Pradhan Mantri Jan Dhan Yojna and Financial Inclusivity: An Empirical Analysis

Abstract

A financial system which is inclusive is deemed a pre requisite for sustainable development and growth which encompasses all sections of the society. Financial inclusivity has been a top policy prerogative and several initiatives launched to ring in financial inclusion. From the nationalization of Banks in late 1960s till the very recent small payment banks and PMJDY, multiple initiatives have been introduced to ensure 100% inclusion. The present study has been conducted to know the progress made through the much-coveted PMJDY scheme of the government. Also, an attempt is made to know from the business correspondents, their experiences both pre- and post-implementation of PMJDY. The study is based on both primary and secondary data. While the secondary data has been collected from the website of PMJDY, primary data is collected from the business correspondents. The secondary data is analysed using CAGR, paired two sample t test is used to analyze the primary data. It has been found that there is a significant improvement in the number of households covered through PMJDY and there has been a significant improvement in usage of financial services as is reflected by the increase in the amount which is deposited in BSBDA accounts. Also, as per the experiences of business correspondents there is a significant improvement in the banking habits of newly included. The implication of the study is that it gives indications to the policy makers and the practitioners about the course of action to be taken to increase the usage of the financial services now that there has been a significant improvement in accessibility.