Financial Inclusion of Street Vendors in Ranchi: An Empirical Study of Determinants and Challenges

Abstract

Street vendors constitute one of the most visible yet financially excluded segments of India’s urban informal economy. Despite their significant contribution to urban livelihoods and local markets, their access to formal financial services remains constrained by institutional, procedural, and infrastructural barriers. This study investigates the determinants and challenges of financial inclusion among street vendors in Ranchi district, Jharkhand. Primary data were collected from 200 street vendors across major vending zones, and an Exploratory Factor Analysis (EFA) was undertaken to identify the underlying dimensions shaping their financial inclusion behaviour.

The findings reveal that financial inclusion among street vendors is influenced by a complex interplay of digital capability, cost and access-related frictions, product relevance, institutional trust, and community-driven behavioural cues. While digital payment usage has increased, barriers such as cumbersome documentation, inconsistent connectivity, low product fit, and limited financial awareness continue to restrict effective participation in the formal financial ecosystem. The study provides actionable insights for policymakers, financial institutions, urban local bodies, and digital service providers to strengthen the financial inclusion architecture for informal-sector workers. Enhancing digital literacy, simplifying procedures, improving infrastructure, and expanding tailored financial products emerge as critical pathways for inclusive and sustainable urban economic development.