Financial Inequality Among Tribal and Non-Tribal Communities in Jammu and Kashmir, India

Abstract

The study aims to investigate how demographic characteristics influence the level of financial inclusion and to explore the relationship between financial inclusion and economic inequality in the tribal community in Jammu and Kashmir. The study measured demographic attributes such as gender, age, marital status, income, occupation, and education. Primary data was collected from the top four tribal districts in the region using a well-structured questionnaire. The logit model was used to test the hypotheses. The findings from the logistic regression analysis indicate that demographic characteristics significantly contribute to financial inclusion. And the results demonstrate that financial inclusion has effects on economic inequality especially for tribal populations. The study contributes to the development of financial inclusion in Jammu and Kashmir.  The implications of this study are significant for various stakeholders, including regional financial institutions, the central government, and the local government in Jammu and Kashmir.Financial policymakers should take into account the demographic characteristics of the tribal population when designing strategies to reduce financial disparities. The large unbanked population in tribal areas presents an opportunity for banks to access new markets. Therefore, it is recommended that financial policies be developed to promote financial inclusion, and banks should actively reach out to low-income households in tribal regions. This not only fulfills their social responsibility but also taps into a potential market. Overall, this study provides insights into the factors influencing financial inclusion among the tribal community in Jammu and Kashmir and highlights the importance of addressing financial disparities based on demographic characteristics. The findings have practical implications for policymakers and financial institutions aiming to promote inclusive growth and reduce economic inequality in the region.