Demand for Financial Services and its Determinants: Micro Empirical Evidences from West Bengal, India

By : Avisek Sen

Page No: 62-70

Abstract
The strength of the economy of a country is closely connected to the soundness and effectiveness of its financial system, in general, and the banking system, in particular. In the Indian scenario, the banking sector plays a great role in the inclusion of groups of people in the formal banking system. Financial inclusion is focused on providing financial services to all sections of the society at a reasonable cost. The traditional measures of financial inclusion are focused on the supply dimension of financial services, but not the demand perspective. After the implementation of financial inclusion drives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), the demand side of financial inclusion gains new importance. This article attempts to recognize some of the demand-based parameters of the financial services after implementation of the PMJDY. The study is based on a primary survey conducted in some selected villages from the Bankura district of West Bengal, where the banking network is not adequate. Besides, the study also evaluates the effects of some socioeconomic factors of the demand of financial services. The empirical evidences show that the asset composition of the household and the income level of the family are effective in determining the demand for financial services.

Author :
Avisek Sen : Assistant Professor of Commerce, Kabi Jagadram Roy Government General Degree College, Mejia, Bankura, West Bengal, India.
 

DOI: https://doi.org/10.32381/PROD.2023.64.01.6