The Role of Urban Cooperative Banks in Creating Financial Inclusion and its Impact on Enhanced Development- An Evidence from Andhra Pradesh

Abstract

The financial system's role fortifies a country, enabling it to excel in a competitive global landscape. Financial inclusion is a crucial development metric for alleviating poverty and attaining financial objectives. It catalyses development, particularly in poor countries. This article examines the part of urban cooperative banks in bridging the gap in access to finance and enhancing financial literacy for affordable financing in urban settings. The study also investigates the degree to which UCB services contribute to social development in the areas of education, health, and economic status among the studied population. The quantitative cross-sectional research design was selected to investigate the influence of UCB services on financial inclusion and improved development. This present study comprising 72 questions over eight dimensions, advocates for a sample size of 720 from thirty-six operating urban cooperative banks with multiple branches throughout Andhra Pradesh, India, serving urban and semi-urban populations. The SEM results indicate a robust positive correlation among UCB services (Access, Usage, Availability, Acceptability, and Quality), with the exception of Affordability. The findings indicated that the characteristics of Financial Inclusion had a significant beneficial influence on Enhanced Development.