A Study on Financial Inclusion and its Effectiveness on Direct Benefit Transfer Schemes

Abstract

India's progress toward financial inclusion has been amazing during the past ten years, and the Indian government has actively supported it through initiatives like the Digital India Movement and the Pradhan Mantri Jan Dhan Yojana. To build an inclusive society, reducing poverty and solving the difficulties of securing sustained income may become crucial. Information and communication technologies are gradually opening up access to the unbanked people and assisting in attracting them to the banking industry. Digital technologies are promoting usage and improving residents' quality of life. In this essay, we'll talk about the progress made in financial inclusion so far, what comes next, and how we may use digital technology to create a more inclusive society. In August 2014, the government launched a new program called the Pradhan Mantri Jan Dhan Yojana to hasten and digitalize financial inclusion in the nation. As a result, a total of 320215027 beneficiaries received contributions totaling Rs. 793711.06 Lakhs. Additionally, as of April 2018, 240921418 recipients had received Rupay cards. The current study examines the financial inclusion through Direct Benefit Transfer in India with regard to the major social security programs, including Pratyaksha Hastaantarit Laabh (PAHAL), Direct Benefit Transfer for LPG, the Mahatma Gandhi National Rural Employment Guarantee Act, the National Social Assistant Program, the Scholarship Program, the Public Distribution System, and others. The National Social Assistance Program (NSAP), the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and Pratyaksha Hastaantarit Laabh (PAHAL), or Direct Benefit Transfer for LPG, are among the primary social protection programs that are highlighted (DBTL). The different obstacles to building an inclusive society are listed in this research paper.