Inclusive Growth through Financial Inclusion on Agriculture

Despite of adequate access to banking services, the volume of transactions were low and respondents were least aware about the latest technological breakthroughs in banking space. Availing loan was not so popular among the respondents with majority of loan accounts being KCC only. Considerable spurt was observed in advances under PSL in Uttarakhand, particularly agriculture advances augmented manifolds in these ten years under the study. There was significant difference in growth rates of total agriculture advances of public and private sector banks. Further, there was no significant difference in growth rates of agriculture advances of USN and Uttarakhand. Status of FI, as measured by Inclusix Score, was found to be satisfactory in the state wherein only three districts had very low FI as compared to other ten districts of the state. MLR analysis established nature and strength of various determinants on rural poverty, a proxy indicator of inclusive growth. It was found that agriculture advances exerted a significant positive impact on inclusive growth of the state.