International Journal of Agriculture Extension and Social Development

author(s)
S Bharat, Y Radha, K Suseela, PV Sathya Gopal and V Srinivasa Rao

abstract
The role of financial inclusion in the socio- economic development of the rural households is far appreciable in the changing economic conditions of the country. The present study was conducted during the year 2019-20 with an attempt to analyze the impact of financial inclusion on socio economic development of rural households and the constraints of financial inclusion. A total of 410 rural households of Andhra Pradesh were selected using multistage sampling procedure and 120 non account holders were selected to identify the constraints of financial inclusion. The data on the impact of financial inclusion was analyzed through multiple linear regression using SPSS version 20.0 software and responses collected on constraints of financial inclusion were analyzed using Garrett Ranking. The socio-economic development of rural households was highly influenced by education, number of financial services accessed, number of years of banking, status of usage of banking services and beneficiary of government aided programmes linked to bank at one percent level of significance. Regular usage of financial services paved the way to the positive changes in the socio-economic development as observed from highest regression coefficient (5.537). Among the constraints identified, lack of sufficient and regular income emerged as the top most constraint of financial inclusion. It is suggested to conduct financial literacy camps by the financial literacy centres and the rural bank branches for effective utilisation of banking services by the rural households and thus attain socio-economic development.