, Approaches of authorities, Approaches of
authorities, Availability of internet connectivity, Accessibility of e-Sevai Centres,
Technology application and Simplification of KYC norms.
REVIEW OF LITERATURE
Gurpreet Kaur (2015) Concluded that discussed digital India will make easy way to
fulfill the objective of financial inclusion. About the information technology that
digitalization of financial services should increase the growth rate of financial inclusion.
Financial inclusion is not a onetime effort. It must take time to connect every citizen to the
banking system but now it seems easy to reach to the people by the electronic modes. With
the digital India initiative every person would like to make payments through electronic
means. Use of electronic means will increase the banking habits of the low income section of
the society. The zero or minimum charge of banking services will also lead to the banking
habits.
Jani and Tere (2015) has studied the different services and governance on demand
by the citizens of India. They also discussed the infrastructed in required to every citizen to
avail the services provided under digital India. They also discussed the new definition of IT
that IT (Indian talent) + IT (information technology) =IT (India tomorrow).
Jatinder Kaur (2017) suggested the high positive correlation between urbanization
and financial inclusion index shows that banking sectors are still urban oriented. Merely
opening of bank branches in unbanked areas and opening of bank accounts will not bring
about financial inclusion moderately it is the access to finance which is needed to promote
financial inclusion and in terms of this indicator state has performed very poorly. So dynamic
efforts are required to promote financial inclusion and check the inter-district discrepancy.
Neha Dangi and Pawan Kumar (2013) mentioned for achieving complete financial
inclusion and for inclusive growth, the RBI, Government, NABARD and the implementing
agencies should have to put their minds and hearts together so that the financial inclusion
would be taken forward. There are several ways to implement the proper financial inclusion
regulation in our country and access to financial services should be made through SHGs and
MFIs. Hence, financial inclusion is a big challenge which India needs to effort to make it
complete successfully.

Paramasivan C and Ganeshkumar V (2013) they recommended the banking

technology has progressed fast enough and more importantly the realization that the poor is
bankable has the poor can access bank. Various measures which the government of India
should implement or which are under implementations but should be executed in a more
effective manner through micro finance institutions, business facilitators and business
correspondents. Our very old post offices will be an ideal channel to pursue the future long
term goals of agency banking especially in rural India.
Research Problem
There are several problems are faced by the vulnerable group such as lack of access to
credit among the rural households, the problem of giving the unbanked people an access to
financial services, the high cost of access of the devices required for cashless transactions,
increase in the rate of internet frauds, lack of adequate internet security provided with ATM
cards and made these modes less safe. Success of digital financial inclusion is depends on
various factors such as Availability of Banking facilities, Availability of ATM facilities,
Awareness on Govt. Policy and schemes, Affordability of financial inclusion schemes,
Follow of procedures, Approaches of authorities, Approaches of authorities, Availability of
internet connectivity, Accessibility of e-Sevai Centres, Technology application and
Simplification of KYC norms. With this aspect, the present study is mainly concerned with
what the various factors are determining digital financial inclusion in Tirunelveli District
during the study period.
Research Methodology
The present study is descriptive in nature by using primary data which have collected
through interview scheduled. Respondents were selected on the basis of stratified random
sampling techniques.
Statistical tools for analysis
The researcher has used percentage analysis, simple mean and standard deviation for
analysis and interpretation of the data.
Pilot study
Sample size for the pilot study comprises 50 respondents from Tirunelveli district.
Interview schedule have used to collect the data.
Study Area
The study area is Tirunelveli district of Tamil Nadu. It is considered ‘universe’ for the
purpose of data collection and analysis of data.

Objectives of the Study

1. To study demographic profile of the respondents.
2. To analysis factors determining the digital financial inclusion in Tirunelveli District.
TABLE No. 1 The Demographic Profile

Profile Category Total No. of Percentage
Respondent
Male 48.0 48.0
Gender Female 52.0 52.0
Total 100.0 100.0
21-30 11 22.0
31-40 11 22.0
Age 41-50 10 20.0
51 year & above 18 36.0
Total 50 100.0
FC 2 4.0
BC 9 18.0
Community MBC 20 40.0
SC 19 38.0
Total 50 100.0
Married 48 96.0
Marital Status Unmarried 2 4.0
Total 50 100.0
Illitrate 7 14.0
Primary level 18 36.0
Literacy Level School level 19 38.0
Graduate 6 12.0
Total 50 100.0
Rural 23 46.0
Location Urban 27 54.0
Total 50 100.0
Nuclear Family 30 60.0
Family Type Joint Family 20 40.0
Total 50 100.0
Up to 2 5 10.0
3-4 36 72.0
Family size
5 & above 9 18.0
Total 50 100.0
Farmer 18 36.0
Daily wages 21 42.0
Occupation Govt. Employee 4 8.0
Retired Employee 7 14.0
Total 50 100.0
Below 1,00,000 27 54.0
1 lakh - 2 lakh 12 24.0
Annual Income
2 lakh & above 11 22.0
Total 50 100.0

Table No. 1 indicates the demographic profile of the respondents with respect to the
study in Tirunelveli District. According to the gender, 48 per cent of respondents (48) are
men and 55 per cent of respondent (52) are women. According to the age, there are highest of
36 per cent of respondents (18) age group between 51 year and above and the lowest of 20
per cent of respondents (10) age group between 41to 50 year. According to the community,
there are highest of 40 per cent of respondents (20) belongs to MBC and the lowest of 4 per
cent of respondents (2) belongs to FC. As for marital status, the highest of 96 per cent of
respondents (48) are married and the lowest of 4 per cent of respondents (2) are unmarried.
With reference to the literacy level, the highest of 38 per cent of respondents (19) are school
level and the lowest of 12 per cent of respondents (6) are graduates. Concerning location,
there are 46 percent of respondents (23) residence within rural areas and 54 per cent of
respondents (27) residence within urban areas. Regarding family type, there are 60 percent of
respondents (30) are nuclear family and 40 per cent of respondents (20) are joint family. With
regards to family size, the highest of 72 per cent of respondents (36) have 3 – 4 numbers and
the lowest of 10 per cent of respondents (5) have up to 2 numbers. With regards to
occupation, the highest of 42 per cent of respondents (21) are daily wages and the lowest of 8
per cent of respondents (4) are government employee. With reference to annual income, the
highest of 54 per cent of respondents (27) annual income is below Rs. 1, 00,000 and the
lowest of 22 per cent of respondents (11) annual income is Rs. 2, 00,000 and above.
TABLE No. 2 Availability of Banking facilities
Factors Level Total No. of Percentage
Respondent
Strongly Agree 7 14.0
Agree 17 34.0
Availability of Moderate 8 16.0
Banking facilities Disagree 13 26.0
Strongly Disagree 5 10.0
Total 50 100.0
Source: Primary data
As regards availability of banking facility, 14 per cent of respondents strongly agree,
34 per cent are agree, 16 per cent are moderate agree 26 per cent are disagree and 10 per cent
are strongly disagree towards factors determining digital financial inclusion in Tirunelveli
district.

TABLE No. 3 Availability of ATM facilities

Total No. of
Factors Level Percentage
Respondent
Agree 18 36.0
Availability of ATM Moderate 11 22.0
facilities Disagree 13 26.0
Total 50 100.0
As for availability of ATM facilities, 10 per cent of respondents strongly agree, 36 per
cent are agree, 22 per cent are moderate agree 26 per cent are disagree and 6 per cent are
strongly disagree towards factors determining digital financial inclusion in Tirunelveli
district.
TABLE No. 4 Awareness on Govt. Policy and schemes
Respondent
Agree 13 26.0
Awareness on Govt. Moderate 11 22.0
Policy and schemes Disagree 15 30.0
Total 50 100.0
As regards awareness on Govt. policy and schemes, 12 per cent of respondents
strongly agree, 26 per cent are agree, 22 per cent are moderate agree 30 per cent are disagree
and 10 per cent are strongly disagree towards factors determining digital financial inclusion
in Tirunelveli district.
TABLE No. 5 Affordability of financial inclusion schemes
Respondent
Agree 13 26.0
Affordability of
Moderate 12 24.0
financial inclusion
Disagree 17 34.0
schemes
Total 50 100.0
With reference to affordability of financial inclusion schemes, 10 per cent of
respondents strongly agree, 26 per cent are agree, 24 per cent are moderate agree 34 per cent

are disagree and 6 per cent are strongly disagree towards factors determining digital financial
inclusion in Tirunelveli district.
TABLE No. Determining follow of procedures
Total No. of
Respondent
Agree 4 8.0
Follow of Moderate 19 38.0
procedures Disagree 15 30.0
Total 50 100.0
Concerning the follow of procedures, 10 per cent of respondents strongly agree, 8 per
cent are agree, 38 per cent are moderate agree 30 per cent are disagree and 14 per cent are
district.
TABLE No. 7 Approaches of Authorities

Total No. of
Respondent
Agree 8 16.0
Approaches of Moderate 7 14.0
authorities Disagree 23 46.0
Total 50 100.0
As per the approaches of authorities, 14 per cent of respondents strongly agree, 16
per cent are agree, 14 per cent are moderate agree 46 per cent are disagree and 10 per cent are
district.
TABLE No.8 Availability of Internet Connectivity

Respondent
Agree 18 36.0
Availability of Moderate 9 18.0
internet connectivity Disagree 7 14.0
Total 50 100.0

As regards availability of internet connectivity, 28 per cent of respondents strongly

agree, 36 per cent are agree, 18 per cent are moderate agree 14 per cent are disagree and 4 per
cent are strongly disagree towards factors determining digital financial inclusion in
Tirunelveli district.
TABLE No.9 Accessibility of e-Sevai Centres

Total No. of
Respondent
Agree 9 18.0
Accessibility of e- Moderate 12 24.0
Sevai Centres Disagree 17 34.0
Total 50 100.0
As regards accessibility of e-Sevai Centres, approaches of authorities, 10 per cent of
are disagree and 14 per cent are strongly disagree towards factors determining digital
financial inclusion in Tirunelveli district.
TABLE No.10 Technology Application

Total No. of
Respondent
Agree 11 22.0
Technology Moderate 11 22.0
application Disagree 9 18.0
Total 50 100.0
As regards technology application, approaches of authorities, 32 per cent of
are disagree and 6 per cent are strongly disagree towards factors determining digital financial
inclusion in Tirunelveli district.
TABLE No.11 Simplification of KYC norms
Respondent
Agree 5 10.0
Simplification of Moderate 14 28.0
KYC norms Disagree 15 30.0
Total 50 100.0

With reference to simplification of KYC norms, 8 per cent of respondents strongly

agree, 10 per cent are agree, 28 per cent are moderate agree 30 per cent are disagree and 24
per cent are strongly disagree towards factors determining digital financial inclusion in
TABLE No.12 Digital financial inclusion
Standard
Sl. No Factors Mean
Deviation
1. Availability of Banking facilities 2.840 1.2513
2. Availability of ATM facilities 2.820 1.1192
3. Awareness on Govt. Policy and schemes 3.000 1.2122
4. Affordability of financial inclusion schemes 3.000 1.1249
5. Follow of procedures 3.300 1.1294
6. Approaches of authorities 3.220 1.2501
7. Availability of internet connectivity 2.300 1.1473
8. Accessibility of e-Sevai Centres 3.240 1.2048
9. Technology application 2.440 1.2803
10. Simplification of KYC norms 3.520 1.1993
Table No. 12 Shows that the mean and standard deviation on factors determining the
digital financial inclusion. The availability of banking facilities mean value is 2.840 and
standard deviation is 1.2513, availability of ATM facilities mean value is 2.820 and standard
deviation is 1.1192, awareness on Govt. policy and schemes mean value is 3.000 and
standard deviation is 1.2122, affordability of financial inclusion schemes mean value is
3.000 and standard deviation is 1.1249, Follow of procedures mean value is 3.300 and
standard deviation is 1.1294, approaches of authorities mean value is 3.220 and standard
deviation is 1.2501, availability of internet connectivity mean value is 2.300 and standard
deviation is 1.1473, accessibility of e-Sevai Centres mean value is 3.240 and standard
deviation is 1.2048, technology application mean value is 2.440 and standard deviation is
1.2803 and simplification of KYC norms mean value is 3.520 and standard deviation is
1.1993.
Findings
1. It is observed that 34 per cent of respondents were agreed availability of banking
facility as major factors determining digital financial inclusion in Tirunelveli district.
2. It is found that 36 per cent of respondents were agreed availability of ATM facilities
as major factors determining digital financial inclusion in Tirunelveli district.

3. It is noted that 30 per cent of respondents were disagreed awareness on Govt. Policy
and schemes as major factors determining digital financial inclusion in Tirunelveli
district.
4. It is found that 34 per cent of respondents were disagreed Affordability of financial
inclusion schemes as major factors determining digital financial inclusion in
5. It is noted that 38 per cent of respondents were moderate follow of procedures as
major factors determining digital financial inclusion in Tirunelveli district.
6. It is observed that 46 per cent of respondents were disagree Approaches of authorities
as major factors determining digital financial inclusion in Tirunelveli district.
7. It is noted that 36 per cent of respondents were agree availability of internet
connectivity as major factors determining digital financial inclusion in Tirunelveli
district.
8. It is found that 34 per cent of respondents were disagree Accessibility of e-Sevai
Centres as major factors determining digital financial inclusion in Tirunelveli district.
9. It is noted that 32 per cent of respondents were strongly agreed Technology
application as major factors determining digital financial inclusion in Tirunelveli
district.
10. It is observed that 30 per cent of respondents were disagree Simplification of KYC
norms as major factors determining digital financial inclusion in Tirunelveli district.
11. It is found that the highest mean score value falls on simplification of KYC norms
(3.520) and the lowest mean score value falls on availability of internet connectivity
(2.300).
12. It is observed that the highest standard deviation value falls on technology application
(1.2803) and the lowest standard deviation value falls on availability of ATM
facilities (1.1192).
Conclusion
The provision of digital finance involves the participation of different players such as
banks financial institutions, mobile network operators, financial technology providers,
regulators, agents, chains of retailers and clients. It is observed that digital financial inclusion
is one of the innovative and technology enabled system which helps to speedy and easy way
of reaching the financial service to the needed people. After implementing of the digital
financial inclusion delivery of financial services particularly social security schemes such as
MGNREGA, PAHAL, NSAP, PDS, Student Scholarship etc. availability of banking facility

and e-sevai centre are the major factors determining digital financial inclusion in Tirunelveli
District.
Reference
1. Gurpreet Kaur (2015),“Financial Inclusion and Digital India”, International Journal
of Business Management, ISSN NO. 2349-3402 VOL. 2(2), 2015.
2. Jani, J. and Tere, G. (2015), “Digital India: A need of Hours”, International journal of
Advanced Research in Computer Sciences and Software Engineering, Vol.5, No.8.
3. Jatinder Kaur (2017), “Factors affecting financial inclusion: A case study of Punjab”,
International Journal of Advanced Research and Development, ISSN: 2455-4030
Impact Factor: RJIF 5.24 /Volume 2; Issue 6; November 2017; Page No. 422-426.
4. Neha Dangi and Pawan Kumar (2013), “Current Situation of Financial Inclusion in
India and Its Future Visions”, International Journal of Management and Social
Sciences Research (IJMSSR) ISSN: 2319-4421, Volume 2, No. 8, August 2013.
5. Paramasivan C and Ganeshkumar V (2013), “Overview of Financial Inclusion in
India” International Journal of Management and Development Studies Volume No. 2
(2013), Issue No. 3 (March) ISSN (Online): 2320-0685.

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The International journal of analytical and experimental modal analysis ISSN NO: 0886-9367

FACTORS DETERMINING DIGITAL FINANCIAL INCLUSION

Volume XI, Issue IX, September/2019 Page No:2296

Volume XI, Issue IX, September/2019 Page No:2297

Paramasivan C and Ganeshkumar V (2013) they recommended the banking

Volume XI, Issue IX, September/2019 Page No:2298

Objectives of the Study

TABLE No. 1 The Demographic Profile

Volume XI, Issue IX, September/2019 Page No:2299

Volume XI, Issue IX, September/2019 Page No:2300

TABLE No. 3 Availability of ATM facilities

Volume XI, Issue IX, September/2019 Page No:2301

TABLE No. 7 Approaches of Authorities

TABLE No.8 Availability of Internet Connectivity

Volume XI, Issue IX, September/2019 Page No:2302

As regards availability of internet connectivity, 28 per cent of respondents strongly

TABLE No.9 Accessibility of e-Sevai Centres

TABLE No.10 Technology Application

Volume XI, Issue IX, September/2019 Page No:2303

With reference to simplification of KYC norms, 8 per cent of respondents strongly

Volume XI, Issue IX, September/2019 Page No:2304

Volume XI, Issue IX, September/2019 Page No:2305

Volume XI, Issue IX, September/2019 Page No:2306

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