The Importance of Convenience and Access in Financial Inclusion: A Study on Postal Network in India

Abstract

This study tried to examine the significant impact of convenience and access in financial inclusion in which we studied the role of post office. Individual and businesses with financial inclusion have access to useful and affordable financial products and services that meet their needs and expectations like transactions, payments, savings, credit, and insurance, delivered responsibly and sustainably. Since 1882, Indian Post offices have provided banking services to all sections of society during the post-liberalization period. Indian Post acted as a banker for Indian villages long before financial inclusion became a buzzword, and Indian post claims to be the country’s first financial inclusion pioneer. Primary data was collected from the respondents through convenience sampling. Structural equation modelling was used to analyse the data collected through questionnaire. The results of this research found that accessibility to the post office has a positive and significant influence on the usage of postal banking services, whereas convenience has a negative significant impact on the usage of postal banking services. The paper also aims to find out the extent of post office in achieving financial inclusion.

Keywords: Accessibility, Banking Services, Convenience, Financial Inclusion, Financial Behaviour.

DOI: 10.7176/RJFA/14-8-05

Publication date: April 30^th 2023