Achieving the Sustainable Development Goals: The Role of Financial Inclusion (A Case Study of Selected Villages in Vijayapura Taluka of Karnataka)

Vijayapura remains one of the most economically disadvantaged Talukas in Karnataka, as inhabitants of numerous villages endure a dearth of fundamental amenities, including potable water, sanitation facilities, sewerage systems, and transportation. Financial inclusion in many villages also presents a formidable challenge. Banks and community-based models have been unable to work miracles in numerous villages within Vijayapura Taluka. Microfinance institutions, banks, and government officials have failed to incorporate the impoverished population of many villages in Vijayapura Taluka into the banking system, as was initially anticipated. Recently, financial inclusion has garnered attention from both academics and policymakers. The Government of India has recognized that financial inclusion is an essential tool for promoting inclusive growth and sustainable poverty reduction. Consequently, the Government of India has implemented various schemes to promote financial inclusion among the poor. Bank Mitras and non-governmental organizations (NGOs) are diligently working to reach the unbanked population. These institutions are also conducting awareness programs to educate the villagers about financial inclusion. Despite the rapid and diversified growth in the financial sector over the past two years, access to financial services remains limited in many villages within Vijayapura Taluka. In light of these circumstances, a study was conducted to ascertain the level of financial inclusion among the villagers of Vijayapura Taluka, as well as to examine the villagers' awareness offinancial inclusion and the financial products and services offered by banks. Four villages in Vijayapura Taluk, namely Ainapur, Atalatti, Gonasagi, and Jumnal, were selected for the study, with 50 respondents randomly chosen from each village. Face-to-face interviews were conducted to gather information from the participants. The data was analyzed using the percentage method. The study revealed that only 23 percent of the surveyed population was aware of the concept of financial inclusion, the benefits it offers, and the services and products provided through financial inclusion. The researchers suggest that awareness campaigns should be tied to government promotional schemes and health check-up camps. Additionally, customized financial products that cater to the specific needs of the villagers should be introduced. It is also recommended that the financial inclusion program be linked to food safety net programs such as food for work, cash transfers, and food subsidies, which are expected to elicit a positive response. The lack of adequate financial infrastructure is seen as a major obstacle to implementing the financial inclusion program in these villages. As mobile technology is expected to play a significant role in financial inclusion, banks should explore this avenue to reach the villagers. Banks, in collaboration with NGOs, should strive to expand access to banking services for the villagers. If the aforementioned suggestions are implemented in earnest, it is anticipated that the village economy will benefit in terms of poverty alleviation, the prevention of migration, the development of human resources, and the growth of trade and commerce. Financial inclusion is also expected to benefit the villagers by fostering a propensity for savings, which in turn enables them to better manage unforeseen circumstances and economic shocks, among other things.