Pradhan Mantri Jan Dhan Yojana Research Articles

‘ICT Supported Financial Inclusion for Inclusive Growth – for New Age Private Banks in India’

“Financial Inclusion is a delivery of Banking Services at an affordable cost to the vast sections of the disadvantaged and low income groups.” In this research work, an attempt has been made to have an insight into the different activities undertaken by the Government for the Financial Inclusion in India during the last few years. The programmes launched by some selected New Generation Private Sector Banks in India are also studied to know the present status of Financial Inclusion in India. It is a descriptive type of research work based on secondary data which has been collected from the web sites of the R.B.I., Ministry of Finance and the Banks selected for the study. The data related to the Financial Inclusion in India over the last 10 years has been considered for the research work. Financial Inclusion inculcates the savings habits among the people, saves the poor people from the vicious circle of debt from the informal sector.The New Age (Generation) Private Sector Banks are those which are established after 1993 under the new rules and regulations of R.B.I. These Banks have proved themselves as the most efficient Banks providing technology enabled Banking and Financial Services. ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc. are some of the examples of out of total 9 Banks of this type. The private Banks have been intentionally selected to know how much they are serious about the problem of financial exclusion and what efforts they are taking for the improvement of the deprived class of the society. Financial Inclusion is the key factor for the inclusive growth of the society. So as per the recommendations of the Khan Committee (2005). RBI issued guidelines to the Banks to extend their services to the unbanked areas through Business Correspondents with the help of ICT support. Pradhan Mantri Jan Dhan Yojana is playing an important role in the Financial Inclusion in the country. The National Digital Mission (NDLM) is working for the digital literacy among the people for improving their communication and accessibility to financial and other services. Attempts through various schemes like Zero Balance Account, Relaxation on KYC Norms, General Purpose Credit Cards, Easy Credit and Free Money Transfers, Financial Literacy Camps, Business Correspondents, Use of Technology, Branches in Unbanked and Rural Areas, etc. will definitely improve the financial condition of the people and it will boost the economic development of the nation. However, there is need to include more number of beneficiaries for the improved status of Financial Inclusion in the country.

PLASTIC MONEY: PROSPECTIVE AND CHALLENGES

In present era, it is impossible to imagine modern bank transactions, commercial transactions and other payments without using the plastic cards. Plastic currency is now gradually becoming a necessity across the globe as more and more developed countries are opting for plastic compared to paper as there are several inherent advantages. The growing involvement of smart phones has made technology applications much more accessible to users. The Government also move forward for a “Digital India” and its focus on growing electronic payments is significant drivers of growth in replacing physical payments with technologybacked solutions. India is at the stage of an amazing shift towards electronic money from traditional cash. For instance the Pradhan Mantri Jan Dhan Yojana (PMJDY), is slowly building recognition among people to move from paper to electronic money. The PMJDY alone has seeded over 150 million Rupay cards in the last year, in addition to the 400 million debit cards already in circulation. There is still emergence for significant increase in the usage of debit cards in the years to come as card. This paper focus on the challenges and future prospects of plastic money in India.

Progress of Pradhan Mantri Jan Dhan Yojana (PMJDY), A National Mission for Financial Inclusion in India

Progress of Pradhan Mantri Jan Dhan Yojana (PMJDY), A National Mission for Financial Inclusion in India

Empowering Women Through Financial Inclusion: A Study of Urban Slum

Executive Summary Financial Inclusion is considered to be a critical indicator for development and well-being of the society around the globe. Providing inclusive financial services, that is, financial services affordable for all, has become a basic priority in many countries including India. G-20 Nations have emphasized on financial inclusion as a facilitator for achieving gender equality and other sustainable development goals. Women empowerment is a radical approach concerned with transforming power relations in favour of female gender and considered essential for global progress. Thus, an inclusive financial model is being adopted in developing nations to achieve fundamental to formative objectives. The current article investigates the dimensions of women empowerment, that is, social, political, and economic. It also undertakes a test to see if the dimensions change with financial inclusion. The authors draw upon literature to develop a structured questionnaire on women empowerment and financial inclusion through schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) on women living in urban slums in the industrial town of Ludhiana, Punjab. The data were collected from 737 females living in urban slums with PMJDY bank accounts. The result indicated that PMJDY scheme has been quite successful especially in case of women in slums and has a positive influence on social, political, and economic dimensions of women empowerment. The study contributes to existing literature by advancing the debate on women in urban slums and identifies the substantial need for the development of formal financial system to enhance the scale of financial inclusion.

Rural Business Owners, Banker and Services: A Behaviour Model

Rural business owners have a continual need for credit. The lack of access to institutional finance is partly mitigated by the mega financial inclusion program in India (Pradhan Mantri Jan Dhan Yojana, PMJDY) in August 2014. Other than access, exclusion can also be caused by individual characteristics, intention, attitude, perceived barriers, awareness, and suitability of product and services, banking requirements as well as banker’s behaviour. This research proposes and validates a comprehensive model of outcome based on these factors in the context of PMJDY. Business owners from rural areas who opened bank accounts under PMJDY were the respondents. The study finds that the banking outcome is significantly influenced by banker behaviour, product awareness, and the general attitude towards banking. The attitude towards specific products, demographics and income level of the rural businessmen do not influence the outcome of the banking process. Perceived inconveniences in banking or deterrence influence the intention and general attitude. Thus, the general attitude moderates the inconvenience and outcome. The product awareness is influenced by the customer’s attitude and banker’s behaviour, which in turn influence the outcome; an increase in the level of awareness will positively influence the outcome and should be the second step of financial inclusion.

Role of Environmental Factors in Enhancing Financial Capability of Beneficiaries under Pradhanmantri Jan Dhanyojana (PMJDY) of Assam Graminvikash Bank of Nalbari District of Assam

Financial capability is the skill, knowledge, and dispositions that enable a person to make well-informed financial decisions throughout their lives. The concept of financial capability connotes both ability and opportunity. The key elements that determine financial capability are- i) knowledge, ii) skills, iii) confidence and attitudes and iv) responsible financial decision. The financial capability factors are best understood as a combination of characteristics that may act as barriers or enablers to financially capable behaviour. They split into- i) internal capability, which is influenced by- personal factors and ii) external capability which is influenced by societal factors and environmental factors. The main objective of this study is to examine the various environmental factors that influence financial capability building efforts of beneficiaries under Pradhan Mantri Jan Dhan Yojana (PMJDY). The paper is of descriptive and analytical in nature and based on primary and secondary data.

Pradhan Mantri Jan Dhan Yojana as a financial inclusion drive: a case study of West Bengal

On the completion of fourth year of PMJDY, an effort was made to review the extent to which the primary objectives of the government’s flagship financial inclusion scheme could be achieved. A survey was conducted on 1000 respondents from five selected districts in the state of whom 500 respondents newly opened a bank account under the scheme. The remaining 500 respondents having a normal bank account constitute the control group. It is observed that PMJDY could enhance merely the arithmetic bank account ownership. The real objectives like overdraft-enabled small entrepreneurship or more insurance benefits could hardly be achieved. The much hyped bank account-induced family happiness could not be identified after analysis of response. Severe lack of awareness among the common people about the scheme or its benefits has been noticed.

Impact of Public Intervention on Poor in Odisha: Special Focus on Pradhan Mantri Jan-Dhan Yojana

The establishment of Regional Rural Banks, cooperative societies, primary agricultural societies and introduction of priority sector credit guidelines are some of the state led initiatives which predominantly played an important role to develop a better scenario for the upliftment of the poor and weaker people in the country associated with agricultural sector and other allied sectors. But over the years it has been suggested in various literatures that the core aim of this type of financial inclusion may not be able to uplift the livelihood of the poor to an appreciable extent. This present paper evaluates the effects of PMJDY (nation-wide financial inclusion scheme) in the state of Odisha, and the results are being normalized for four different district the detail of which is mentioned in the below given matter. Study is based on primary data and the number of samples is 200 i.e. 50 from each district. The results are evaluated using one way ANOVA.

Status of Financial Inclusion in India, Persisting Challenges and Way Forward

Financial inclusion is a critical pillar of development and has been a major policy thrust for the Indian Government over the decades. However some of the major policy impetuses were received the last one decade resulting in some of the biggest policy interventions for financial inclusion in the world. Pradhan Mantri Jan Dhan Yojana, Direct Benefit Transfer under Digital Banking and Aadhar has been significant interventions in this area. Despite these and several areas policy measures as well as technological innovations adopted by RBI and banking sector, even though encouraging, is much less than satisfactory when it comes to their extent and penetration when it comes to usage by marginalized sections, people in the informal economy and those living in remote areas. The significant barriers for achieving inclusive growth are Financial illiteracy, lack of convenience, technology issues and viability. This study aims at integrating some of the results of existing literature on financial inclusion and role played by Government, RBI and the other banks in promoting inclusive growth. It also attempts to analyze the key persisting challenges on the demand as well as supply aspects of financial inclusion. On the basis of its findings the paper proposes a set of preliminary recommendations to strengthen and support financial inclusion in India. It has been observed that the financial sector has still not been able to design appropriate products in a sustainable way that can address the needs of the poor, those who are in the informal economy or to identify key gaps in a huge and diverse country like India where social security is very low for most of population. Technology obviously is playing and still needs to play a far greater role in addressing some of these challenges which the traditional banking models have failed to address.

Pradhan Mantri Jan Dhan Yojana: An Initiative under Financial Inclusion

Indian Government consistently makes its efforts towards inclusion of vulnerable section in organized financial system. This system might not only provide huge amount of cash flow to boost Indian economy but it could also help the government to facilitate inclusive growth through offering different services scheme like MNAREGA payment, pension, various subsidies etc. For the inclusive growth of the Indian economy, the GOI started Pradhan Mantri Jan Dhan Yojanain 2014. Financial inclusion is an innovative idea in India, which empowers the alternative new techniques to encourage the banking traditions and acts for reducing the poverty. Household coverage of this scheme is better in the district wise account opening report of Uttarakhnad state. We can say that PMJDY is playing a significant role in creating a universal platform for inclusive growth in India.

Policy Induced Financial Inclusion: A Case of Pradhan Mantri Jan Dhan Yojana (PMJDY) In Uttar Pradesh

This paper provides insights into the level of financial inclusion after implementation of PMJDY at the district and village level, in terms of level of utilisation of Basic Savings Bank Deposit account, use of RuPay debit cards and incidence of zero balance in Unnao district of Uttar Pradesh. It also describes the functioning of Financial Literacy Centres (FLCs) and issues/challenges faced in the process of implementation of the Scheme. Overall, it may be said that PMJDY has served the purpose of financial inclusion to a great extent as it has ensured opening of bank accounts of all the households in the study area. However, concerted efforts are needed to address the issues relating to Information and Communication Technology (ICT) in banks, Business Correspondents (BCs) and Financial Literacy Centers (FLCs) so that the tempo gained thus far is sustained and the goal of comprehensive financial inclusion is reached in near future.

Review of Initiatives taken by the Government and the Banking Regulator for Successful Transition to a Financially Inclusive Economy: An Empirical Study of India

The current study was taken up to review the initiatives taken by the Government of India and Reserve Bank of India to promote financial inclusion in India. The aim was also to study the impact of these initiatives on the financial inclusion. The paper also intended to explore the impact of increasing penetration of mobile phone and internet on financial inclusion. The study revealed that government initiatives like Pradhan Mantri Jan Dhan Yojana, Aadhar Enabled Payment Systems and Direct Benefits Transfer; regulatory reforms by Reserve Bank of India such as Immediate Payment Service, Prepaid Payment Instruments, differentiated banks; digital revolution and active participation of private technology companies, are facilitating in successful transition into a financially inclusive economy.

Analyzing the progress and prospects of financial inclusion in India

Taking data from Financial Access Survey, Global Findex and Reserve Bank of India bulletin, this paper tries to analyze the progress occurred and the future prospect of financial inclusion in India. Our analysis depicts that India has witnessed a quick progress in financial inclusion. Though there is long way to go to achieve the dream of universal financial inclusion, there is no doubt that tremendous progress has been achieved in the recent time. Specifically, after the implementation Pradhan Mantri Jan Dhan Yojana in August 2014, much improvement has happened in opening of bank deposit accounts. Similarly, the post‐dimerization period has seen a rapid growth of digital finance in India. Despite high growth of digital transaction, digital payment among the women, rural people, elderly people, and less educated people is much less than other groups of people. The provision of good digital infrastructure to the remote area, opening of more financial literacy centers and extension of credit to the marginalized people can help to fulfill the true essence of financial inclusion in India.

Role of Institutions and Support Systems in Promoting Organic Farming - A Case of Organic Producer Groups in India

The Pradhan Mantri Jan Dhan Yojana (Prime Minister People Money Scheme) created a record opening up of bank accounts in India in a very short span. The utility of the bank accounts is great for the financial inclusion and which was demonstrated across India in various ways. However, there are some concerns on the utilization of the bank accounts, as some studies pointing out the dormant bank accounts and overburden on the banking system with large number of accounts with little or no transaction for a longer period. There is also a case of using the wide post office network for the financial inclusion, which are reachable to every villager without any cost to government as well as the beneficiaries. This study focuses on the utilization pattern of the post office and bank accounts in India by using the Global Findex data collected by the World Bank in year 2011 and draw some lessons on how to increase utility of the bank accounts to general public without excessively burdening the banking system. The sample drawn is nationally representative with the sample size of 3518 adult members 1837 male and 1679 female. We find that post offices are relatively more likely than traditional banks to provide accounts to individuals who are most likely to be financially excluded such as the poor, less educated and those out of the labor force. Even though over all use of the bank accounts is low, they play a greater role in increasing savings habits and likely to play a greater role in direct cash transfer under different government welfare programs.

Product Awareness of Account Holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Product Awareness of Account Holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan-Dhan Yojana: An Evaluation

Financial inclusion is a process of providing access and usage of financial services like savings, credit, insurance and payment facilities by the financially excluded people. Initiatives towards financial Inclusion have been taken by the Government of India which includes priority lending, lead bank scheme, nationalisation of banks, Swabhimaan approach and Pradhan Mantri Jan Dhan Yojna (PMJDY). This article evaluates Pradhan Mantri Jan-Dhan Yojana scheme critically and its difference with a previous similar scheme.
 

Pradhan Mantri Jan Dhan Yojana: Finance for all to end “Financial Untouchability True or Myth

Pradhan Mantri Jan Dhan Yojana: Finance for all to end “Financial Untouchability True or Myth

Pradhan Mantri Jan Dhan Yojana (PMJDY): The Biggest Financial Inclusion Initiative in the World

The present study seeks to review the current status of the Pradhan Mantri Jan Dhan Yojana (PMJDY) and financial inclusion in India. For the sustainable development of the Indian economy, the Government of India launches Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014. Financial inclusion is an innovative idea which empowers the alternative techniques to encourage the banking traditions and acts as an enabler in reducing the poverty. A total of 18.28 crores accounts have been opened in rural areas by public sector bank, Regional Rural Bank (RRB) and private sector bank by 7th Feb 2018. Thus, 31.07 crores accounts have been opened in rural and urban areas. An amount of 74534.79 crores was in accounts which were opened under PMJDY. Household coverage was 100% in the district wise account opening report of Haryana state, while household coverage found 100 per cent in North Zone of India except J&K (99.71%). We can say that PMJDY scheme is playing a significant role in creating a universal platform for financial services for every citizen of India.

Customer Satisfaction in Operation of Pradhan Mantri Jan Dhan Yojana (PMJDY) Account: An Empirical Evidence

Customer Satisfaction in Operation of Pradhan Mantri Jan Dhan Yojana (PMJDY) Account: An Empirical Evidence

Financial Inclusion After PMJDY: A Case Study of Gubbi Taluk, Tumkur

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was introduced in August 2014 and has achieved record success in terms of ensuring almost 100 percent household coverage. The study attempts to examine the success of PMJDY in six Gram Panchayats of Gubbi. The study finds that new accounts have been opened by women, small and marginal farmers, and rural people with no formal education. The properly run, Common Service Centres have served an important purpose of facilitating financial services to rural population. Interestingly, demonetisation did not have any long term impact on the behaviour of users nor bankers but money lenders improved their services. The other financial schemes of the government pertaining to pension, insurance and social security have yet to make an inroad into rural sector. However, digitalization of the economy needs to be carefully addressed because many respondents were not comfortable in using online, internet, ATM and mobile banking.