Financial Inclusion in Gadhi Gaupalika
Koski, Sweta (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022060415357
https://urn.fi/URN:NBN:fi:amk-2022060415357
Tiivistelmä
Financial inclusion is considered a tool for improving people's lives, reducing poverty, and advancing the economy. Thus, financial inclusion in recent years has become a top global priority to achieve sustainable economic development by eliminating informal sources of credit. (Nepal Economic Review, 2016.
The purpose of the study was to examine the relationship between financial inclusion and the socio-economic development of the people living in rural Nepal (Gadhi Gaupalika, Nepal). This study attempts to discern and distinguish the importance of financial inclusion in the socio-economic development of the people living in rural Nepal, wherein a large population has little access to financial services, which are critical for a country's overall economic progress.
A structured questionnaire was sent to 150 persons in Gadhi Gaupalika, Nepal, to collect primary data. The study looked at 90 genuine responses, separated among account holders and non-account holders. Secondary data was gathered from a variety of sources, including journals, past studies, and articles.
According to the findings, belonging to a specific age group, gender, and income of the respondents had a more significant impact on bank account ownership or use of financial services. As a consequence of the findings, it is clear that many people borrowed money from friends and money lenders rather than going to a bank. Respondents have just a rudimentary understanding of the various financial services and loans/insurances accessible to them. People did not borrow money from the bank because of documentation, collateral, bribes, and increased interest rates. Cooperative banks were favored by the majority of respondents above commercial banks and other financial institutions.
The fndings point to the necessity for financial education and the government's construction of financial institutions in rural areas. People continue to rely on traditional methods of borrowing money and are unaware of the various financial services accessible to them. Such reliance on traditional methods of managing financial demands and a lack of awareness of accessible financial services would worsen the population's socioeconomic status, perpetuating the vicious cycle of poverty.
The purpose of the study was to examine the relationship between financial inclusion and the socio-economic development of the people living in rural Nepal (Gadhi Gaupalika, Nepal). This study attempts to discern and distinguish the importance of financial inclusion in the socio-economic development of the people living in rural Nepal, wherein a large population has little access to financial services, which are critical for a country's overall economic progress.
A structured questionnaire was sent to 150 persons in Gadhi Gaupalika, Nepal, to collect primary data. The study looked at 90 genuine responses, separated among account holders and non-account holders. Secondary data was gathered from a variety of sources, including journals, past studies, and articles.
According to the findings, belonging to a specific age group, gender, and income of the respondents had a more significant impact on bank account ownership or use of financial services. As a consequence of the findings, it is clear that many people borrowed money from friends and money lenders rather than going to a bank. Respondents have just a rudimentary understanding of the various financial services and loans/insurances accessible to them. People did not borrow money from the bank because of documentation, collateral, bribes, and increased interest rates. Cooperative banks were favored by the majority of respondents above commercial banks and other financial institutions.
The fndings point to the necessity for financial education and the government's construction of financial institutions in rural areas. People continue to rely on traditional methods of borrowing money and are unaware of the various financial services accessible to them. Such reliance on traditional methods of managing financial demands and a lack of awareness of accessible financial services would worsen the population's socioeconomic status, perpetuating the vicious cycle of poverty.