Financial Inclusion among Agricultural Households in Uttarakhand

The present study has examined the extent of financial inclusion and constraints faced by agricultural households in Uttarakhand. The primary data were collected from 60 agricultural households through the personal interview method, supplemented by secondary data to accomplish the objective. The study found that all sample households were financially included in having a bank account. Despite having access to institutional credit, about 22 per cent of sample households also depended on non-institutional sources. Insurance coverage was found to be limited to 55 per cent of households. The usage of modern financial services like Internet banking, mobile banking, and UPI was very low. Major constraints faced by households under study were low income followed by lack of awareness, a requirement of collateral, claim settlement difficulties, irrelevant financial products, and long processing time for loans. Imparting financial education at the school level, organizing financial literacy camps at the village level, promoting insurance products and adopting a targeted approach will encourage the use of financial services among agricultural households.