An inquiry into the Impact of Financial Inclusion on Rural Households

At present many developing countries have either launched their national strategy for financial inclusion or are working to develop a sustainable inclusive strategy. The present study emphasises the need to understand various channels through which financial deepening can happen for rural poor particularly in the developing countries in the world. The study identifies various factors influencing financial inclusion with special reference to microfinance focusing on the constituents and impact of it on the rural poor. It uses advanced statistical methods like the structural equation modeling (SEM) to explore the constituent variables that explain financial inclusion in a holistic manner. Through this it aims to better understand the statistically significant relationships and interrelationships between the latent construct of financial inclusion and its impact on different outcome variables using empirical data collected from the field using structured methodology. On the basis of the conclusions arrived it suggests measures which would help in the formulation of strategies with respect to financial inclusion for the rural poor.