Empowering Rural Thoothukudi: The Role of Commercial Banks in Promoting Financial Inclusion for Rural Development

Abstract

Financial inclusion, a critical component of socio-economic development, remains a challenge in rural areas like Thoothukudi, Tamil Nadu, India. This research investigates the barriers and opportunities in achieving financial inclusion in Thoothukudi, focusing on the role of commercial banks. The study addresses key questions regarding obstacles to financial inclusion, historical engagement of commercial banks, required financial products, residents' perceptions, and best practices. Using a mixed-methods approach, including surveys and interviews, the research analyzes demographic and financial profiles of respondents, explores their opinions on financial requirements, and assesses the reliability and validity of collected data. The results highlight diverse financial needs, such as basic necessities, agriculture, education, health, livelihoods, traditional values, business aspirations, and future plans. The study suggests multifaceted solutions, including diversifying funding sources, promoting financial literacy, community collaboration, strategic planning, and policy advocacy. The findings contribute insights for policymakers, stakeholders, and the banking sector to enhance financial inclusion and rural development in Thoothukudi and similar regions.