For verification of this paper, please visit on http://www.socialresearchfoundation.com/innovation.php#8

Present research paper discusses about the status of financial inclusion in Eastern Uttar Pradesh. For the purpose of analysing the status of financial inclusion in Eastern Uttar Pradesh ,this research paper discusses about district-wise and year-wise expansion of bank of commercial bank branches and regional rural bank, District-wise and year-wise amount deposited, loan distributed and percentage of loan on amount deposited by commercial bank. This paper deals with introduction, review of literature, research methodology, parameter of financial inclusion,status of financial inclusion in eastern uttar pradesh, main findings and suggestions

1. To analyse the status of financial inclusion. 2. To identify the top five and bottom five district on the basis of financial inclusion’s parameter in Eastern Uttar Pradesh.

Inclusive Growth as a strategy of economic development received attention owing to a rising concern that the advantages of economic growth have not been equitably shared. Growth is inclusive when it creates economic opportunities along with ensuring equal access to underprivileged section of the society. The inclusive growth may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and deprived section of the society. So measures of inclusive growth refers to both the pace and distribution of economic growth. The Commission on Growth and Development 2008 notes that inclusive growth is a concept that encompasses equity, equality of opportunity, and protection in market and employment transitions is an essential ingredient of any successful growth strategy. However, attempts to measure inclusive growth have remained limited and poverty, inequality and economic growth analyses have been done separately. Recent work indicates that there may not be a trade-off between equity and efficiency as suggested by Okun (1975) and “that it would be a big mistake to separate analyses of growth and income distribution”. Lanchovichina and Gable (2011) explain inclusive growth as about raising the pace of growth and enlarging the size of the economy by providing a level playing field for investment and increasing the opportunities for productive employment. In this light, inclusive growth has two main components, first is social inclusion and second is financial inclusion. Social inclusion is the positive steps for an organization can take to combat the risk of individuals or groups being excluded from mainstream society for reasons such as unemployment, low income, poor housing and family conflict. It is an important step taken to avoid marginalization of particular people in the society. The process of improving the terms for individuals or community to take part in society and improving the ability, opportunity and dignity of those disadvantaged on the basis of their identity to take part in the society (The World bank group).

Financial inclusion has been discussed and debated much in recent year with the main objective of providing banking service at an affordable cost to the poor and underprivileged sections of society. The policy makers have been focusing on financial inclusion in the state and Indian rural and semi-rural areas on three most important pressing needs, first is creating a platform for inculcating the habit to save money, second is providing formal credit access and third is plug gaps and leaks in public subsidies and welfare programs. RBI set up the Khan Commission in 2004 to observed the financial inclusion and the recommendations of the commission were incorporated into the mid- term review of the policy (2005-06). The commission urged banks to review their existing practices to align them with the objective of financial inclusion. RBI also exhorted the banks and emphasize the need to make available a basic banking “no frills account” either with “NIL” or very minimum balances as well as charges that would make such accounts accessible to vast sections of the population.

On the basis of above discussion, there is no doubt that financial inclusion is needed not for not only economic and social transformation but also equity with growth and social justice also. That why this is a latest burning issue for Eastern Uttar Pradesh economy.

In the research paper, financial inclusion has been measured on the basis of parameters of financial inclusion which include expansion of bank branches, amount deposited, loan distributed and percentage of loan on amount deposited. The time period for the study of financial inclusion in Uttar Pradesh has been taken from 1995 to 2018. We have collected the relevant secondary data from various authentic sources for the study of financial inclusion in Eastern Uttar Pradesh and collected data has been compiled for the purpose of study needs. The present study is mainly based on secondary data. The specific sources of the data used in the present study have been collected from Directorate of Economics and Statistics Government of Uttar Pradesh from 1995 to 2018.

Status of Financial Inclusion in Eastern Uttar Pradesh

To check the status of financial inclusion in Eastern Uttar Pradesh, we have included district level data. On the basis of parameters of financial inclusion district wise detailed study in Eastern Uttar Pradesh is as following:

Table No. 1: District-wise Total No. of Scheduled Commercial Bank Branches in Eastern Uttar Pradesh

District	1994-95	1999-00	2004-05	2009-10	2014-15	2017-18
Bahraich	63	46	51	79	97	125
Gonda	104	119	67	97	99	175
Basti	69	51	53	62	83	94
Sidhharth Nagar	46	46	45	48	58	80
Maharajganj	41	42	43	73	76	125
Gorakhpur	113	118	120	169	299	299
Deoria	50	53	53	66	102	125
Kushinagar	42	43	43	63	128	105
Santkabir Nagar	-	25	25	30	55	63
Balia	54	54	56	90	136	114
Azamgarh	103	105	116	136	201	291
Mau	121	42	43	55	93	140
Faizabad	88	61	55	77	126	134
Sultanpur	47	50	50	66	88	94
Jaunpur	82	98	91	110	175	213
Gazipur	73	74	77	102	168	179
Varanasi	151	132	148	191	289	339
Mirzapur	66	64	61	78	107	112
Sonbhadra	54	53	56	63	104	123
Allahabad	191	169	183	195	339	382
Pratapgarh	57	59	66	79	120	133
Chandauli	8	34	35	49	91	102
Bhadoi	40	39	37	43	82	85
Ambedkar Nagar	55	37	37	48	100	107
Kaushambi	-	28	34	38	59	104
Balrampur	-	39	39	43	51	69
Shravasti	-	21	15	23	29	33
Total	1718	1702	1699	2173	3355	3945

Source: Compiled from updes.nic.in/spatrika

-: Not Available

Figure no. 1

Figure no. 1 based on Table no. 1

Table no.1 and Figure no.1 both are illustrating year-wise and district-wise expansion of scheduled commercial bank branches in Eastern Uttar Pradesh. Expansion of bank branches in the district of Eastern Uttar Pradesh, Allahabad, Varanasi, Gorakhpur, Azamgarh and Jaunpur are found to have maximum expansion of scheduled commercial bank branches. Shravasti, Sant Kabir Nagar, Balrampur, Siddharth Nagar and Bhadoi are found to have less expansion of scheduled commercial bank branches in Eastern Uttar Pradesh.

Table No. 2: District-wise Total No. of Regional Rural Bank Branches in Eastern Uttar Pradesh

District	1994-95	1999-00	2004-05	2009-10	2014-15	2017-18
Bahraich	88	59	67	73	94	100
Gonda	76	105	47	55	55	102
Basti	67	39	40	45	59	61
Sidhharth Nagar	37	35	36	35	49	60
Maharajganj	37	37	37	47	53	64
Gorakhpur	60	60	60	70	90	90
Deoria	59	59	53	54	68	69
Kushinagar	54	53	53	54	70	76
Santkabir Nagar	-	29	29	29	51	51
Balia	75	85	85	118	94	85
Azamgarh	64	64	70	73	84	102
Mau	61	34	34	35	43	54
Faizabad	67	40	30	42	50	53
Sultanpur	93	93	94	94	73	79
Jaunpur	72	85	84	89	102	110
Gazipur	68	68	69	71	80	86
Varanasi	59	38	36	43	70	60
Mirzapur	32	32	35	38	56	56
Sonbhadra	10	10	11	14	24	24
Allahabad	92	67	72	73	112	113
Pratapgarh	71	72	73	76	92	96
Chandauli	12	30	30	30	43	47
Bhadoi	24	22	19	21	21	23
Ambedkar Nagar	38	39	38	38	49	50
Kaushambi	-	19	19	19	19	40
Balrampur	-	29	29	29	31	64
Shravasti	-	31	22	22	33	34
Total	1316	1334	1272	1387	1665	1849

Source: Compiled from updes.nic.in/spatrika

-: Not Available

Figure no. 2

Figure no. 2 based on Table no. 2

Figure no. 3

Figure no. 3 based on Table no. 1& 2

Table no. 2 and Figure no. 2 both are describing year-wise and district-wise expansion of regional rural bank branches in Eastern Uttar Pradesh. Expansion of bank branches in the district of Eastern Uttar Pradesh, Allahabad, Jaunpur, Azamgarh, Gonda and Behraich districts are found to have maximum expansion of regional rural bank branches. Bhadoi, Sonbhadra, Shravasti, Kaushambi and Chandauli districts are found to have less expansion of regional rural bank branches in Eastern Uttar Pradesh.

Table No. 3: District-wise Total Amount Deposited by Commercial Bank in Eastern Uttar Pradesh

Source: Compiled from updes.nic.in/spatrika

-: Not Available

Figure no. 4

Figure no. 4 based on Table no. 3

Table no. 3 and Figure no. 4 both are illustrating year-wise and district-wise amount deposited by scheduled commercial bank in Eastern Uttar Pradesh. Amount deposited by scheduled commercial bank in districts of Eastern Uttar Pradesh, Deoria, Allahabad, Jaunpur, Gorakhpur and Azamgarh are more amount deposited districts. Gazipur, Sultanpur, Basti, Shravasti and Kaushambi are less amount deposited districts in Eastern Uttar Pradesh.

Table No. 4: District-wise Total Loan Distributed by Commercial Bank in Eastern Uttar Pradesh

Source: Compiled from updes.nic.in/spatrika

-: Not Available

Figure no. 5

Figure no. 5 based on Table no. 4

Table no. 4 and Figure no. 5 both are depicting year-wise and district-wise loan distribution by scheduled commercial bank in Eastern Uttar Pradesh. Loan distribution by scheduled commercial bank in districts of Eastern Uttar Pradesh, Gonda, Jaunpur, Allahabad, Gorakhpur and Balia are more loan distributed districts. Gazipur, Basti, Sultanpur, Shravasti and Sant Kabir Nagar are less loan distributed districts in Eastern Uttar Pradesh.

Table No. 5: District-wise Percentage of Loan on Amount Deposited by Commercial Bank in Eastern Uttar Pradesh

District	1994-95	1999-00	2004-05	2009-10	2014-15	2017-18
Bahraich	34.09	38.26	46.58	53.08	65.77	65.97
Gonda	46.68	19.01	36.44	33.41	47.14	40.91
Basti	46.35	36.91	35.46	35.76	35	34.23
Sidhharth Nagar	41.69	30.28	38.13	43.28	35.04	30.84
Maharajganj	30.19	26.92	38.06	41.19	46.73	48.66
Gorakhpur	25.94	19.99	29.42	32.67	38.84	38.09
Deoria	19.66	22.13	24.25	26.81	27.37	26.58
Kushinagar	30.93	27.47	44.13	33.69	40.78	35.64
Santkabir Nagar	-	20.98	30.88	26.41	33.99	30.72
Balia	29.96	20.69	17.47	29.12	29.94	29.09
Azamgarh	22.28	13.07	19.54	20.62	22.33	17.11
Mau	16.79	11.88	22.51	21.39	25.74	23.14
Faizabad	29.23	23.73	37.59	40.47	44.66	31.61
Sultanpur	29.54	34.98	29.54	30.09	40.19	40.18
Jaunpur	20.59	17.96	21.93	19.64	27.66	40.27
Gazipur	23.43	18.31	24.28	22.98	29.04	22.83
Varanasi	28.45	23.78	30.4	36.14	40.08	30.23
Mirzapur	50.29	39.81	43.02	32.46	41.82	40.27
Sonbhadra	70.29	55.28	47.55	49.24	45.21	40.07
Allahabad	30.13	22.33	27.78	25.21	33.65	41.14
Pratapgarh	31.41	21.23	26	18.21	29.88	33.46
Chanauli	-	9.17	36.12	58.31	36.71	23.08
Bhadoi	84.21	61.57	48.68	42.57	42.52	38.42
Ambedkar Nagar	29.23	18.01	27.18	35.02	44.02	43.37
Kaushambi	41.33	31.69	28.53	26.69	35.48	35.19
Balrampur	-	25.52	34.48	35.23	47.68	44.59
Shravasti	-	31.56	51.36	42.48	54.33	52.32
Total	26.34	23.81	32.7	30.19	31.84	33.79

Source: Compiled from updes.nic.in/spatrika

-: Not Available

Figure no. 6

Figure no.6 based on Table no. 5

Table no. 5 and Figure no. 6 both are describing the year-wise and district-wise percentage of loan on amount deposited by scheduled commercial bank in Eastern Uttar Pradesh. Here, we found that vagary increase in district-wise percentage of loan on amount deposited by scheduled commercial bank in Eastern Uttar Pradesh. Percentage of loan on amount deposited by scheduled commercial bank in the districts of Eastern Uttar Pradesh, Behraich, Shravasti, Maharajganj, Balrampur and Ambedkar Nagar are more percentage of loans on amount deposited districts. Azamgarh, Gazipur, Mau, Chandauli and Deoria are less percentage of loans on amount deposited districts in Eastern Uttar Pradesh.

Table no. 6: Ratio of Per Bank Population in Eastern Uttar Pradesh

Census	Total Population	Total no. of Bank Branches	Ratio of Per Bank Population
2001	66610761	1939 (2004-05)	34353
2011	79888303	5042 (2014-15)	15845

Source: Compiled from updes.nic.in/spatrika &http://up.gov.in.upmap.aspx

Table no. 6 depicts the ratio of per bank population in Eastern Uttar Pradesh. Total population in Eastern Uttar Pradesh according to census 2001 and 2011 is 66610761 and 79888303 respectively. Total no. of bank branches is 1939 in the year 2004-05 and 5042 in the year 2014-15. We found that per bank population is 34353 in the census 2001 which decrease in census 2011 (15845). It is clear that ratio of per bank population is decreasing; this means per bank population load have been decreased due to expansion of bank branches in Eastern Uttar Pradesh.

There are some main conclusions related to district wise disparity on financial inclusion in Eastern Uttar Pradesh. I have mentioned the positions of top five and bottom five districts on the basis of measuring parameters of financial inclusion.

Top Five Districts of Eastern Uttar Pradesh on the Basis of Parameters of Financial Inclusion

Complied by author

Bottom Five Districts of Eastern Uttar Pradesh on the Basis of Parameters of Financial Inclusion

On the basis of above discussion we found some conclusions to year-wise and district-wise expansion of scheduled commercial bank branches, expansion of regional rural bank branches, amount deposited to scheduled commercial bank, loan distribution to scheduled commercial bank and percentage of loan on amount deposited to scheduled commercial bank in Eastern Uttar Pradesh. Allahabad district is found at first position in maximum expansion of scheduled commercial and regional rural bank branches. Deoria district is found at first position in maximum amounts deposited by scheduled commercial bank in all districts of Eastern Uttar Pradesh. Gonda district is found at first position in more amount of loan distribution by scheduled commercial bank in the all districts of Eastern Uttar Pradesh. Behraich district is found at first position in maximum percentage of loan on amount deposited by scheduled commercial bank in the all districts of Eastern Uttar Pradesh. Shravasti district is found at first position in minimum expansion of scheduled commercial bank branches and Bhadoi district in regional rural bank branches. Gazipur district is found at first position in minimum amounts deposited and loan distribution by scheduled commercial bank in all districts of Eastern Uttar Pradesh. Azamgarh district is found at first position in minimum percentage of loan on amount deposited by scheduled commercial bank in the all districts of Eastern Uttar Pradesh.

1. www.rbi.org 2. Hema Divya.K, “Study On Impact Of Financial Inclusion With Reference To Daily Wage Earners”, Journal of Business Management & Social Sciences Research, Volume 2, No.6, ISSN No. 2319-5614, June 2013. 3. up.gov.in 4. Statistical Diary of Uttar Pradesh 2014 and 2018. 5. Central Statistical Organisation Report 2017-18. 6. Government of India (2012-17), “Faster, Sustainable and More Inclusive Growth” Approach Paper to 12th Five Year Plan, Planning Commission, Government of India. 7. Government of India (2007-12), Planning Commission, “Towards Faster and More Inclusive Growth, Approach Paper to 11th Five Year Plan, Planning Commission, Government of India. 8. Asian Development Bank (2013) “Framework of Inclusive Growth: Key Indicators for Asia and the Pacific”. 9. NABARD annual report 2017. 10. updes.nic.in/spatrika