Culture-Oriented Credit Management in Rural Bank as the Driving Factor in Creating Financial Inclusion (Survey in Rural Banks in West Sumatera Province)

2018 ◽  
Vol 1 ◽  
pp. 93
Author(s):  
Hesi Eka Puteri ◽  
Seflidiana Roza
Keyword(s):  
Empirical Evidence ◽  
Rural Areas ◽  
Research Area ◽  
Financial Inclusion ◽  
Local People ◽  
Local Culture ◽  
Driving Factor ◽  
Religious Leaders ◽  
Credit Management ◽  
Unit Of Analysis

This paper shows the empirical evidence about the implementation of local culture in credit management in Rural Banks. This paper is the result of a survey in three districts in West Sumatera Province which were chosen purposively. Sampling areas include Agam district, Lima Puluh Kota districts and Tanah Datar districts. The reason for choosing these three districts as a research area is because of the similarity of socio-demographic conditions and most of the Rural Banks are in this region. There were 38 Rural Banks taken as the unit of analysis in this research. This study reveals that the breadth of outreach varies according to the type of local cultured applied in credit management. Some of the policies include 1) Local cultured-based products and local culture-based services, 2) Involvement of customary or religious leaders, 3) Non-Traditional Collateral, 4) Prioritizing local people as marketing personnel and 5) Credit Assistance Services. Furthermore, this study recommends several policies which have proven to be able to expand the outreach and creating financial inclusion in rural areas, its covering involvement of customary / religious figures as mediator, prioritizing local people as personnel marketing and credit assistance services.

scholarly journals TOLERANSI KEAGAMAAN MASYARAKAT DI DESA GUWA LOR KECAMATAN KALIWEDI KABUPATEN CIREBON

Harmoni ◽  
2020 ◽  
Vol 19 (2) ◽  
pp. 368-390
Author(s):  
Akhsin Ridho
Keyword(s):  
Rural Communities ◽  
Rural Areas ◽  
Role Models ◽  
Phenomenological Research ◽  
Research Area ◽  
Religious Communities ◽  
Religious Leaders ◽  
Religious Rituals ◽  
Religious Understanding

The study, which begins with the existence of differences in religious rituals in rural areas, a tradition that is maintained from time to time, is tolerant, religious, and inclusive aims to determine the process of forming harmony in different communities in religious understanding. Religious spirit is an important reason for this research, which is researched using descriptive qualitative methods through observation of the role of religious leaders who are randomly selected in the phenomenological research area. In this study, it was found that there was a strong interaction between religious leaders and the community through messages to maintain mutual attitudes and speech was the key to establishing a harmonious relationship. The practice of different religious rituals for society is common. These differences are found at the level of branching, not in the main things such as tahlilan, syukuran, mapag sri, sedekah bumi, selametan and other religious rituals. It can be concluded that the role models of regigious figures are the main key to maintaining harmony in the life of religious communities. They provide direct demands on attitudes and actions in society. They educate the community which is internalized through actions on religious practices that are assimilated in customs, culture and rituals related to the needs of religious communities in rural communities and provide new knowledge for the community to maintain mutual religious harmony, side by side in diversity.

Success of Self Help Group – Bank Linkage Program in India under Financial Inclusion

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Ritu Singh
Keyword(s):  
Rural Areas ◽  
Commercial Banks ◽  
Financial Inclusion ◽  
Functional Reach ◽  
Self Help ◽  
Geographical Spread ◽  
The Social ◽  
Linkage Program ◽  
Self Help Group

The ‘social banking’ policies being followed by the country resulted in widening the geographical spread and functional reach of commercial banks in rural areas in the period that followed the nationalization of banks. This paper is concluded with a view that SHG – Bank Linkage program is a success in our country India and helping many people to make their life better.

scholarly journals Facilitating co-production in public services: Empirical evidence from a co-design experience with family caregivers living in a remote and rural area

2020 ◽  
pp. 095148482097145
Author(s):  
Eleonora Gheduzzi ◽  
Niccolò Morelli ◽  
Guendalina Graffigna ◽  
Cristina Masella
Keyword(s):  
Home Care ◽  
Family Caregivers ◽  
Empirical Evidence ◽  
Rural Area ◽  
Public Service ◽  
Rural Areas ◽  
Crucial Role ◽  
Care Agency ◽  
Home Care Agency ◽  
Design Experience

The involvement of vulnerable actors in co-production activities is a debated topic in the current public service literature. While vulnerable actors should have the same opportunities to be involved as other actors, they may not have the needed competences, skills and attitudes to contribute to this process. This paper is part of a broader project on family caregivers’ engagement in remote and rural areas. In particular, it investigates how to facilitate co-production by looking at four co-design workshops with family caregivers, representatives of a local home care agency and researchers. The transcripts of the workshops were coded using NVivo, and the data were analysed based on the existing theory about co-production. Two main findings were identified from the analysis. First, the adoption of co-production by vulnerable actors may occur in conjunction with other forms of engagement. Second, the interactions among facilitators and providers play a crucial role in encouraging the adoption of co-production. We identified at least two strategies that may help facilitators and providers achieve that goal. However, there is a need for an in-depth understanding of how facilitators and providers should interact to enhance implementation of co-production.

Core Principles of Human Factors Science

1994 ◽  
Vol 38 (9) ◽  
pp. 536-540 ◽  
Author(s):  
Thomas J. Smith
Keyword(s):  
Human Factors ◽  
Empirical Evidence ◽  
Unit Of Analysis ◽  
Machine System

This report introduces three core principles that define human factors science, and summarizes conceptual and empirical evidence in support of their validity. The principles are: (1) performance and design are interdependent; (2) the unit of analysis is the human-machine system; and (3) tailor design to the control capabilities of behavior.

scholarly journals A Study on the Impact of Schemes and Programmes of Government of India on Agriculture to Increase Productivity, Profitability, Financial Inclusion, and Welfare of Farmers to Transform them into Modern Society

2021 ◽  
pp. 231-243
Author(s):  
Mahesh K. M. ◽  
P. S. Aithal ◽  
Sharma K. R. S.
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Modern Society ◽  
Modern Technology ◽  
Mobile App ◽  
Financial Inclusion ◽  
Agricultural Products ◽  
Theoretical Concepts ◽  
The Government ◽  
The Impact

Purpose: The foremost intent of this research article is to create awareness about various schemes for the productive sector of agriculture. Through this study, the level of performance of these agricultural schemes and programmes were analysed that will be helpful for the attainment of financial inclusion. Hence it is necessary to know about various schemes and their making to connect the beneficiaries. Agriculture is the basic source of food supply, production, processing, promotion and distribution. Agricultural products contribute to Gross Domestic Product (G.D.P.) and generate employment in rural areas. They transform the lives of the farmers in modern society. The government of India has introduced Minimum Support Price (MPS), MIF, PMKSY, PMFBY, e-NAM, PM-KISAN, PMJDY, PM-KUSUM, PKVY, NAMS, and MGNREGS. The mobile app KisanSuvidha and innovative programmes like Kisan Rail, KrishiUdaan double the farmers’ Income (DFI). These help in transforming village economy, coverage of irrigation, crop insurance, and stabilizing the income. They also ensure financial support, flow of credit and Direct Benefit transfer of subsidies and funds to beneficiaries. Adopting modern technology, farm-based activity, poultry, dairy, forestry, beekeeping and with the support of SHGs which will directly impact productivity, profitability, financial inclusion, and the welfare of farmers in the 21st century and development of the country’s economy. Design/ methodology/approaches: This study is all about the theoretical concepts based on analysis of various schemes and interconnect. Findings and results: This study reveals that the effectiveness of various agricultural programs and also identifies the benefits and beneficiaries of these schemes. Under this research, various financial services, subsidies, funds released, online platform for agricultural products, funds for micro-irrigation, and so on benefits provided by the government of India were studied. Originality/value: Analysed the various schemes and compelled its beneficiaries and develop a modern to achieve financial inclusion and economic growth through the study. Type of Paper: Research Analysis.

scholarly journals ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION IN INDIA

2021 ◽  
pp. 1-5
Author(s):  
Arun.K.V
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Business Models ◽  
Formal System ◽  
Financial Inclusion ◽  
Handheld Devices ◽  
Mobile Banking ◽  
Major Step ◽  
Banking Business

Technology and financial inclusion are the popular coinage in banking parleys in the country. While technological upgradation and mobile banking are catching up so fast, financial inclusion is tardy. Financial inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion, banks cannot reach the un-banked. It is also a major step towards increasing savings and achieving balanced growth. The reach the country is having with technological progress mobile banking has the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge. However, the banking industry’s penetration to un-banked areas is still found sluggish. The role of the Indian banker is challenging. At one end of this spectrum lies the demand to achieve financial inclusion as nearly 50 per cent of the population is yet to be covered under the formal system of banking and at the other end lies the task to fulfil the needs of the existing customers. The first priority for banks is to adopt core banking solution (CBS), including all regional rural banks (RRBs). Next, a multi-channel approach using handheld devices, mobiles, cards, micro-ATMs, branches and kiosks can be used. However, it should be ensured that the transactions put through such front-end devices should be seamlessly integrated with the banks’ CBS. In rural areas, where accessibility is a problem, banks are using the microfinance network and business correspondents and facilitators to bring more people under the ambit of banking services. Capitalising on the huge untapped potential in smaller towns and cities and rendering financial services to this segment of people poses a big challenge. Few banks have explored technology solutions to increase the scale of their microfinance portfolios, with the use of smart cards and core banking solutions. KEYWORDS- Technology, Financial Inclusion, Core Banking, Business Correspondents

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

scholarly journals Innovation and Management by Regional Rural Banks in Achieving the Dream of Financial Inclusion in India: Challenges and Prospects.

2020 ◽  
pp. 222-234
Author(s):  
Anis ur Rehman
Keyword(s):  
Rural Areas ◽  
Uttar Pradesh ◽  
The State ◽  
Financial Inclusion ◽  
Credit Expansion ◽  
Achieving The Dream ◽  
Chi Square ◽  
Political Interference ◽  
Chi Square Test ◽  
The Government

The Regional Rural Banks are government-owned, regionally based and rurally oriented financial institutions specialized in catering to the credit needs of the neglected and weaker sections of the society. In the recent past, RRBs have become a potent mediator for financial inclusion in rural areas. This paper summarizes the innovative methods used by the employees of these banks in deposit mobilizations, credit expansion and recovery of the loan. The primary purpose of the research is to find the problems faced by officials of these banks in marketing their services to the rural customer. The opinions of these bank officials regarding the above factors and the functioning of these banks and their impact on society have also been studied. For this purpose, a sample of 96 bank officials of Aryavart bank and Purvanchal Bank have been taken from the rural areas of Uttar Pradesh. Methodological tools of the research methods were Frequency and Chi-square test of independence which have been used to test the hypotheses developed in the study. The research empirically confirms and theoretically proves that the employees and staff of these two regional rural banks in the state are making their earnest effort to channelize the savings of rural people by mobilization of deposits by motivating them to deposit their surplus money in the regional rural banks. The bank officials are making efforts to extend credit facilities in rural areas to uplift the people economically. The bank officials are facing problems in deposit mobilization, and credit expansion in the rural areas of the state and they are managing these problems very efficiently. Some political interference was found in the functioning of these banks. In the opinion of these bank officials, the overall working of these regional rural banks is proper. The results of the research can be useful for policymakers in the government to understand the hurdles faced by regional rural banks in reaching to the poor and needy sections of the society. The insights from this paper can help the policymakers to craft innovative schemes which enable these banks to reach the most inaccessible customers in rural areas. Keywords Regional Rural Banks, deposit mobilizations, credit expansion, financial inclusion, loan recovery.

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