Financial Inclusion and Credit Cooperatives: A One-Stop Solution for a Sustainable Society through Hometown Advantage

Abstract

Cooperatives as a social enterprise through their interrelationship with the local community have a clear advantage for financial inclusion through rural development and creating opportunities for employment and income generation.

Purpose Of the study

1. To analyse the financial inclusion efforts of credit cooperatives in an Indian context.


2. To identify the contribution of credit cooperatives through diversified activities, by making use of the home town advantage


3. To analyse the government's involvement in diversified activities of credit cooperatives


4. To make a content analysis of the regulatory involvement in credit cooperatives to understand the involvement of the principle of concern for the community in the legislation.

Research Methodology

The necessary secondary data were taken from books, articles, reports, websites, various laws, reports, circulars and orders from the government. 

Primary data were collected from members and executive members of the Credit Cooperative in Kerala by employing a multistage Stratified proportionate random sampling and tools like the Relative Importance Index, One sample T-test were employed and a grounded model is also developed. 

Results Findings

Regulators are the facilitating or Interfering factor. Cooperatives in Kerala can be set as a model for diversified activities.  But, the interference by regulators is impairing the freedom of decision making which directly affect the functioning of cooperatives. Hence a proper balance has to be maintained.

Practical Implications and Conclusions

The relevance of financial inclusion and ways of imparting the same through credit cooperatives is illustrated. The contributions that can be made by the credit cooperative by making use of the home town advantages are also analysed. It also comes up with innovative ways and means through which the same can be implemented to contribute towards developing a resilient society.