Pradhan Mantri Jan Dhan Yojana Research Articles

Assessing Financial Inclusion Across Indian States and Union Territories

Financial inclusion is essential for the effective channelisation of money, allowing individuals to access financial products and services that enhance their financial well-being and contribute to the economic growth of a nation. Governments worldwide are recognising the importance of financial inclusion and are taking initiatives to enhance it. In India, the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014 stands as a significant effort by the government to boost financial inclusion. This study is an attempt to assess financial inclusion across Indian states and union territories, focusing on three key dimensions: automated teller machines (ATM) penetration, insurance penetration and mutual fund penetration. This study is based entirely on secondary data, sourced from the annual reports of the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Association of Mutual Funds in India (AMFI) and Unique Identification Authority of India (UIAI). The findings of this study provide valuable insights into the current state of financial inclusion in India and will contribute to effective policy formation aimed at enhancing financial inclusion across Indian states and union territories.

Bridging India's Financial Divide: The Power of Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are transforming India's financial sector, enhancing decision-making, risk assessment, and personalized services. They extend financial services to underserved populations through scalable solutions like digital lending and mobile banking, fostering financial inclusion and bridging urban-rural gaps. Notable progress has been made through initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which opened over 53 crore accounts by August 2024. However, challenges such as low literacy rates, inadequate digital infrastructure, and a large informal economy persist. AI and ML address financial inclusion gaps by automating KYC processes and improving onboarding through facial recognition and identity verification. Initiatives like Aadhaar provide digital identities, enhancing access to banking. ML algorithms expand financial access by analyzing alternative data for credit scoring. Companies like Lenddo and Tala leverage ML for loans, and AI revolutionizes fraud detection by analyzing transaction data in real-time. AI integration with digital payment platforms like UPI has transformed India's financial ecosystem, processing over 15 billion transactions monthly by August 2024 (NPCI). AI-driven micro-lending platforms like Capital Float and Aye Finance address a $380 billion credit gap (BCG) by assessing creditworthiness using alternative data. AI-driven chatbots and financial products tailored to rural customers improve financial literacy and services. In agricultural finance, AI introduces lending models and enhances crop insurance through satellite data and weather patterns. Programs like PMFBY and companies like Skymet use AI for faster claims processing. AI-driven solutions in RegTech simplify compliance and improve fraud detection. Fintech collaborations and government initiatives like IndiaStack, Aadhaar, and DigiLocker promote financial inclusion. Overcoming barriers like infrastructure challenges, data privacy concerns, and AI bias is essential for leveraging AI to provide equitable financial services in India. The constructive interaction between AI and blockchain further enhances financial inclusion, creating a secure, transparent ecosystem that drives economic growth and social well-being.

Role of District Central Cooperative Banks in Financial Inclusion: A Study on Two Selected Districts of West Bengal

Financial inclusion provides the legitimate provisions of basic banking services with adequate financial securities to the unbanked population at a reasonable cost. Since the early decade of the 20th century, the cooperative system has been engaged to percolate financial inclusion in various strata of our society. Several initiatives regarding financial inclusion have been implemented in the post-independence period; however, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) 2014 has been considered as one of the most fruitful and effective initiatives by the Government of India for opening no-frill bank accounts with zero balance facilities for financially excluded people in our country, and the cooperative banks have been playing a vital role in the process of implementing the said Yojana. The present study, based on Hooghly District Central Cooperative Bank (HDCCB) and Burdwan Central Cooperative Bank (BCCB) of West Bengal, has comprehended to investigate the role of the DCCBs in the process of financial inclusion with respect to a number of financial operations and annual changes of savings accounts over the second decade of the 21st century. The study has identified statistically significant segments of the financial operations. Those segments are consequences of several fluctuations in financial operations due to the changes in banking policy, implementation of PMJDY, demonetisation, loss of agriculture production, adverse effects of COVID-19 and also the national economic downturn. Finally, it has been observed that the implementation of PMJDY significantly gave rise to the business of the HDCCB and also acted as a threshold point of financial inclusion than its counterpart in the Burdwan district of West Bengal.

A CONCEPTUAL STUDY ON PRADHAN MANTRI KISAN MAANDHAN YOJANA SCHEME

It is the duty of the governments to take care of under-privileged people like small farmers, labors, street beggars etc. the present central government has under taken its promising steps for the development of these people through certain social welfare schemes such as Pradhan Mantri Jan Dhan Yojana, Pradhaman Mantri Shram Yogic Scheme, Pradhan Mantri Kisan Maandhan Yojana (PMKMY) etc. The central government’s PMKMY aims to provide social security to small and marginal farmers who have land less than two hectares. Under this scheme, the farmers can voluntarily contribute monthly premium from the age of 18 to 60 years. The premium is automatically calculated on the basis of age of the farmer ranging from Rs. 55 to Rs. 200. After attaining the age of 60 years, the scheme will be automatically matured, the subscriber is eligible to get minimum of Rs. 3,000 per month. It is a scheme sponsored by the central government through Life Insurance Corporation of India. If the subscriber is dead before his 60 years, his wife is eligible to continue the scheme. She is also eligible to get 50 percent of the monthly pension up to her life time. So, in this way it is helping out marginal farmers all over the India. There are around 8,56, 62,473 farmers were registered as on the date of 30/06/2023. Uttar Pradesh tops and Goa is the least in the registration to the scheme. Common Service Centers plays a pivotal role in the registration of PMKMY. The present study reveals that the Pradhan Mantri Kisan Maandhan Yojana is a concern taken by the central government. Since there is 50:50 contribution, it is a good scheme to the small and marginal farmers.

Empowering Financial Inclusion: The Crucial Role of Public Sector Banks in Implementing Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Abstract: The role of public sector banks (PSBs) in advancing the Pradhan Mantri Jan Dhan Yojana (PMJDY) is critical to achieving financial inclusion in India. PSBs play a pivotal role in ensuring the success of PMJDY by facilitating universal access to banking services, empowering individuals with financial knowledge, providing credit and insurance services, promoting digital financial transactions, and contributing to the overall economic development and well-being of marginalized populations. Their proactive involvement and strategic interventions are essential in building a more inclusive and resilient financial ecosystem in India. This paper examines the multifaceted contributions of PSBs towards PMJDY, including account opening initiatives, integration with Direct Benefit Transfer (DBT) schemes, financial literacy programs, promotion of microinsurance and credit facilities, encouragement of digital payments, and robust monitoring and reporting mechanisms

A Study on the Status of Present Financial Inclusion Policy in the Districts of the State of West Bengal, India

Introduction: The convergence of financially excluded population towards mainstream formal financial institutions through proper accessibility, affordability and usage of services is crucial, to eradicate the dependence on informal money lenders, and to help the vulnerable and poor people to come out of the vicious debt cycle. As India aims to achieve inclusive growth, it has worked upon removing barriers from the path of gaining complete ‘Financial Inclusion (FI)’ through the policy called, Pradhan Mantri Jan Dhan Yojana (PMJDY). This has helped in translating Jan Dhan (wealth of people) to Jan Suraksha (security of people) through insurance and pension schemes, with the objective of building a global social security mechanism for every citizen. Objective: To analyse the status of the FI scheme (PMJDY) in the 23 districts of the state of West Bengal. Research Methodology: This research work will evaluate the effects of the current FI schemes, on the lives of the citizens of the state of West Bengal, which has 23 districts in total. To investigate about the inclusiveness in the financial system of those 23 districts, District FI Index (FII) has been developed, by considering some indicators for sub-indices as well as for composite index, that are clubbed under three dimensions, namely, accessibility, availability and usage of bank offerings. Earlier literature focused on savings and deposit accounts as a variable to compute FI whereas this study bridges the gap and considers only PMJDY scheme-based accounts to evaluate the present status of the scheme in the state. Findings and Conclusion: It is observed that Kolkata has secured the highest place in FII whereas other districts have shown relatively low FI. The state still has a long distance to travel in terms of achieving a complete FI but it has the capability of travelling at a faster rate due to well-developed banking infrastructure. Thus, to make the FI scheme effective, a developed and accessible banking structure is a pre-requisite. The success of this scheme in bringing the deprived and vulnerable section into the fold will not only increase savings and investment but also contribute to strengthening the human capital of the country.

Awareness of Financial Inclusion: An Empirical Study in Tiruttani Taluk, Thiruvallur District, Tamil Nadu.

The Indian government consistently makes efforts to include rural people in the organized financial system. This initiative not only boosts the Indian economy by encouragement of savings habit, but also facilitates rural development through access to banking facilities, services like gas subsidies etc. The term “financial inclusion” may vary under different ruling parties, but the primary objective remains consistent: to uplift the bottom of the financial market pyramid. The current state of affairs indicates that the present government has achieved some success by opening approximately 12.54 crore new bank accounts (as of January 2015) and accumulating deposits of over Rs. 5000 crore (up to November 2014) through the Pradhan Mantri Jan Dhan Yojana (PMJDY), a new form of financial inclusion. However, it is evident that a significant portion of the rural market remains untapped and under-explored. Therefore, this paper aims to explore the awareness of financial inclusion schemes among rural customers in Tiruvallur District, Tamil Nadu. The study seeks to understand how effectively these initiatives are reaching the intended beneficiaries and identify areas for improvement. By enhancing awareness and accessibility, we can further empower rural communities and promote inclusive economic growth.

Socioeconomic and demographic determinants of financial inclusion in South Asia: Integrated policy for targeted groups of population

This paper aims to analyze the individual’s socioeconomic and demographic determinants of financial inclusion and its barriers among for South Asian countries in the lens of existing financial inclusion policy, using World Bank Global Findex database for the period 2011, 2014, 2017, and 2021. We use the Probit regression model to explore the main objective of this study. In addition, we also analyze the trend, pattern, and barriers of financial inclusion for the period 2011- 2021 to identify differences among south Asian countries. Our results reveal that Sri Lanka is the best performer in the inclusivity of financial products as well as removing barriers to financial inclusion in all four periods. While Pakistan and Afghanistan are the least financially included countries, also they failed to remove barriers to financial inclusion. Moreover, our empirical results suggest that individuals who are male, older, wealthier, and more educated are more likely to access financial services, with income and education exerting a higher influence. Further, age shows a non-linear (inverted U-shaped) relationship with financial inclusion indicators. Additionally, we found that individuals having a formal account are the most important indicators of financial inclusion. And the reasons for financial exclusion (i.e., not having an account) are mainly voluntary among South Asian individuals. In fact, it is found that policies like Pradhan Mantri Jan Dhan Yojana for India and National Financial Inclusion Strategy across all South Asian countries play a significant role in accelerating financial inclusion and helping in removing its barriers with different magnitudes. Therefore, our finding stresses the importance of heterogeneous integrated policy measures for the targeted groups of the population, particularly the most vulnerable group among South Asian countries.

Pradhan Mantri Jan Dhan Yojana and Financial Inclusion of Female Domestic Workers in Mumbai

The Pradhan Mantri Jan Dhan Yojana, launched in 2014, is an initiative toward 'Universal Banking Access,' to ensure that every household in the country has access to basic banking services. The paper discusses the effect of the PMJDY on the 'financial inclusion' of female domestic workers in Mumbai, who remain on the periphery of regular banking services. The study considers financial literacy, access to financial services, and the ability to make good decisions as metrics of financial inclusion based on a cross-sectional survey conducted among the population. Though the majority of the respondents have opened bank accounts either under PMJDY or traditional banking systems, financial literacy remains a huge challenge to the effective utilization of those accounts. While there is an increase in savings and a shift towards more formal means of financial management, low confidence in managing financial matters and social barriers get in the way of the empowerment of such women. Special interventions in terms of targeted financial literacy programs and social interventions are needed to fill such gaps if economic stability and autonomy are to be enriched for urban female domestic workers, as seen in Mumbai.

A Study on Evaluation and Implementation of Indian Social Security Programs and Initiatives in India

This study critically assesses the implementation of Indian Social Security Programs, employing a comprehensive research design that integrates qualitative and quantitative methodologies. The examination encompasses diverse factors such as financial inclusion, healthcare accessibility, education, and support for vulnerable groups. Findings offer a nuanced understanding of strengths, challenges, and areas for improvement in India’s social security landscape, focusing on programs like Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, and National Health Mission. The research’s practical implications extend to policymakers, administrators, and advocacy groups, providing evidence-based recommendations to refine and strengthen social security interventions. Addressing gaps in awareness, administrative efficiency, and inclusivity, the study guides practical interventions for enhanced program efficacy. This research stands out for its comprehensive evaluation of multiple social security dimensions, providing a holistic perspective on India’s initiatives. Synthesizing diverse data sources and incorporating beneficiaries’ lived experiences, contributes to the existing knowledge on social security implementation. The findings form a foundation for evidence-based policy-making, promoting a more inclusive, responsive, and sustainable social security framework in India. Additionally, the study contributes valuable insights to the global discourse on social welfare, illuminating challenges and opportunities in implementing social security programs amid a rapidly evolving socio-economic landscape.

Assessing the Impact of Prime Minister Welfare Schemes on Beneficiaries with Special Reference to Tamil Nadu, India

This research article presents a comprehensive study on the impact of Prime Minister Welfare Schemes (PMWS) on beneficiaries in Tamil Nadu, a southern state of India. The PMWS represent a pivotal component of India’s social and economic development initiatives, aiming to uplift marginalized communities and improve their living standards. This study investigates the effectiveness and outcomes of these schemes in the unique socio-cultural context of Tamil Nadu.Tamil Nadu, a state with a rich cultural heritage and a diverse demographic landscape, serves as an ideal microcosm to investigate the efficacy and outcomes of these schemes. This research, conducted through a combination of quantitative and qualitative methods, aimed to assess the implementation, accessibility, and outcomes of various Prime Minister Welfare Schemes in Tamil Nadu. The study focused on beneficiaries across different age groups, genders, and socioeconomic backgrounds.Key findings from the research include an examination of the utilization of schemes such as Pradhan Mantri Awas Yojana (housing for all), Pradhan Mantri Jan Dhan Yojana (financial inclusion), Pradhan Mantri Ujjwala Yojana (clean cooking fuel), and Pradhan Mantri Kisan Samman Nidhi (income support for farmers), among others. The impact assessment encompassed several dimensions, including economic upliftment, healthcare access, women’s empowerment, and education.

Does Financial Inclusion Matter for the Socioeconomic Development of Marginalized People? Evidence from India

This research examines the drivers of financial inclusion in the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme. Also, it investigates the influence of financial inclusion through PMJDY on the socioeconomic status of marginalized people. Primary data were collected from 393 marginalized people of Himachal Pradesh. This study presents new insights by analysing the demand-side perspective of marginalized people using structural equation modelling approach. The study identified outreach, quality of financial services, usage and accessibility as statistically significant determinants in the PMJDY scheme for financial inclusion. Further, results confirm that financial inclusion promoted by PMJDY substantially improves the socioeconomic status of marginalized people. The study links financial inclusion and the socioeconomic wellness of beneficiaries, with income serving as a moderator; this is the research’s unique contribution to reducing financial exclusion. The research findings have implications for policymakers and financial institutions in formulating effective strategies to attain comprehensive financial inclusion, which can contribute to a strong socioeconomic development of marginalized people through PMJDY.

IMPACT OF PRADHAN MANTRI JAN DHAN YOJANA PROGRAM ON ACCESS TO CREDIT

This research paper investigates the impacts of the Pradhan Mantri Jan Dhan Yojana (PMJDY) program on access to credit for individuals living below the poverty line in India since its inception in 2014. The PMJDY initiative aims to enhance financial inclusion and alleviate poverty by providing banking services and credit access to marginalized populations. The paper begins with a comprehensive literature review, tracing the historical context of financial inclusion in India, the evolution of policies, and previous research on the subject. It then delves into the PMJDY program's features, implementation, and progress, highlighting its efforts to offer zero-balance accounts and overdraft facilities. The paper employs regression analyses, both at the national and district levels, to examine the relationship between various factors, such as GDP per capita, population density, literacy rates, and PMJDY adoption. These analyses had shed light on the success of the PMJDY program in advancing financial inclusion throughout different regional dynamics. The findings provide insights into the program's effectiveness in improving credit access for the economically disadvantaged. Ultimately, this research contributes to the ongoing discourse on financial inclusion and informs policymakers on strategies to combat poverty and foster inclusive economic growth especially with policies relating to credit access.

Impact of Digital Financial Inclusion (DFI) Initiatives on the Self-Help Group: For Sustainable Development

Purpose: India has been the advocate the digital infrastructure addressing last-mile connectivity through financial inclusion by integrating innovative financial technology(fintech)and Digital Ecosystem for making financial services more accessible to a large number of people, at present India’s fin tech adoption rate is 87% in the world, Digital ecosystem will account for 30% of global revenues by 2025 as per McKinsey and Digital Financial Services(DFS) is a tool to boost the inclusive growth and access to the finance for solving societal issues and economic growth by adaption of SHG, JLG and Farmer Interest Groups(FIGs) in Farm and Non-Farm Sector and digital model more impact in creating micro-entrepreneurs in non-agriculture sector, employment in Sustainable agriculture, reducing poverty, income equality, equitable society with good health and wellbeing and economic growth with initiatives undertaken by the current government to improve financial inclusion in association with RBI, NABARD, NBFC in Empowering the sustainable development goals and more opportunities for women in rural areas as well as tire 3,tiere4 cities in improving lives with the Financial inclusion initiatives like the National Strategy for Financial Inclusion (NSFI), NABARD E – Shakti, Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, Bharat Interface for Money (BHIM), Electronic Benefits Transfer (EBT)/Direct Benefit transfer, JAM, e-KYC, smart panchayats, agriculture credit, Buy Now Pay Later(BNPL), Digital Banks, Central Bank Digital Currency(DBDC), Robotic Automation with AI, Block chain Technology, Neo banks, Kisan Credit. The innovations and revolution that have had the biggest effect on inclusive digital and financial services include BSB for MSMEs, Rupay, Paytm, PhonePe, Google Pay, and Bharat Interface for Money (BHIM), as well as cloud computing, biometrics, government e-marketplaces, AGMARKNET, and FPOs. RBI FINANCIAL INCLUSION INDEX2022 indicates a gap in FI in India and it impacts GDP, and Atmanirbhar Mahila - Aatmanirbhar Bharat. Design/Methodology: The research relies on secondary data, which were gathered from websites, journals, newspapers, magazines, reports, and Case studies on SHGs promoted by SKDRDP-Shri Kshetra Dharmasthala Rural Development Project. The data are descriptively analysed. Originality/value: Digital Financial Inclusion (DFI) Initiatives on The Self-Help Group: For Sustainable Development and its impact studied through various case studies- how it is helpful to self-help groups. Paper type: Conceptual framework

Policy Assessment of PMJDY – Pradhan Mantri Jan Dhan Yojana

Policy Assessment of PMJDY – Pradhan Mantri Jan Dhan Yojana

Indian Prime Minister Shri. Narendra Modi Ji and His Style of Leadership: Great, Heady Progress

The goal of the study is to focus on the government planning for self-sufficiency. In order to further explore the inner workings of the Pradhan Mantri Jan Dhan Yojana, the article takes up the intricate intricacies of a plan of the current administration. The study makes an effort to provide a thorough conceptual examination of the main tent of the current government.

Role of Fintech in Financial Inclusion in India

Financial Technologies (Fintech) have been playing a crucial role in banking the unbanked population thereby accelerating financial inclusion in India. Aftermath of the 2008 financial crisis, the advent of fintech companies began which has been tremendously impacting on every segment of the Indian economy in general and banking in particular. As such, fintech has emerged as one of the hotspots introducing a variety of technologies to the traditional banking to suit different needs of the masses with a view to reaching out every nook and corner of the country. Meanwhile, a number of initiatives implemented by the government has propelled the process of financial inclusion such as Pradhan Mantri Jan dhan Yojana (PMJDY), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Pradhan Mantri Mudra Yojana (PMMY), etc., which are all being advanced by fintech companies at large. In this way, the present paper sheds a light on the role of fintech in financial and outcomes of the study reveal that fintech has a significant role in spurring financial inclusion through a diverse use of technology such as Unified Payment Interface (UPI).

India's Financial Shape-up: PM Jan Dhan Yojana - Critical Review

The 'Pradhan Mantri Jan Dhan Yojana' (PMJDY), introduced in August 2014, stands as a flagship initiative by the Indian Government to promote financial inclusion. This paper undertakes a critical examination of the impact and effectiveness of PMJDY in shaping India's financial landscape over time. The program's primary goal was to extend financial services, including banking and insurance, to the sections of India's population that were either unbanked or underbanked. It aimed to foster financial empowerment, mitigate economic disparities, and encourage a transition towards a cashless economy. This critical analysis employs a multi-faceted approach to assess PMJDY. Firstly, it evaluates the level of financial inclusion achieved through the program, scrutinizing metrics such as the number of accounts opened, the reach of banking services in both rural and urban areas, and the accessibility of banking facilities. Secondly, the paper examines PMJDY's effectiveness in enhancing financial literacy and awareness among its beneficiaries. Thirdly, it delves into the program's impact on reducing leakages in social welfare schemes by implementing direct benefit transfers. Fourthly, it explores the role of technology and digitization in extending the program's coverage and improving its efficiency. Moreover, this review addresses the challenges and constraints faced by PMJDY, encompassing issues related to financial sustainability, dormant accounts, and service quality. It also contemplates the broader implications of the program concerning its contribution to economic growth, poverty alleviation, and the overall financial well-being of the nation. In conclusion, this critical assessment offers insights into both the strengths and weaknesses of PMJDY while presenting recommendations for further enhancements and policy adjustments. It sheds light on the program's role in shaping India's financial landscape, its influence on financial inclusion, and its potential to reshape the nation's economic prospects. Ultimately, this analysis seeks to contribute to well-informed discussions regarding the future of financial inclusion in India and the significance of PMJDY as a pivotal driver in reshaping the country's financial landscape.

Pradhan Mantri Jan Dhan Yojna: A Tool for Financial Inclusion

Financial inclusion helps emerging countries achieve inclusive development, and offers countries like India hope for sustained growth. Inclusive finance offers low-income and disadvantaged people access to inexpensive financial services. It helps in bridging the gap between financially weak individuals and the formal financial system by improving financial literacy and increasing the channels providing credit facilities. Marginalized groups need financial freedom to flourish economically and socially. Financial inclusion catalyzes economic and social progress, but it is not enough. The effect of the Pradhan Mantri Jan Dhan Yojana (PMJDY) on financial inclusion and India’s position in the global economy has been investigated in this article. The research is based on data obtained from sources such as the Reserve Bank of India, the National Bank for Agriculture and Rural Development, as well as various academic papers.

Demand for Financial Services and its Determinants: Micro Empirical Evidences from West Bengal, India

The strength of the economy of a country is closely connected to the soundness and effectiveness of its financial system, in general, and the banking system, in particular. In the Indian scenario, the banking sector plays a great role in the inclusion of groups of people in the formal banking system. Financial inclusion is focused on providing financial services to all sections of the society at a reasonable cost. The traditional measures of financial inclusion are focused on the supply dimension of financial services, but not the demand perspective. After the implementation of financial inclusion drives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), the demand side of financial inclusion gains new importance. This article attempts to recognize some of the demand-based parameters of the financial services after implementation of the PMJDY. The study is based on a primary survey conducted in some selected villages from the Bankura district of West Bengal, where the banking network is not adequate. Besides, the study also evaluates the effects of some socioeconomic factors of the demand of financial services. The empirical evidences show that the asset composition of the household and the income level of the family are effective in determining the demand for financial services.