Pradhan Mantri Jan Dhan Yojana Research Articles

Pradhan Mantri Jan-DhanYojana – A Game Changer for the Economy

Financial inclusion is a national priority as it is an enabler for inclusive growth. It is important to take banking services to the unbanked and under banked areas, and to the people who are hitherto excluded and left to fend for themselves for their financial needs. In order to provide the much needed thrust to financial inclusion, a flagship programme called the ‘PradhanMantri Jan-DhanYojana’ (PMJDY) was announced by Honourable Prime Minister on 15th August 2014. This paper presents an overview of the scheme. An analysis of views of 50 customers covered under the scheme of State Bank of India is summarized, followed by concerns raised and the way forward.

Financial Inclusion in India Through Pradhan Mantri Jan Dhan Yojana : An Empirical Analysis of Statistical Evidence

Pradhan Mantri Jan Dhan Yojana (PMJDY) is one of the remarkable steps taken by the present Government of India towards financial inclusion. Through this policy, Reserve Bank of India relaxed banks' KYC norms and also extended zero balance facility along with accidental insurance facility on opening the saving bank account. However, merely opening the bank account is not effective financial inclusion unless a customer becomes financially literate and starts using different financial instruments like deposits or credit facility regularly. The aim of this study was to firstly investigate the spread of bank branches with respect to credit and deposits. Secondly, the study aimed to identify responsible factors leading to significant changes in deposits and credit disbursement, and thirdly, the study explored the efforts taken by banks for spreading financial literacy. Regression analysis model and Pair t - test were adopted to analyze the effectiveness of bank branches and interview responses of bank managers were also analyzed to ascertain the qualitative efforts made by banks for spreading financial literacy. After analysis, it was found that after implementation of the policy, the credit disbursement by banks and deposits in banks increased. The number of zero balance bank accounts opened in PMDJY, and the low efforts made by banks for spreading financial literacy are threats for this scheme and for increasing financial inclusion in India, which need to be taken care of at policy levels.

Pradhan Mantri Jan Dhan Yojana (the Financial Inclusion): A Study of Awareness

Time to time Indian Government consistently make its efforts towards inclusion of rural customer (investors) in organised financial system. This might not only provide handsome amount of cash flow to boost Indian economy but it could also help the government to facilitate rural development through offering various services like gas subsidies etc. Thus, nomenclature of financial inclusion varies due different ruling party, but the primary objective remains the same i.e. to flourish the bottom of the pyramid of financial market. The current states elucidates that present government upto some extent turn out to be successful by opening around 12.54 crore new bank account (up to January 2015) and deposits of more than Rs. 5000 crore (up to November 2014) through new form financial inclusion Pradhan Mantri Jan Dhan Yojana (PMJDY). But it has been observed that still the largest part of the rural market in untouched and not explored fully. Hence, this paper is an attempt to study about the awareness of PMJDY among its potential investor i.e. rural customer.

Review of Pradhan Mantri Jan Dhan Yojana: Sab Ka Sath Sab Ka Vikas

Most of the research on PMJDY either talks about benefits of the scheme or else they criticize the scheme but very few researchers covers the benefits and the suggestions to overcome the limitations of the scheme. Through this paper, an attempt is made to understand the PMJDY, to evaluate the progress of PMJDY and to suggest the areas of improvement for PMJDY. The study is based on secondary data collected from the authentic sources. The methodology used is mainly the percentage analysis and graphical presentation.

Financial Inclusion and Pradhan Mantri Jan Dhan Yojana: An Empirical Study Conducted in the villages of Mulshi Taluka in Pune District.

Objectives: The aim of financial Inclusion schemes is to allow the poorer sections to avail themselves various financial products and services through bank account. This study is an attempt to examine the knowledge level of Jan DhanYojana schemes and usage / adoption of scheme benefits by the Farmers of Mulshi Taluka of Pune District. Methods/Statistical Analysis: This paper carries forward the data and information collected through structured interview schedule and discussions. The general information of banking habits, awareness level and using the benefits of Pradhan Mantri Jan Dhan Yojana (PMJDY) Scheme, etc were analyzed especially the first phase of PMJDY implementation. Purposive cum referral sampling method was carried out in the villages of Marunji, Hinjiwadi, and Punawale villages. Sample size consisted of 62 farmers. The data analysis was prepared using descriptive statistics and Chi-Square Test. Findings: There is no major impact of the Jan Dhan Yojana schemes especially of first phase implementation on farmers. Majority of them are not aware of the benefits derived from the financial inclusion mission. Most of the people are having partial information about the scheme, which is about the insurance schemes and nothing more. The result to verify the guesses shows clearly that there is no significant difference between the demographics such as gender, age, education, maritial status and monthly income of farmers and knowledge of Jan Dhan Yojana Scheme benefits. It is also viewed majority of them have opened Jan Dhan Yojana accounts in banks because it can be opened with zero balance. There is lack of financial literacy in rural areas. The findings corroborates with rest of the available studies. Creating consciousness to use the financial products and services through awareness campaign among the rural people as well as training to business correspondents is considered necessary for the success of Jan Dhan Yojana. Improvements: Further this paper could be enhanced by broadly discussing the other facets of financial Inclusion mission in the selected villages as well as for other talukas of the district.

Pradhan Mantri Jan Dhan Yojana (PMJDY):A Step towards Eradicating Financial Untouchability

Financial untouchability is a phenomenon that results from certain situations that prevents people to access formal financial systems. In the absence of a formal financial system, people are forced to go to local money lenders who charge exorbitant interest rates from poor people. Financial untouchability also creates the problem of social discrimination. The only solution to fight with the evil of financial untouchability is promotion of financial inclusion, which may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. Financial inclusion can be achieved by ensuring access to financial services, affordability of services, and actual utilization of financial services. In order to promote financial inclusion, the Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched across the country. It is a mission mode project of the Government of India. The scheme aims to ensure universal access to banking facilities in each and every household of the country. The scheme has provision of opening a zero balance account with free debit card and inbuilt accidental insurance. It also includes program of financial literacy, access to credit, and insurance facility. The present study made an attempt to study the effectiveness of PMJDY by analyzing the effectiveness of the financial literacy program and awareness towards PMJDY. The study was carried out among workers in working in Central University of Rajasthan and villagers of Bandrasindri village in Ajmer district of Rajasthan. The primary data was gathered in the form of discussions held with respondents in 2015. The secondary data were collected from various published and non-published sources. The findings of study showed that still, there is a long path which needs to be covered to eradicate financial untouchability in a real sense from our country.

Awareness Level about PMJDY: A Study of Kurukshetra District

The main purpose of this research paper is to know about the awareness and impact of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) on poor people of India. The study aims to define the reasons for opening the bank account under this scheme. The paper selected for an exploratory study using the close-ended and multi-choice answer questionnaire. The 100 people interview to fulfil the questionnaires. F-test is used to know about the impact of PMJDY on poor people of India. The paper provides insights about the impact of PMJDY on the poor people. The study also finds that there are so many reasons for opening bank account under this scheme like, zero-balance account, ATM and so on. The research is conducted on a small area of India and the sample also was less. So to generalise the result is difficult. Therefore, further researchers are encouraged to conduct the study on proposed propositions with a large sample and a large area. The paper includes reasons for the opening bank account under PMJDY. Because of this research, we can know about the perspectives of opening bank account. It will help to attract people to use the bank account. This paper helps to know about the implications of PMJDY, so that in future this type of schemes can implement smoothly.

Usage Behavior of Basic Savings Bank Deposit Account among Customers in Coimbatore District

Financial inclusion is providing banking services to underprivileged and low income people who are excluded in the formal financial system. One of the initiatives taken by the government to improve financial inclusion was to provide Basic savings bank deposit account (formerly No frill account) for the rural households as part of inclusive banking. Recently government has launched ‘Pradhan Mantri Jan-Dhan Yojana' a National Mission for Financial Inclusion to ensure people from rural area and low income population to have access to banking services, like Savings, Deposits, Remittance, Credit, Insurance, and Pension. The author's attempts to study the usage behavior of account holders of Basic Savings Bank Deposit Account (BSBDA) in sub urban areas of Coimbatore district where three villages are selected and results are presented through percentage analysis and graphical representations. The authors also have evolved a Socio economic model of Basic savings bank deposit account to establish a relationship between Awareness and Transactional usage, Awareness and Socio economic variable, Transactional usage and socio economic variable. The study finally attempts to test whether there is any significant relationship exists among Socio economic variables influencing the awareness and transactional usage of the account holders which affect the usage behavior of Basic savings bank deposit account (BSBDA) holders

Awareness of Savings and Investment Options in Z Category Cities of India: A Study with Reference to Vellore City

Domestic savings of a nation determine the strength of an economy. Over a decade, savings behaviour of individuals in small cities and towns has influenced the gross domestic savings of nations across the globe. This changing savings pattern has an influence on the investment patterns as well. Hence, to understand this, a study was conducted in a Z category city - Vellore , Tamil Nadu. The study aimed to understand the drift in savings and investment patterns, awareness about the modern means of savings and investment options, and how effective is the role of investment advisors in instrument selection. The data were collected through a structured questionnaire that was administered to the residents of Vellore city. The results were tested with statistical tools like analysis of variance (ANOVA) and chi-square. The results revealed that individuals of the city were quite aware of the difference between savings and investments, irrespective of their demographic aspects. However, proper guidance is needed, for which investment advisors need to take measures. In addition, similar studies need to be conducted at several places across India, and effective measures, such as implementation of Pradhan Mantri Jan Dhan Yojana and such others need to be promoted to improve the general public's financial inclusion process in the Indian money market.

Change in Financial Literacy in Punjab and Haryana Post-Financial Inclusion Schemes

Financial literacy has become increasingly important over the past decades. There is a growing belief that the individual would need to become more self-reliant in the future. Increased competition and more complex products in the financial services industry leave many people ill-equipped to cope with the sophisticated choices they may need to make. While defining Bhartiya Model of Financial Literacy, Purohit. H (2015) in his new model of financial literacy in Indian context on Ictpost said that Financial literacy can be defined as a small subset of Purusharth which though cannot be understood in isolation yet it deals with the financial knowledge, behavior, attitude, approach choice pattern, emotions, mindset and lifestyle keeping in view that Moksh (oneness with God) and not the material wealth is the top priority, for overall happiness of self, family, society, nation, world and the universe. There are several schemes which have been launched in India under financial inclusion like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) so that people can have the knowledge and access to all these schemes. So there is a need that people should have the knowledge of financial products and services and also they should be financially included.NCFE conducted a survey before these schemes were launched, but the question is has the financial literacy improved now? This has to be researched.Furthermore, and most importantly, all the earlier studies have focused upon improving financial literacy using OECD (Organization for Economic Co-operation and Development) model but actually the studies need to take into consideration BMFL (Bhartiya Model of Financial Literacy) in evaluating and creating new knowledge for improving the financial literacy among people. Researches should also evaluate impact of post-financial inclusion schemes (launched by our Hon’ble Prime Minister Narendra Modi) on the financial literacy in the states of Punjab and Haryana.

Impact of Commercial Deposit in Banks with GDP in Context with Pradhan Mantri Jan Dhan Yojna

For Policymakers Financial inclusion is a buzzword the policymakers and governments for a long time. Attempts have been made by the policymakers and financial institutions to bring a large no of sections from the rural population to be a part of the banking system having realized that financial inclusion is the essence for sustainable economic growth & in order to develop a country like India. Inclusive growth becomes impossible without financial inclusion. Financial inclusion is also must for the economic development of the country. In order to reduce the degree of “financial untouchability” the new government has come up with a big bang action plan which is popularly known as “Pradhan Mantri Jan-Dhan Yojana”. It’s a mega financial inclusion plan for the objective to cover all the households in the country with various banking facilities along with inbuilt insurance coverage. The present paper is an attempt to highlight the impacts of total saving deposits with commercial banks on Indian GDP in Context with Pradhan Mantri Jan Dhan Yojna. The study is purely based on secondary data which covers 40 financial years (1975-76 to 2013-14).

Financial Inclusion and Actual Use of Financial Services by the Poor 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 utilisation 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 utilisation 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 labour 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 programmes.

Pradhan Mantri Jan Dhan Yojana: A vehicle for financial inclusion

The present study seeks to investigate the current status of the PMJDY in India. The results revealed that the contribution of rural sector in terms of accounts opened under PMJDY was relatively higher than the urban sector in all the banking sectors namely, public sector banks, regional rural banks and private banks. The results further revealed that more than 70 percent of the accounts opened under PMJDY were opened with zero balance (626.34 lakh) depicting the weakness in the implementation strategy of the plan regarding easy access to banking system. From the public sector banks and RRBs, the State Bank of India plays an important and leading role in the opening accounts under PMJDY. The state-wise scenario of PMJDY shows that the highest number of accounts was opened in Uttar Pradesh including both rural and urban sectors due to its highest population rate. Whereas, Punjab has become the third state after Kerala and Madhya Pradesh where all households have at least one bank account.

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.

Banking the unbanked: Financial Inclusion and Role of banking

One of the important challenges facing the economic planners of India is to achieve inclusive growth in the country. Governments both atCentre and state level have been implementing a number of schemes in social and economic fields towards achieving inclusive growth. One such tool is Pradhan Mantri Jan DhanYojana (PMJDY) scheme launched in 1914 with an objective of achieving financial inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, and Insuranceand Pension in an affordable manner, especially to the deprived section of the society. The scheme since from its inception has achieved milestones, creating an example of other countries to follow. This paper will evaluate and analysis the PMJDY in reference to its contribution towards financial inclusion in the country.It will analyze the progress of Jan Dhan Yojanain the country which is regarded as amajor tool for financial inclusion.