A STUDY ON COOPERATIVE BANKS AND FINANCIAL INCLUSION STRENGTHENING RURAL ECONOMIES IN TAMIL NADU WITH REFERENCE TOTHIRUVALLUR DISTRICT
Keywords:
Cooperative Banks, Financial Inclusion, Rural Economy, Tamil Nadu, Thiruvallur District, Rural Credit, SHGs, Microfinance, Financial Accessibility, Rural Development, Banking Services, Inclusive Growth, Agricultural Finance.Abstract
Rural development is a fundamental pillar of India’s inclusive growth strategy, and financial inclusion serves as a crucial driver of that development. This study investigates the role of cooperative banks in promoting financial inclusion and strengthening rural economies in Tamil Nadu, with a focused empirical analysis in Thiruvallur district. Cooperative banks, due to their local presence and member-oriented structure, are well-positioned to serve underserved rural populations by offering accessible and affordable financial services.
The main objectives of the study are to: (1) examine the role of cooperative banks in promoting financial inclusion, (2) assess their accessibility and usage by rural households and small-scale farmers, (3) evaluate their contribution to rural credit, savings, and economic activity, (4) identify operational challenges, and (5) suggest measures for improvement.
The research employed a descriptive design using proportionate random sampling to survey 280 respondents across various rural blocks of Thiruvallur district. Data collection was conducted through structured questionnaires, and the results were analysed using statistical tools and comparative analysis.
The findings reveal that cooperative banks play a significant role in rural credit delivery and savings mobilization, and are generally more accessible and trusted by the rural poor compared to commercial banks. However, challenges such as outdated technology, insufficient financial literacy among members, and administrative inefficiencies hinder their full potential.
The study concludes that cooperative banks are indispensable to rural financial ecosystems, but their operations must be modernized and strengthened through better governance, digital integration, and financial education. These improvements are essential to amplify their impact on rural economic resilience and inclusive growth in Tamil Nadu.
