Analysis of perceptions and attitudes of scheduled commercial bank personnel toward provision of credit to poor and toward financial inclusion process in India

摘要

A bank's role in providing financial services to the poor is debatable. There are no grounds to believe that the banks have been willing or able to operate as development institutions for the poor. McKee (1989, p. 997) noted, however, that given the resources of the banking system, "changing its behavior even at the margin offers the potential to improve the livelihoods of millions of poor people." McKee's view is particularly resonant for India where, although the rural banking sector has an unrivalled physical presence with nearly 33,000 Commercial and Regional Rural Bank branches, the quality of outreach to the poor leaves scope for improving the low recovery rates, impaired viability of bank branches, varying degrees of bureaucratization and politicization and erosion in staff morale. In addition to physical presence, banks offer advantages by being regulated institutions with established administrative and accounting systems, by not being dependent on scarce and volatile donor resources, and by offering a range of financial services. Moreover, for reasons ranging from enhancement of public image to diversification into new markets, some banks are increasingly interested in the microfinance sector. However, when banking reforms required to promote financial inclusion are discussed in lot by academicians, finance experts and RBI, insufficient attention is paid to the possibility that the attitudes of staff, at both branch and institutional levels, may constrain the provision of financial services to the poor and their role in implementation of financial inclusion initiatives. These aspects are the focus of the present research article.