Abstract
A successful development is marked with the establishment of a stable and useful financial system for the entire population. Indian government implemented many initiatives since independence for financial inclusion and recently launched Pradhan Mantri Jan-Dhan Yojana (PMJDY) to overcome the loopholes of previous initiatives. PMJDY is major financial plan with the objective of covering all households in the country with banking facilities along with inbuilt insurance coverage. With this background, the study has been conducted and tries to find out the success rate of inclusion process in rural areas of Jaipur district. For the purpose of the study, both primary data and secondary data have been collected. Correlation (r) test is used to find out the relationship between the socio economic backgrounds and the financial inclusion process. Findings show that Income, financial information from various channels and awareness of PMJDY are influential factors leading to inclusion. Nearness to banks increases the likelihood of inclusion.
Highlights
Among economists, the general consensus is that financial development acts as a promoter in the overall economic growth and development
Jaipur district is relatively well developed in comparison to other district, if we found persistent financial exclusion in this district where financial inclusion is expected to be high, financial exclusion is more than likely to be prevalent elsewhere
The findings of this research are helpful in understanding the influence of variety of factors on the access to banking services of rural households
Summary
The general consensus is that financial development acts as a promoter in the overall economic growth and development. Over the last decade, India’s financial inclusion agenda has seen a strategic shift from an emphasis on credit to a more comprehensive approach toward financial services, opening bank accounts and offering basic financial products such as insurance. This shift has been partly driven by the need to achieve other public policy goals, such as replacing product subsidies with cash transfers, which requires beneficiaries to have bank accounts for advancing the transfers. The objective of PMJDY is to ensure ‘access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections, i.e., weaker sections and low income groups’. In this paper we will discuss about the theoretical soundness of PMJDY and evaluate it critically
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