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Access to and use of finance in India: does religion matter?

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  • Saibal Ghosh

Abstract

The role and relevance of religion in influencing the access to and use of finance has been an evolving area of research. In this context, exploiting disaggregated household-level data for India, we analyze the role of religion in influencing such behavior. Our findings suggest a significant disparity in both the access to as well as the use of finance by religion. On average, Muslim households are 17% less likely to own a bank account, after controlling for other relevant household and state-level characteristics. Similarly, Muslim households are 8% less likely to use bank account. Finally, we find that the interest rate is a key factor driving the use of formal finance by Muslims in the Indian context.

Suggested Citation

  • Saibal Ghosh, 2020. "Access to and use of finance in India: does religion matter?," Indian Economic Review, Springer, vol. 55(1), pages 67-92, June.
    • Handle: RePEc:spr:inecre:v:55:y:2020:i:1:d:10.1007_s41775-020-00082-6
    DOI: 10.1007/s41775-020-00082-6
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    More about this item

    Keywords

    Religion; Finance; India;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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