Abstract
Financial inclusion is considered as a key policy tool to attain SDG goals. Central Banks in developing countries often formulate specialized inclusive deposit products to enhance financial inclusion of vulnerable communities. Financial institutions are obligated to promote the inclusive deposit products. A crucial policy question arises whether those inclusive deposit products can ensure welfare for the vulnerable communities. This study examines the impact of one of those deposit products specially designed by the central bank of Bangladesh. Central Bank of Bangladesh formulated an inclusive deposit product called Ten-Taka account for working class group like farmers, day laborers, and low income people like rickshaw pullers. This study considers Rickshaw pullers as units of analysis as a vulnerable section of a society, who often remain financially excluded. The study examines the impact of Access to Ten-Taka Profit-Loss Sharing Account on income, consumption, saving, loan and leisure decision of Rickshaw Pullers. The deposit product is characterized by only ten taka as a minimum requirement of deposit and profit-loss sharing return type. The access to a specialized deposit product is self-selected and thus the impact analysis needs to address self-selection bias. This study applies Randomized Encouragement Design as an identification strategy. Offer of Assistance to open bank account acts as the instrumental variable and encouragement. The study will provide a policy guidance to ensure effectiveness the ten taka deposit product characterized by profit-loss sharing return type. Moreover, the study will examine the financial inclusion theories claiming that access to specialized deposit product can enhance welfare for a vulnerable community.