Accessing Institutional Finance: A Demand Side Story for Rural India

Author(s) Name: Rajalaxmi Kamath, Arnab Mukherji & Maria Sandstrom
Journal Name : Economic & Political Weekly
Volume : Vol. 15, No. 3, PP 56-62, 2010, September 2010
Year of Publication : 2010
Abstract :Under the Reserve Bank of India's "financial inclusion" campaign, the provision of institutional finance has been progressing at differential rates across the country. However, when we pair administrative banking data on availability of bank branches in a state with the All India Debt and Investment Survey (2002-03) capturing both institutional and non-institutional borrowing by households, we find that states with the most access to institutional finance, or supply, are not necessarily the ones with the most demand for finance.