Effect of Mobile Banking on Financial Inclusion: A Study in the District of Darjeeling, India

Abstract

Financial inclusion ensures access to and use of financial services for an individual or a micro-enterprise. The problem of lack of access to the formal banking system is recognized as an important obstacle to financial inclusion that creates blockage not only to economic growth in general but poverty reduction in particular for any nation. In this modern era of technology, mobile banking seems to be the most innovative, feasible, and sustainable option to bring financially excluded people into the formal banking system, particularly in a country like India, where there are more mobile phones than people. The paper aims to analyse the effect of mobile banking on financial inclusion in the district of Darjeeling, West Bengal. The study is based on the primary data, collected through a structured questionnaire. The correlation test has been applied to analyse the data with the help of SPSS. The study finds that most mobile banking service users are satisfied and opined that mobile banking service assists in achieving financial inclusion in Darjeeling.