ENHANCED BANKING SERVICES FOR UPLIFITNG THE STANDARD OF

LIVING OF RURAL PEOPLE IN KANCHIPURAM DISTRICT

1. NEED FOR THE STUDY

Poverty alleviation is one of the primary objectives of any planning in a national
economy. Therefore, it becomes imperative to formulate situation specific poverty
alleviation policies and programs for generation of a minimum level of income for rural
poor, which form the substantial percentage of national population in developing
societies. One initiative is micro credit and enhanced banking services for rural
population. The success of any banking services for rural areas hinges on its high
outreach and people friendly approach, the governmental and other institutional players.
The banking services can be successful, only if the client expectations are satisfied. It
become necessary to study the enhanced banking services for uplifting the standard of
living of rural people in Kanchipuram district

2. OBJECTIVES OF THE STUDY

Primary Objectives
To understand the need for banking services in rural areas of Kanchipuram
District and how they improve their standard of living.

Secondary Objectives
To create long term financial independence in poverty areas
To understand the impact of loans and welfare schemes provided for financial
help provided by bank
To promote wealth equality of rural populace
To study the financing patterns followed by banks in rendering services
To suggest suitable strategies to the bank

3. RESEARCH METHODOLOGY

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Type of Project
Marketing Research is defined as a function that links the consumer, customer, and the
public to the marketer through information- information used to identify and define
marketing opportunities and problems; to generate, refine, and evaluate marketing
actions; to monitor marketing performance; and to improve understanding of the
marketing process.

This type of research is tentative and it is qualitative in nature. Exploration is particularly

useful when researchers lack a clear idea of the problems. The approach used in the study
was both qualitative as well as quantitative as only theoretical aspects are not considered
but their practicality is also been observed. Exploratory research may develop hypothesis,
but it does not seek to test them. Exploratory research is characterized by its flexibility.

Research Design
Research Design is the conceptual structure within which research is conducted. It
constitutes the blueprint for collection, measurement, & analysis of the data. The design
used for carrying out this research is exploratory & experience based.
I intend to carry out primary and secondary research, carry out focus interviews and
group discussions which would help me to gather fresh data which can be analyzed with
the past data to seek the existing trends in the services offered by banks and the
satisfaction level of the rural people towards such schemes and interest rates etc. This
would include usage of questionnaire as a tool for gathering data.

Target Respondents
Total of 100 respondents would be interrogated from Kanchipuram District of Tamilnadu

Sampling Methods
Convenient sampling method is used to collect data through questionnaire

Data Processing

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The type of data collected comprises of primary data and secondary data.

Primary Data Primary data is the first and it is collected from women entrepreneurs in
Kanchipuram. The collection of data from the respondents is done through direct
interview from the rural areas as the respondents were from villages.

Secondary Data Secondary data for the study has been compiled from the internet
sources, magazines and newspapers which have been helpful in getting an insight of
present scenario.

Questionnaire Framing
Questionnaire is an effective primary data analysis tool. This study is has a well-
structured 2 dimension questionnaire which is expected to cover all the possible areas of
study. Part A of the questionnaire has demographic information of the whole respondents
participating in the survey. Part B of the questionnaire will be asked to general public. As
most respondents have limited literacy, the questionnaire will be translated in Tamil
Language at the time of survey.

Tool for Analysis

Simple percentage analysis

4. DATA COLLECTION
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5. DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
TABLE 1
TABLE SHOWING GENDER OF THE RESPONDENTS
Particulars
No of Respondents % Percentage

Male 43 54%

Female 37 46%

Total 80 100%

Inference:
54% of the respondents are male and 46% of the respondents are female

CHART 1
CHART SHOWING GENDER OF THE RESPONDENTS

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 TABLE 2
TABLE SHOWING AGE OF THE RESPONDENTS

Particulars No of Respondents % Percentage

20-30 23 29%

31-40 15 19%

41-50 19 24%

51-60 13 16%

Senior citizen 10 13%

Total 80 100%

Inference: 29% of the respondents are about 20-30yrs,19% of the respondents are about
31-40yrs,24% of the respondents are about 41-50yrs,16% of the respondents are at age of
51-60yrs and 13% of the respondents are Senior citizen

CHART 2
TABLE SHOWING AGE OF THE RESPONDENTS

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 TABLE 3
TABLE SHOWING MARITAL STATUS OF THE RESPONDENTS

Particulars
No of Respondents % Percentage

Single 38 48%

Married 42 53%

Total 80 100%

Inference:
48% of the respondents are single and 53% of the respondents are married

CHART 3
CHART SHOWING MARITAL STATUS OF THE RESPONDENTS

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 TABLE 4
TABLE SHOWING NUMBER OF PERSONS EARNING IN THE FAMILY

Particulars
No of Respondents % Percentage

1 26 33%

2 28 35%

3 16 20%

More than 3 10 13%

Total 80 100%

Inference: 33% of the respondents say that only one person earning in the family,35% of
the respondents say that 2 persons earning in the family,20% of the respondents say there
are 3 persons earning in the family and 13% of the respondents house more than 3

CHART 4
CHART SHOWING NUMBER OF PERSONS EARNING IN THE FAMILY

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 TABLE 5
TABLE SHWOING TYPE OF ACCOUNT THE RESPONDENTS HOLDING

Particulars
No of Respondents % Percentage

Savings 42 53%

Current 38 48%

Total 80 100%

Inference: 53% of the respondents holding savings account and 48% of the respondents
holding current account
CHART 5
CHART SHWOING TYPE OF ACCOUNT THE RESPONDENTS HOLDING

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 TABLE 6
REASON BEHIND CHOOSING THE BANK FOR HOLDING ACCOUNT

Particulars
No of Respondents % Percentage

Excellent service quality 20 25%

Using latest technology 15 19%

Memorable advertisements 12 15%

Reference from friends 18 23%

Others 15 19%

Total 80 100%

Inference: 25% of the respondents feel that bank provides excellent service quality to
hold account, 19% of the respondents feel latest technology, 15% of the respondents feel
memorable advertisements, 23% of the respondents feel reference from friends and 19%
of the respondents feel other options to hold account

CHART 6
REASON BEHIND CHOOSING THE BANK FOR HOLDING ACCOUNT

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 TABLE 7
TABLE SHOWING MODE OF FREQUENT TRANSACTIONS

Particulars
No of Respondents % Percentage

By Visiting Branch 19 24%

ATMs 20 25%

Phone Banking 20 25%

NET Banking 21 26%

Total 80 100%

Inference: 24% of the respondents says that they visit the branch frequently to do
transactions,25% of the respondents do ATM transactions,25% of the respondents use
phone banking and 26% of the respondents prefer net banking

CHART 7
CHART SHOWING MODE OF FREQUENT TRANSACTIONS

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 TABLE 8
TABLE SHOWING BANK IS CUSTOMER FRIENDLY

Particulars
No of Respondents % Percentage

Strongly Agree 15 19%

Agree 20 25%

Neutral 10 13%

Disagree 16 20%

Strongly Disagree 19 24%

Total 80 100%

Inference: 19% of the respondents strongly agree that the bank is customer friendly,25%
of the respondents agree that the bank is friendly,13% of the respondents are neutral, 20%
of the respondents are disagree about the statement and 24% of the respondents strongly
disagree about the statement

CHART 8
CHART SHOWING BANK IS CUSTOMER FRIENDLY

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 TABLE 9
TABLE SHOWING THE TIME TAKEN BY THE BANK TO SOLVE THE
PROBLEM

Particulars No of Respondents % Percentage

Highly Satisfied 13 16%

Satisfied 16 20%

Neither Satisfied nor Dissatisfied 19 24%

Dissatisfied 20 25%

Highly Dissatisfied 12 15%

Total 80 100%
Inference:16% of the respondents are highly satisfied with the response taken by the
bank,20% of the respondents are satisfied that the time taken by the bank to solve the
problem,24% of the respondents are neither satisfied nor dissatisfied,25% of the
respondents are dissatisfied,15% of the respondents are highly dissatisfied

CHART 9
CHART SHOWING THE TIME TAKEN BY THE BANK TO SOLVE THE
PROBLEM

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BANK EXECUTIVES

TABLE 10
STRATEGIES FOLLOWED TO ATTRACT THE CUSTOMERS ARE
EFFECTIVE

Particulars
No of Respondents % Percentage

Yes 12 60%

No 8 40%

Total 20 100%

Inference:60% of the respondents are satisfied about the strategies followed to attract the
customers and 40% of the respondents not satisfy about the strategies which are not
effective
CHART 10

STRATEGIES FOLLOWED TO ATTRACT THE CUSTOMERS ARE

EFFECTIVE

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 TABLE 11
TABLE SHOWING CUSTOMERS EXPECTATION FROM BANKS

Particulars No of Respondents % Percentage

Accuracy 7 35%

Access to electronic transactions 4 20%

User Friendly environment 5 25%

Enhanced services 4 20%

If other, please specify 0 0

Total 20 100%

Inference: 35% of the respondents expectation are accuracy,20% of the respondents

expect access to electronic transactions,25% of the respondents expect user friendly
environment,20% of them expect enhanced services and 0% of the respondents do not
expect any services

CHART 11
CHART SHOWING CUSTOMERS EXPECTATION FROM BANKS

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 TABLE 12
TABLE SHOWING BANK CONCENTRATION ON BRINGING NEW
CUSTOMERS RATHER THAN SATISFYING THE EXISTING ONES

Particulars No of Respondents % Percentage

Strongly Agree
0 0%
Agree
1 5%
Neutral
4 20%
Disagree
7 35%
Strongly Disagree
8 40%

Total 20 100%

Inference: 5% of the respondents agree that BANK is concentrating more on bringing

new customers rather than satisfying the existing customers, 20% of the respondents
neither agree or disagree this, 35% of them disagree this and the rest 40% of the
respondents strongly disagree this statement.

CHART 12
CHART SHOWING BANK CONCENTRATION ON BRINGING NEW
CUSTOMERS RATHER THAN SATISFYING THE EXISTING ONES

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 TABLE 13
STRATEGY MUST BE FOLLOWED CONTROL CUSTOMER EROSION FROM
BANK

Particulars No of Respondents % Percentage

Keep the bank in the easy reach of customers 5 25%
Updating new schemes 4 20%
Create effective campaigns 2 10%
Customer Friendly 2 10%
Queue Handling 4 20%
Time saving transactions 3 15%
If other, please specify 0 0%
Total 20 100%
Inference: 25% of the respondents say the strategy should be keep the bank in the easy
way to reach,20% of the respondents say updating new schemes,10% of the respondents
say create effective campaigns,10% of the respondents say customer friendly,20% of the
respondents feel queue handling must be followed,15% of the respondents feel time
saving transactions
CHART 13
STRATEGY MUST BE FOLLOWED CONTROL CUSTOMER EROSION FROM
BANK

CHI SQUARE ANALYSIS

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Chi-square between user friendly services of modern bank and satisfaction level of
customer towards query solving

To find the reliability of the collected data Chi-square test has to be conducted the
required hypothesis is the null hypothesis

CHI SQUARE ANALYSIS

H0 (Null hypothesis) = There is no dependency between user friendly services of

modern bank and satisfaction level of customer towards query solving

H1 (Alternate hypothesis) = There is dependency between user friendly services of

modern bank and satisfaction level of customer towards query solving

OBSERVED FREQUENCY:
Service/Query solving SA A N D SD Total

HS 4 2 1 3 3 13
S 6 4 3 2 1 16
N 2 7 1 1 8 19
DS 1 6 4 5 4 20
HDS 2 1 1 5 3 12
TOTAL 15 20 10 16 19 80

EXPECTED FREQUENCY:

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Service/Query solving SA A N D SD Total
HS 2.44 3.25 1.63 2.60 3.09 13
S 3.00 4.00 2.00 3.20 3.80 16
N 3.56 4.75 2.38 3.80 4.51 19
DS 3.75 5.00 2.50 4.00 4.75 20
HDS 2.25 3.00 1.50 2.40 2.85 12
TOTAL 15 20 10 16 19 80

CALCULATION:
O E O-E (O-E)2 (O-E)2/ E

4 2.44 1.56 2.43 1.00

2 3.25 -1.25 1.56 0.48
1 1.63 -0.63 0.40 0.24
3 2.6 0.40 0.16 0.06
3 3.09 -0.09 0.01 0.00
6 3 3.00 9.00 3.00
4 4 0.00 0.00 0.00
3 2 1.00 1.00 0.50
2 3.2 -1.20 1.44 0.45
1 3.8 -2.80 7.84 2.06
2 3.56 -1.56 2.43 0.68
7 4.75 2.25 5.06 1.07
1 2.38 -1.38 1.90 0.80
1 3.8 -2.80 7.84 2.06
8 4.51 3.49 12.18 2.70
1 3.75 -2.75 7.56 2.02
6 5 1.00 1.00 0.20
4 2.5 1.50 2.25 0.90
5 4 1.00 1.00 0.25
4 4.75 -0.75 0.56 0.12
2 2.25 -0.25 0.06 0.03
1 3 -2.00 4.00 1.33
1 1.5 -0.50 0.25 0.17
5 2.4 2.60 6.76 2.82
3 2.85 0.15 0.02 0.01
22.95

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FORMULA:
CHI SQUARE = [(O-E) 2 / E]
O Observed frequency
E Expected frequency
(O E) = Difference between observed frequency and expected frequency.
(O E) =Square of the difference

[(O-E) 2 / E] = 22.95
Degree of freedom = (R-1) (C-1)
= (5-1) (5-1)
= 16
Calculated value = 22.95

At 5% level of significance the table value is 26.296

Table value >calculated value

H0 is accepted

Inference:
Hence there is no dependency between user friendly services of modern bank and
satisfaction level of customer towards query solving
CHI SQUARE ANALYSIS - II
Chi-square between Service to rural customers Vs Announcement of Amendments
To find the reliability of the collected data Chi-square test has to be conducted the
required hypothesis is the null hypothesis
OBSERVED FREQUENCY:
Service/Amendments Yes No Total
Advertisement 5 0 5
Sending notice through mail 4 0 4
Through E-Mail 3 1 4
Sticking bills in branches 3 0 3

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Others 4 0 4
TOTAL 19 1 20

EXPECTED FREQUENCY:
Service/Amendments Yes No Total
Advertisement 4.75 0.25 5
Sending notice through mail 4
3.8 0.2
Through E-Mail 4
3.8 0.2
Sticking bills in branches 2.85 0.15 3
Others 3.8 0.2 4
TOTAL 19 1 20

FORMULA:
CHI SQUARE = [(O-E) 2 / E]
O Observed frequency
E Expected frequency
(O E) = Difference between observed frequency and expected frequency.
(O E) =Square of the difference

CALCULATION:
O E O-E (O-E)2 (O-E)2/ E
5 4.75 0.25 0.06 0.01
0 0.25 -0.25 0.06 0.25
4 3.8 0.2 0.04 0.01
0 0.2 -0.2 0.04 0.20
3 3.8 -0.8 0.64 0.17
1 0.2 0.8 0.64 3.20
3 2.85 0.15 0.02 0.01
0 0.15 -0.15 0.02 0.15
4 3.8 0.2 0.04 0.01
0 0.2 -0.2 0.04 0.20
2
[(O-E) / E] 4.21

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Degree of freedom = (R-1) (C-1)
= (5-1) (2-1)
= 4
Calculated value = 4.21
At 5% level of significance the table value is 9.488
Table value >calculated value

H0 is accepted

Inference:
Hence there is no dependency between the better services to rural customers and
announcement of amendments

6. WORK TO BE DONE:
Findings, Suggestions & Conclusion, Final Draft

REFERENCES
1. Dileep & Kesava Rao, 2013, A Study on Indian Rural Banking Industry-Issues
and Challenges, June 2013, Volume No: 2 Issue: 4
2. Chavan and Pallavi have examined the growth and regional distribution of rural
banking over the period 1975-2002, (2004)
3. Vyas committee, expert committee on rural credit, 2004
4. Pal and Sura, Efficacy of Regional Rural Banks in India: A Conventional
Analysis. The Journal of Indian Management and Strategy, Vol-11(4), Oct. -
Dec.2006, pp. 4-12.
5. Chidambaram, progress of RRBs in India, 2007

21
 6. Hemlata & Poonamsing, the research paper Financial inclusion through Regional
Rural Banks2009
7. Ibrahim, M. Performance Evaluation of Regional Rural Banks in India
International Business Research Vol. 3, No. 4; October 2010, Published by
Canadian Center of Science and Education 203.
8. Makandar, N.M. Profitability and Productivity Analysis of RRBs in India 2010
9. Ishwar, P. A financial performance analysis of regional rural banks: Pre and post
transformation. International Journal of Economics Research, 2(1), 142-151,
2011.
10. Soni, Anil Kumar and Kapre, Abhay. Performance Evaluation of Regional Rural
Banks in India, volume no. 1, Issue no. 11, Abhinav, National Monthly Referred
journal of Research in Commerce & Management, 2013
11. Bhatia, Aparna and Megha, Performance evaluation of regional rural banks
(RRBS) in India during pre and post amalgamation period Publication-
Abhigyan, January1, 2013.
12. Bhatt, K.A. Profitability Analysis of Regional Rural Banks in India: with Special
Reference to Western Region, International Journal of Research In Computer
Application & Management, Volume No. 3 (2013), Issue No. 08 (August)
13. Kanika & Nency, Financial Performance of Regional Rural Banks in India,
International Journal of Management & Information Technology,Vol.4, No.2,
2013
14. A. Steeven Raj, Merger and Amalgamation of RRBs, p.126,2009

COPY OF QUESTIONNAIRE
Customers
1. Name ..

2. Gender
Male
Female

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3. Age
20-30
31-40
41-50
51-60
Senior citizen

4. Contact Number

5. Marital status
Single
Married

6. What is the number of earning members in the family?

1
2
3
More than 3

7. Type of Account you hold

Savings
Current

8. Reason behind choosing the bank for holding your account?

Excellent service quality
Using latest technology
Memorable advertisements

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 Reference from friends
Others

9. Transaction you made frequently is

By Visiting Branch
ATMs
Phone Banking
NET Banking

10. Frequency of your visit to the bank

Daily
Weekly
Fortnight
Monthly

11. BANK is customer friendly

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

12. Rural customers are getting the same quality of services that of urban
customers.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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13. Are you satisfied with the response time taken by BANK to solve customer query
Highly Satisfied
Satisfied
Neither Satisfied nor Dissatisfied
Dissatisfied
Highly Dissatisfied

14. Comments on the bank and their operations ..

Bank Executives

15. Do you feel that the strategies followed to attract the customers are effective?
Yes
No

16. What do the customers expect from a bank?

Accuracy
Access to electronic transactions
User Friendly environment
Enhanced services
If other, please specify

17. BANK concentrates on bringing new customers rather than satisfying the
existing ones.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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18. Are the rural customers are well served as that of the urban customers?
Yes
No

19. How do BANK announce its customers the new amendments introduced?
Advertisement in Newspaper/Media
Sending notice to the customers directly through mail
Through E-Mail
Sticking bills in the respective branches
Others, please specify ..

20. What strategy must be followed to control customer erosion from banks?
Keep the bank in the easy reach of customers
Updating new schemes
Create effective campaigns
Customer Friendly
Queue Handling
Time saving transactions
If other, please specify

21. Comments, if any ..

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