Determinants of Usage and Extent of Utilization of India Post Financial Services in Rural Kerala

Abstract

India Post Financial Services provide secure and affordable financial solutions, including savings accounts, deposit schemes, money transfer services, and insurance products. These services promote financial inclusion by making banking and financial facilities accessible to people across urban and rural areas. India Post provides easily accessible financial services to rural households through its extensive postal network. The usage and extent of utilization of these financial services reflect the level of adoption and frequency with which rural residents avail themselves of the various financial products and services offered by India Post. Despite the wide availability of India Post financial services in rural Kerala, the level of usage and extent of utilization vary among rural residents due to several demographic and service-related factors. Hence, this study aimed to examine the determinants of usage and extent of utilization of India Post financial services in rural Kerala. The study adopted a descriptive research design, utilizing both primary and secondary data sources. A simple random sampling technique was employed to select a sample of 223 residents from selected rural areas of Kerala. The primary data were collected using a structured questionnaire designed to obtain information on the rural residents’ demographic profile, usage of India Post financial services and the extent of utilization of India Post financial services. The questionnaire consisted of closed-ended questions and five-point Likert scale statements. The collected data were systematically coded and converted into numerical form for statistical analysis, whereas analytical tools such as percentage analysis, mean, standard deviation, Chi-square test and multiple regression analysis were employed to analyse the data. In addition, null hypotheses were formulated to examine the relationship between utilization of India Post financial services and selected independent variables. This study justified that high level of utilization of India Post financial services is perceived by the rural residents who belong to male, 31–40 years age group, family monthly income of above Rs.40,000, using savings and deposit services and using services for 3–6 years.