SAVING BEHAVIOR AND BANKING CHALLENGES FACED BY RURAL PEOPLE IN VIRUDHUNAGAR DISTRICT

Abstract

Savings habits are crucial for economic stability and financial security, particularly in rural areas. This study examines the saving behavior and banking challenges of rural populations in Tamil Nadu’s Virudhunagar District. Despite the increasing availability of banking services, many rural residents face socioeconomic barriers, low financial literacy, and inadequate banking infrastructure, limiting their ability to save. Key factors influencing saving behavior include income levels, employment opportunities, access to financial institutions, and cultural attitudes toward savings. The underutilization of banking services is further driven by limited awareness of digital banking, high transaction costs, and lack of trust in financial institutions. Additionally, inadequate banking infrastructure, such as a shortage of ATMs and bank branches, exacerbates these challenges. This study also explores government initiatives like Jan Dhan Yojana and microfinance programs aimed at enhancing financial inclusion. While these initiatives have made progress, gaps remain in ensuring financial empowerment for rural communities. The findings emphasize the need for improved financial education, better banking infrastructure, and innovative banking solutions tailored to rural needs. Strengthening financial literacy, expanding digital banking access, and providing saving incentives can encourage better saving habits and economic resilience, ultimately promoting sustainable financial growth in Virudhunagar District.