DETERMINANTS OF FINANCIAL INCLUSION IN THE CAUVERY DELTA ZONE: AN EMPIRICAL ASSESSMENT OF FINANCIAL LITERACY, SOCIO-ECONOMIC FACTORS, AND INSTITUTIONAL INTERVENTIONS

Povzetek

Financial inclusion is vital in achieving reasonable access to formal financial systems and enhancing economic engagement of disadvantaged groups. This research empirically evaluates the elements related to financial inclusion in the Cauvery Delta Zone focusing on factors such as financial literacy, government policies and institutional efforts, and socio-economic characteristics. The primary data was obtained from 452 participants using a questionnaire and was subjected to descriptive statistics, reliability analysis, exploratory factor analysis, Pearson correlation and regression methods. The results show good internal consistency for all the measures used in the study while the exploratory factor analysis validates the appropriateness of the measuring instrument. Pearson correlation results provide evidence for a strong positive relationship between financial literacy and financial inclusion (r = 0.886, p < 0.001). Additionally, regression analysis reveals a significant influence of government policies in financial inclusion accounting for 52.0% of change in the dependent variable. Multiple regression analysis shows that financial literacy has the highest effect, followed by socio-cultural and socio-economic factors.