International Journal of Research & Development in

Technology and Management Science Kailash

Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

FINANCIAL INCLUSION ON DAILY WAGE EARNERS IN TEA

GARDEN OF ASSAM: CHALLENGES AND REMEDIAL MEASURES
by

Dr. Prasanta Sarmah | Associate Professor | Departmenty of Commerce | Mariani College |

Jorhat. Assam | prasantsarmah@gmail.com
&

Dr. Horen Goowalla | Associate Professor | Departmenty of Commerce | Mariani College |

Jorhat. Assam | gowalaharen121@yahoo.com

ABSTRACT

The term financial inclusion has gained importance since the early
2000s. So, financial inclusion is the concept related to financial services
for rural or low income group people or vulnerable group of people of the
society to improve their standard of living and to bring them closer to flow
of banking sector through financial education and with providing basic
banking facilities like saving, deposits, short term lending or credit
facilities. The study is undertaken in three selected tea gardens in Jorhat
District of Assam. The scope of data collection is restricted to only daily
wage earners located in tea garden areas. A research design is the
specification of methods and procedures for acquiring the needed
information. Design to be adopted here is descriptive as well as
exploratory research. It basically seeks to extract information about
financial inclusion from daily wage earners in the study areas. Attempts
have been made to examine the impact of financial inclusion on daily
wage earners in tea garden workers and to find out whether the financial
services were reaching the low income groups or not.

KEYWORDS: Gender, Marital Status, Working Organizations, Educational Qualification and

Number of Schemes etc.

I. INTRODUCTION

Financial Inclusion is the process of ensuring access to appropriate financial products and
services needed by all sections of the society in general and vulnerable groups such as weaker
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 International Journal of Research & Development in
Technology and Management Science Kailash
Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

sections and low income groups in particular at an affordable cost in a fair and transparent
manner by mainstream institutional players. The States like Assam and North-Eastern States
are under banked.

The term financial inclusion has gained importance since the early 2000s. So, financial
inclusion is the concept related to financial services for rural or low income group people or
vulnerable group of people of the society to improve their standard of living and to bring them
closer to flow of banking sector through financial education and with providing basic banking
facilities like saving, deposits, short term lending or credit facilities.

A great deal of effort has been made in recent times to envelop the vulnerable and weak section
of the society with financial inclusion, therefore, an attempt has been made to assess the ground
reality of financial inclusion of daily wage earners of tea garden of Assam

Tea is a labour intensive industry. The daily wage earner of tea industry is most weaker section
of the society and they are exposed to many social evils like illiteracy, unhygienic living
condition, low wages etc, to name a few and therefore, the present study shall try to focus its
attention on the aspest of Financial inclusion of this exploited strata of the society..

II. RESEARCH DESIGN AND METHODOLOGY

Objective: To examine the impact of financial inclusion on daily wage earners in tea
garden workers. To find out whether the financial services were reaching the low income
groups or not. To find the impact of financial inclusion on daily wage earners in the study
area.

Scope of the Study: The study is undertaken in three selected tea gardens in Jorhat District
of Assam.The scope of data collection is restricted to only daily wage earners located in tea
garden areas.

Research Design: A research design is the specification of methods and procedures for
acquiring the needed information. Design to be adopted here is descriptive as well as
exploratory research. It basically seeks to extract information about financial inclusion
from daily wage earners in the study areas.

Size of the sample: 200 respondents have selected for the purpose of the study.

Sampling: An integral component of research design is the sampling plan. Especially it

addresses three questions: who to survey (sample unit) how many to survey (sample size)
and how to select them (sampling procedure). Making the census study of the entire

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Page 74 of 78
 International Journal of Research & Development in
Technology and Management Science Kailash
Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

universe will be impossible on the account of limitations of time and money. Hence
sampling procedures representative data of the entire population.

Sampling method: Random sampling was used here because the study is not restricted to
one industry. Daily wage earners were work in almost all the industries.

Sampling Tool: Questionnaire was used as a tool for the collection of data, mainly
because it gives the chance for timely feedback from respondents. Moreover respondents
feel free to disclose all necessary detail while filling up a questionnaire.

III. DATA ANALYSIS AND INTERPRETATION:

An attempt has been made here to study the impact of financial inclusion of the daily wage
earner of tea industry with the important parameters like gender, marital status, educational
qualification etc.

Table: 1.1: Gender

Sl.No Factors No of Percentage
respondents
1 Male 150 75
2 Female 50 25
Total 200 100
Source: Field Study.

Analysis: From the above it is observed that 150 male daily wage earners and 50 female daily
wage earners were utilizing financial inclusion services.

Inference: From the analysis 75% of male respondents and 25 % of female respondents are
utilizing financial inclusion services.

Table: 1.2: Marital Status

Sl.No Factors No of respondents Percentage
1 Married 140 70
2 Unmarried 60 30
Total 200 100
Source: Field Study.

Analysis: From the above table, it has been seen that 140 married daily wage earners and 60
unmarried daily wage earners are utilizing financial inclusion services.

Inference: From the analysis it is seen that 70 percentage of married daily wage earners 30
percentage unmarried utilizing financial inclusion services when compared with unmarried
daily wage earners.
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 International Journal of Research & Development in
Technology and Management Science Kailash
Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

Table: 1.3: Working Organizations

Sl.No Factors No of Respondents Percentage
1 Private 30 15
2 Public 170 85
200 100
Source: Field Study.

Analysis: From the above table, 30 respondents are working in public sector organizations and
170 respondents are working in private sector organizations.

Inference: From the above analysis 85% of daily wage earners are working in public sector
organizations and only 15 % of daily wage earners are working in private sector organizations.

Table: 1.4: Educational Qualification

Sl. No Factors No of Percentage
Respondents
1 Illiterate 140 70
2 Up to V std 40 20
3 Up to Vi to X std 20 10
4 S.H and above Nil Nil
Total 200 100
Source: Field Study.

Analysis: From the above graph 140 respondents are illiterates,40 respondents are studied up
to 5th class, 20 respondents are studied 6th to 10th and remaining respondent is studied more
than intermediate.

Inference: From the analysis 70% are illiterates and 30% of the daily wage earners are
literates.

Table: 1.5: Number of Schemes that daily wage earners known

Sl. No No of Schemes No of Respondents Percentage
1 >2 140 70
2 3 to 5 40 20
3 6 to 8 20 10
4 <8 Nil Nil
5 Total 200 100
Source: Field Study.

From the above graph 140 respondents known less than or equal to two schemes, 40
respondents known 3 to 5 schemes, 20 respondents know 6 to 8 schemes and nobody known
more than 8 schemes in financial inclusion.

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 International Journal of Research & Development in
Technology and Management Science Kailash
Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

Inference: From the analysis 70 % of daily wage earners known about two schemes, 20 % of
respondents known about 3 to 5 schemes, 10 % of respondents know about 6 to 8 schemes and
no body of respondents know above 8 schemes in financial inclusion.

IV. MAJOR FINDINGS OF THE STUDY

75% of male respondents and 25 % of female respondents are utilizing financial inclusion
services.

70 percentage of married daily wage earners 30 percentage unmarried utilizing financial

inclusion services when compared with unmarried daily wage earners.

85% of daily wage earners are working in public sector organizations and only 15 % of
daily wage earners are working in private sector organizations.

70% are illiterates and 30% of the daily wage earners are literates.

90 % of daily wage earners did not have awareness about financial inclusion.

70 % of daily wage earners known about two schemes, 20 % of respondents known about
3 to 5 schemes, 10 % of respondents know about 6 to 8 schemes and no body of
respondents know above 8 schemes in financial inclusion.

V. SUGGESTIONS

Financial inclusion is a very useful tool for financial growth of daily wage earners.

Conduct awareness programmes in various industrial areas to increase the utilization of

inclusion services.

Smart card i.e. for financial inclusion service is very necessary for rapid growth and smart
card should have access in bank ATM.

For the daily wage earners services, local banks should provide there service at their door
step.

Banks should establish separate counters in the bank for financial inclusion services.

VI. CONCLUSION

It has been observed that financial inclusion has made inroad among the daily wage earners of
tea industry. The pace or speed of inclusion may not be a robust one but a humble beginning is
made which is bold, powerful and purposeful. The study also felt the need to educate the daily
wage earners and a great deal of publicity about different existing instruments of financial
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 International Journal of Research & Development in
Technology and Management Science Kailash
Volume - 21| Issue 5 | DECEMBER 2014 | ISBN - 1-63102-449-3
European Article Number [EAN] - 978-163-102-449-8
editor.ijrdtm@rtmonline.in | editor@ijrdtm.com | http://journal.rtmonline.in | http://www.ijrdtm.com

Paper Id: IJRDTM 053054

inclusion is to be undertaken by appropriate agencies. Since most of the tea gardens are located
in remote places and the distance to the nearest bank is one of the major hurdles to these
workers to reap the benefits of financial inclusion. Therefore, the bank should make sincere
and endeavor to open its outlet nearer to the tea gardens.

From the above study, it is concluded that there is more need to educate and create some new
instruments for daily wage earners and also make a part of financial inclusion.

VII. REFERENCES

1. Impact of SHGs on Financial Inclusion A Case Study in the District of Bankura.

Dr.Mnaiklal Adhikay, Supravat Bagli, Journal of Management and Information
Technology, Vol.2, No.1 (2010).

2. Role of Financial Institutions in Financial Mr. Joseph Massey, MD & CEO, Stock
Exchange, FICCI's Banking & Journal, Issue: 4, October-2010.

3. Taking Banking Services to the Common Man - Financial Inclusion. V. LEELADHAR.

4. CGAP Technology Programme (2009), Notes on Branchless Banking, Policy and

Regulation in Mexico.

5. Chakrabarthy K.C (2009), Financial Inclusion,RBI Initiatives at National seminar on

launching a National initiative for financial inclusion, DFS GoI.

6. Arunachalam .R.S (2008), Scoping Paper on Financial Inclusion, UNDP.

7. Ansari, S. A (2007), Microfinance in India Asian Economic Review.

8. V. Leeladhar, Taking Banking Services to the Common Man - Financial Inclusion, a.

Reserve Bank of India Bulletin, January 2006.

9. Financial Inclusion: Innovative Approaches. Mr. M V Nair, Chairman and Managing

Director, Union Bank of India.

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