Financial Inclusion and Access to Institutional Credit among Rural Households in Kanniyakumari District

Abstract

Financial inclusion, understood as the process of ensuring access to appropriate financial products and services for all sections of society at an affordable cost, has been a central plank of India's development policy over the last two decades, driven by initiatives such as the Pradhan Mantri Jan Dhan Yojana, expansion of Self-Help Group-bank linkage under the National Rural Livelihood Mission and the rapid growth of digital and mobile banking. Despite considerable progress at the national level, the extent of genuine financial inclusion, measured not merely by bank account ownership but by active and meaningful use of institutional credit, savings and insurance products, continues to vary widely across regions and population groups. This article develops a research framework to examine the level of financial inclusion and access to institutional credit among rural households in Kanniyakumari District, Tamil Nadu, with particular attention to fishing, agricultural and hilly/tribal hamlets that may remain at the margins of the formal financial system. Drawing on the existing literature on financial inclusion, Self-Help Group-bank linkage and financial literacy in rural India, the article proposes objectives, hypotheses, a multi-stage sampling design and statistical tools including percentage analysis, chi-square test and regression analysis and outlines the anticipated patterns of financial access and the barriers to inclusion, along with policy suggestions to strengthen institutional credit delivery and financial literacy in the district