Assessment of the Quality of Banking Services Perceived by Rural Customers

Abstract

The role played by banks in the economy of a country is of great importance. Growth of banking industry is directly related to economic growth of the country. New technologies are being introduced to increase quality of banking services. Present study was conducted in Dantiwada taluka of Banaskantha district of Gujarat and aimed at assessing perceived service quality of banking services by rural customers. A representative sample of 300 rural customers was selected randomly from six villages. Personal and socio-economic characteristics were studied as independent variables, whereas, quality of banking services as dependent variables. An interview schedule was formed which comprised questions related to background information, personal and socio economic variables and type and extent of services utilized by rural customers along with a teacher made scale to measure the service quality of banking services perceived by rural customers. Data were collected by personal interview technique. Descriptive type statistical tools, correlation and ANOVA were used for data analysis and Cronbach’s alpha test was applied to check the reliability of scale. All the dimensions of scale were found highly reliable. Assurance dimensions of service quality was perceived at the highest rank with 45.20 score by customers followed empathy, security and responsiveness. The reliability dimension was perceived at the lowest rank with 29.28 score.