Effectiveness of Financial Inclusion through PMJDY Scheme: A Study of the PMJDY Beneficiaries in Tamil Nadu

Abstract

The study explored whether various banking dimensions, viz. savings and borrowings, literacy and promotions, bank facilities and other bank services, contributed to the PMJDY beneficiaries' satisfaction in the Coimbatore region. Moreover, the study examined whether the satisfaction of the beneficiaries obtained through banking dimensions led to the frequent usage of bank accounts under the PMJDY. The data were collected from 380 beneficiaries of PMJDY from 12 administrative blocks in the Coimbatore district of Tamil Nadu, the Southern part of India. Factor analysis and Structural Equation Modeling (SEM) were used for the analysis. The results showed that the banking dimensions, viz. savings and borrowings and literacy and promotions, had positively influenced the beneficiaries' satisfaction. There was a linkage between the beneficiaries' satisfaction with frequent bank accounts under the PMJDY in rural areas of the Coimbatore region. It was found that an enriched banking service through politeness and benevolence of bank employees would enhance satisfaction, which helped the bank to acquire and retain existing beneficiaries for a thriving business environment.