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Drivers of Credit Penetration in Eastern India

Rajesh, Raj and Das, Anwesha (2019): Drivers of Credit Penetration in Eastern India. Published in: RBI Bulletin (11 October 2019): pp. 113-122.

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Abstract

This article highlights that the eastern region of India continues to lag behind other regions in harnessing the potential of bank credit as an instrument to promote growth and development, notwithstanding concerted policy efforts to further financial inclusion in the region. While enhancing access to credit remains critical to strengthen credit penetration in the region, empirical findings suggest that factors influencing demand for credit – per capita income, level of industrial activity and availability of infrastructure such as road network and power supply – also matter.

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