A Study on the Impact of Financial Inclusion on Rural Development in Odisha

Abstract

Financial inclusion (FI) stands out as a prominent issue, involving the active participation of the Reserve Bank of India and scholars. India is diligently embracing optimal approaches to bolster financial inclusion as a significant portion of rural households continue to face limited access, underscoring the critical significance of addressing this matter in rural India. Odisha is a state in India with a significant proportion of its population living in rural areas. By promoting financial access and literacy, FI can contribute significantly to inclusive development in the state. Financial Inclusion is of paramount importance for Odisha's socio-economic development. Although extensive literature explores the global ramifications of financial inclusion concerning socio-economic development and women's empowerment, there is a noticeable gap in research when it comes to the Indian context, particularly in the state of Odisha. Therefore, the primary objective of this study is to offer a comprehensive understanding of the role of FI in driving rural development within the state of Odisha. The outcomes of this study substantiate the concept that FI encompasses efforts to engage a significant segment of the populace in the trajectory of rural development through the provision of a wide array of financial services. The integration of FI in Odisha has the potential to make a considerable impact on rural development, ultimately leading to elevated living standards for its inhabitants. By extending access to formal financial services, the state can empower its residents and pave the path toward a more inclusive and prosperous society.