India Post Payments Bank and Financial Inclusion in Rural Karnataka: A Demographic Study of Belagavi District of Karnataka

Abstract

Financial inclusion is a key component of inclusive economic development in India, particularly in rural and semi-urban regions where access to formal banking remains limited. India Post Payments Bank (IPPB) was established with the objective of extending basic banking services by utilizing the extensive postal network across the country. The present study examines the role of India Post Payments Bank in promoting financial inclusion in the rural areas of Belagavi District of Karnataka, with special emphasis on demographic factors influencing service usage.

The study is based on primary data collected through a structured questionnaire from 200 IPPB customers. Descriptive analysis and chi-square tests were applied to assess the relationship between demographic variables such as gender, age, and educational qualification and selected dimensions of IPPB usage, including frequency of use, service preference, satisfaction level, and perceived difficulty in accessing digital services. The analysis reveals that demographic factors significantly influence the frequency of usage of IPPB services, while variations in satisfaction and service preference are comparatively limited.

The findings indicate that India Post Payments Bank has contributed positively to improving access to banking services in rural areas. However, challenges related to digital literacy and regular usage remain, particularly among older and less-educated users. The study suggests that focused awareness programmes and user-oriented support mechanisms can further strengthen IPPB’s role in advancing financial inclusion in rural Karnataka.