Structural Equation Modeling to Study the Factors Influencing Usage of IT Based Banking Facilities by MSES in Sankarankoil Taluk

Abstract

amil Nadu accounts for the largest number of (15.07%) Micro, Small and Medium Enterprises (MSMEs) in the country with 6.89 lakhs registered MSMEs. Hence, MSMEs must be assured of organized credit from the Indian banking system, and it requires a medium to ensure the credit system which is found to be e-banking facility. A sample survey was conducted during Dec. 2013 to Jan. 2014, to ascertain the variables linked to e-banking practice of rural based MSEs in Sankarankoiltaluk, Tirunelveli district. The current study aims to find the causal relationship among the latent variables (factors) confirmed in confirmatory factor analysis, namely, ‘bank usage’ that constitutes measured variables of IT based banking facilities by the rural customers, namely, MSEs of study area through the structural model/path analysis of SEM.