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Financial Exclusion: A Theoretical Approach

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  • Kumar, Dr.B.Pradeep

Abstract

The problem of financial exclusion has gained wide currency in recent times owing to the aggressive persuasion of financial sector reforms in India, downsizing government share in nationalized banks, liberalizing the bank licensing policy and allowing the entry of foreign banks. The unfettered competition injected in to the financial sector with liberal agenda has in fact spawned a number of sea changes in the financial scenario. The vigorous pursuit of profit in place of the objective of “social and development banking” has paved the way for a shift from “mass banking” to “class banking” resulting in the exclusion of a segment of population from the mainstream financial framework, who are regarded as “credit unworthy” in financial parlance. The ICT enabled banking services have also kept some people away from the financial services, leading to the technical exclusion of these people. Financial exclusion is not a new phenomenon, although its dimensions have been changed in tune with the policy and technology related changes in recent times. This paper intends to focus on financial exclusion with a theoretical perspective.

Suggested Citation

  • Kumar, Dr.B.Pradeep, 2011. "Financial Exclusion: A Theoretical Approach," MPRA Paper 89864, University Library of Munich, Germany, revised 17 Jun 2011.
    • Handle: RePEc:pra:mprapa:89864
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    File URL: https://mpra.ub.uni-muenchen.de/89864/1/MPRA_paper_89864.pdf
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    References listed on IDEAS

    as
    1. Gerhard Clemenz & Mona Ritthaler, 1992. "Credit markets with asymmetric information : a survey," Finnish Economic Papers, Finnish Economic Association, vol. 5(1), pages 12-26, Spring.
    2. Llanto, Gilberto M., 1989. "Asymmetric Information in Rural Financial Markets and Interlinking of Transactions Through Self-Help Groups," Philippine Journal of Development JPD 1989 Vol. XVI No. 1-e, Philippine Institute for Development Studies.
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Mobile technology supply factors and mobile money innovation: thresholds for complementary policies," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 288-301, September.
    2. Simplice Asongu & Nicholas Odhiambo, 2022. "The role of mobile characteristics on mobile money innovations," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4693-4710, December.
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Mobile technology supply factors and mobile money innovation: thresholds for complementary policies," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 288-301, September.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Bank accounts, bank concentration and mobile money innovations," Working Papers 23/019, European Xtramile Centre of African Studies (EXCAS).

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    More about this item

    Keywords

    Financial Exclusion; Free Market Model; Financial Information; Banks; Financial inclusion;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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