A Comprehensive Reach of Financial Inclusion by ICT: An Investigation in Select Districts of Tamil Nadu

This study empirically investigates the role of Information and Communication Technology to achieve financial inclusion in economically most backward districts of Tamil Nadu, India, which comprises four districts namely Cuddalore, Nagapattinam, Tiruvannamalai and Villupuram. This study took technology based financial inclusion in banking sector such as mobile banking, internet banking, Automated Teller Machine, Financial Service Kiosk, National Electronic Funds Transfer, Real-time gross settlement systems and Immediate Payment Service to know its frequency of usage through multiple regression analysis. Further study was undergone to identify the factors affecting the access and reasons for hesitation towards access. It is found that Automated Teller Machine is frequently used by 48.9% of the respondents. Real-Time Gross Settlement and Immediate Payment Systems are found unused by much respondents. In case of hesitance, irrelevant banking products are the factor selected by 30% respondents (out of 103). Financial illiteracy and lack of frequent income are the major factors identified for not using technology. This study suggests the banks to expand its service by opening bank account with information and communication technology and bank account holders should come forward to know technology based financial inclusion to transform traditional financial system and speedy reach of financial inclusion in this decade.