Pradhan Mantri Jan Dhan Yojana Research Articles

A Study of Financial Wellbeing of Jan Dhan Account Holders in Rural Jaipur

The Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched in 2014 with the aim of providing universal access to banking facilities for all Indian citizens. The scheme has been successful in achieving its goal, with over 460 million accounts being opened as of March 2023. However, there is limited research on the impact of PMJDY on the financial wellbeing of account holders. This study aims to address this gap by investigating the financial wellbeing of Jan Dhan account holders in rural Jaipur. The study will develop an index of financial wellbeing based on a range of indicators, such as access to credit, savings, and insurance. The index will be used to compare the financial wellbeing of Jan Dhan account holders to that of non-account holders. The study will also use multivariate analysis to identify the factors that are associated with financial wellbeing. This will help to shed light on the mechanisms through which PMJDY may be contributing to improved financial wellbeing. The findings of the study will have important implications for policymakers and practitioners working to promote financial inclusion. The study will also contribute to the growing body of research on the impact of financial inclusion on individual and household well-being.

Status of Pradhan Mantri Jan-Dhan Yojana: A case study of Charadia village in Bhadrak district

Pradhan Mantri Jan Dhan Yojana is a nutritional mission for financial inclusion to ensure access to financial services namely, Banking, Savings and Deposit Accounts, Remittance, Credit, Insurance, pension in an affordable manner. It's obeyed is to ensure access of financial products and services at an affordable cost and use of technology to lower। Cost and widen reach. PMJDY has brought the unbanked into the banking system expanded the financial architecture of India and brought financial inclusion to almost every adult. Since the launch of this scheme in 2014, it has created a milestone in bringing millions to the banking sector. This paper tries to study the scheme in details and its progress across as well as in the State of Odisha.

ANALYZING OPPORTUNITIES AND OBSTACLES OF FINTECH IN INDIAN FINANCIAL MARKET

Fintech has become an integral part of every modern developed economy across the globe. It is inevitable for inclusive and sustainable development. Now it seems to be unjustified to envisage development in the absence of Fintech while surviving in the electronic age. The term ‘Fintech’ refers to the introduction of technology in the banking and financial services sector. This innovation in the banking and financial services sector intends to make financial services universally and easily accessible and affordable. It is not limited to the banking and financial sector rather it has reached every segment of our day to day life, whether it is economic or noneconomic, commercial or social, and professional or personal life segment. It is the outcome of the twenty-first-century technological world wherein technology is the basis of every successful life. The advent of the internet can be considered the foundation of today’s Fintech. Fintech has become the basis of round-the-clock online delivery of customized banking and financial services to every customer. It has its own merits and demerits like other things. However, it is the demand of the time in order to remain strong, vibrant, updated and competitive in the economic world. Fintech has enormous potential to change the pattern of financial transactions in particular and habit of society in general. It has brought a revolution in the entire economic world and made society global from the financial perspective. It has led to the improvement and innovation in the delivery of banking and financial services. Its prominent features are inclusiveness, universality, common interest, and technology-oriented. Direct Benefit Transfer (DBT), Pradhan Mantri Jan Dhan Yojana (PMJDY), Digital India, Demonetization, Goods and Services Tax (GST), and the COVID-19 pandemic proved a catalyst in the promotion and extension of Fintech across the country. Though Fintech in India is in its nascent phase it has a long distance to cover ahead. On the one hand, it has ample opportunities to avail, on the other hand, it has numerous challenges to face while completing its overall journey of growth and achieving milestones in the Indian landscape.

Financial Inclusion and Markets

The period 2015–2020 has seen major events Indian banking history. The period saw high levels of Non-Performing Assets (NPAs), bank mergers as well as enormous thrust of financial inclusion. In this article we explore how the stock prices of banks react financial inclusion as more bank accounts are opened under the financial inclusion mandate. The study has two distinct parts. In the first part, an analytical summary of Indian banking is presented. The study then considers financial inclusion data from Pradhan Mantri Jan Dhan Yojana (PMJDY) intervention. the financial inclusion data. We consider the data involving 34 banks covering the period January 2015-March 2020. Our sample has 23 public sector banks and 11 private banks. Monthly data for these banks were obtained for share prices, number of PMJDY beneficiaries, deposits in the accounts, Rupay cards, payments made at POS, mobile payments. Thereafter we use panel regression technique to establish the relationship between financial inclusion and banking stocks. We find that, banking returns decrease as bank sizes increase or NPAs mount. Our results also establish a positive relationship between financial inclusion and share price. While the evidence of financial inclusion affecting stock prices is weak, it does establish that growth in payment instruments do have positive effects. We also find a positive relationship between financial inclusion and cashless payments. However, we do not find a strong evidence of the market rewarding cashless payments. We also find that as number of cashless instruments (cards) and the payments in such accounts increase, more and more individuals make cashless payments. This once again highlights the importance of payments into the accounts of the beneficiary. Our findings suggest that while the market doesn’t reward how many new beneficiaries are added, it does reward the banks if the newly opened accounts attract deposits. This certainly augurs well as financial inclusion must play an integral part of the Indian financial system. Most importantly, our study suggests that new accounts must see deposits for the financial system to be rewarded. We also find that the market may not reward bank consolidation and hence any further consolidation may have to be relooked at.

A Study on Fostering Innovation Through Blockchain Technology and Fintech Highlighting Next Major Frontiers on Significant Challenges and Major Opportunities Related to Financial Services Industry and Digitalization Aspects

In the recent decade, India's financial inclusion journey has been amazing, and the government of India has actively encouraged it through the Digital India Movement and the Pradhan Mantri Jan Dhan Yojana. Poverty reduction and tackling the issues of securing a stable income could be crucial in achieving an inclusive society. Information and communication technology is gradually gaining access to the unbanked people and assisting in their integration into the financial sector. Digital technologies are promoting adoption and improving the standard of living for citizens. In this research paper, discussion with respect to the progress that has been made in the field of financial inclusion so far, as well as what lies ahead and how we can use and benefit from digital technology to create a more inclusive society. As a result of digitalization, organizations are being compelled to continuously review and innovate their business models. Particularly in the area of digital innovation, the financial services industry is undergoing significant change. Fintechs (financial technology startups) are known as a driver of these shifts since they produce novel technology-based solutions with user-centered methods to fulfil rising client expectations. Experts also believe that blockchain technology, as an emergent disintermediating digital innovation, will have a significant impact on the financial services industry. Fintechs and blockchain present incumbent enterprises with not only dangers and sources of disruption, but also opportunities for collaboration and innovation. The various challenges that still stand in the way of creating an inclusive society are described in this article. The importance of cooperation and openness among all significant stakeholders is emphasized in our recommendations for addressing the pressing issues and creating an inclusive workplace

An Enquiry into the Success of Pradhan Mantri Jan Dhan Yojana in Bihar: Empirical Evidence

The research examined the motives for creating PMJDY bank accounts and the influence of families' socioeconomic factors on multidimensional poverty status. On a sample of 300 families from the Muzaffarpur district of Bihar, logistic regression verified gender, education level, and PMJDY accounts significantly influence multidimensional poverty. Low education, particularly in women, was observed to increase the likelihood of multidimensional poverty, while PMJDY accounts users were less poor than non-PMJDY account users in the district. Financial literacy was identified as a crucial factor which must be given due consideration. Clarifying misconceptions about government programmes, including women in financial inclusion, and connecting people to PMJDY were keys to making this programme successful.

A STUDY ON FINANCIAL INCLUSION THROUGH “PRADHAN MANTRI JAN DHAN YOJANA” IN INDIA

This paper aims to study the necessity of financial inclusion in India with reference to Pradhan Mantri jan Dhan Yojana.The sustainable growth of a developing coutry like India is only possible through the financial inclusion as providing financial services to all the people.Pradhan Mantri Jan Dhan Yojana is an ambitious scheme for the biggest financial inclusion in the world.This scheme was announced by the Hon’ble Prime Minister Narendra Modi on 15th August 2014 and it was launced on 28th August 2014.On the inaugural day, 1.5 crore new accounts were opened.This effort will lead a sustainable economic growth and also help in eradicate poverty. Financial inclusion is a creative idea which encourages the banking tradition and plays an important role to reduce poverty. PMJDY is based on the principle of “Sab Ka Sath , Sab Ka Vikas” ie provide financial services to those people who excluded from financial access.This initiative provides services like banking facility, credit, remittiances , affordable of this scheme is to provide zero balance account to the people ie there is no prerequisite to maintain any minimum balance in PMJDY accounts. KEYWORDS: Financial inclusion, Sustainable growth, Developing countries, Pradhan Mantri Jan Dhan Yojana, Financial access.

A Study on Financial Inclusion and its Effectiveness on Direct Benefit Transfer Schemes

India's progress toward financial inclusion has been amazing during the past ten years, and the Indian government has actively supported it through initiatives like the Digital India Movement and the Pradhan Mantri Jan Dhan Yojana. To build an inclusive society, reducing poverty and solving the difficulties of securing sustained income may become crucial. Information and communication technologies are gradually opening up access to the unbanked people and assisting in attracting them to the banking industry. Digital technologies are promoting usage and improving residents' quality of life. In this essay, we'll talk about the progress made in financial inclusion so far, what comes next, and how we may use digital technology to create a more inclusive society. In August 2014, the government launched a new program called the Pradhan Mantri Jan Dhan Yojana to hasten and digitalize financial inclusion in the nation. As a result, a total of 320215027 beneficiaries received contributions totaling Rs. 793711.06 Lakhs. Additionally, as of April 2018, 240921418 recipients had received Rupay cards. The current study examines the financial inclusion through Direct Benefit Transfer in India with regard to the major social security programs, including Pratyaksha Hastaantarit Laabh (PAHAL), Direct Benefit Transfer for LPG, the Mahatma Gandhi National Rural Employment Guarantee Act, the National Social Assistant Program, the Scholarship Program, the Public Distribution System, and others. The National Social Assistance Program (NSAP), the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and Pratyaksha Hastaantarit Laabh (PAHAL), or Direct Benefit Transfer for LPG, are among the primary social protection programs that are highlighted (DBTL). The different obstacles to building an inclusive society are listed in this research paper.

Importance of Financial Inclusion – A Social Responsibility of Government of Madhya Pradesh

The term financial inclusion is made up of two words; financial which means anything related to finance and inclusion and it is related to practices which provide equal access towards resources and opportunities to those people who do not get enough opportunities and remain excluded. Financial inclusion is a social responsibility of the government as they need to help those people who are away from the banking facilities. Therefore, financial inclusion means providing equal access to the entire financial product and services to those people who are excluded from such services. Financial Products and Services include banking, insurance, investment, and a lot more. Financial inclusion play an important role in inclusive development and growth of the economy. In India, the central government, state government and RBI have been continuously coming up with new policies and schemes to improve the status of financial inclusion. There are different measures which have been initiated by government which includes Pradhan Mantri Jan Dhan Yojana (PMJDY) and many such others which aim to provide financial strength to the individuals who are not getting much opportunities for their development and growth. This study aimed to understand current status of financial inclusion and also to evaluate various schemes which have been initiated by the government towards the goal of financial inclusion and the study area is Madhya Pradesh. This study is mainly based on secondary data collection and a simple percentage method is used to analyze the data. On the basis of analysis, it is concluded that the nature of financial inclusion can be said to be progressive in nature, but the involvement of private sector banks is still low as compared to public sector banks and regional rural banks.

Index of Cashless Transaction

The promotion of cashless transaction is a policy priority for the Indian economy. The government of India has adopted various policy measures to promote financial services and cashless transaction starting with the ‘Pradhan Mantri Jan Dhan Yojana’ (PMJDY) in 2014 and controversial measure of demonetisation in November 2016. While the importance of cashless transaction is widely recognised, a proper yardstick is required to measure the extent and effectiveness of the policies for promoting the cashless transaction in an economy, which is absent. In the present article, we attempt to fill the gap by adopting the multidimensional index developed by UNDP for this purpose. This article constructs three alternative indices of the cashless transaction from 2012 to 2018 by aggregating different components of the cashless transaction. It also analyses the effectiveness of policies to promote cashless transaction separately on the trend of the overall cashless transaction of the economy and also on the different components of cashless transaction. It has been found that while demonetisation and post-demonetisation policies had a temporary effect on the overall value of the cashless transaction there is an increase in volume of the cashless transaction after the adaptation of PMJDY.JEL: E42, G18, G21

Public Financial Services Schemes for the Financial Inclusion of People under the BJP led NDA Central Government in India

The main objective of financial inclusion is to extend financial services to the large hitherto un-served population of India country to unlock its growth potential. The BJP led NDA central government under the Prime Ministership of Mr. Narendra Modi has initiated a large scheme of National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri Jan Dhan Yojana (PMJDY) in August, 2014 to provide universal banking services for every unbanked household based on the guiding principles of banking the unbanked, securing the unsecured, funding the unfunded and serving un-served and under-served areas. A digital pipeline has been laid for the implementation of PMJDY through linking of Jan-Dhan account with mobile and Aadhaar [Jan Dhan-Aadhaar-Mobile (JAM)]. With a view to further deepening the financial inclusion interventions in the country, PMJDY has been extended beyond 14.8.2018 with the focus on opening of accounts shifting from “every household” to “every unbanked adult”. The moto of financial inclusion is from Jandhan to Jansuraksha. Apart from this, the Modi government had also initiated a very good number of other schemes under its public financial services for the purpose of financial inclusion of financially excluded people in India. The success of these schemes were tremendous.

Progress and Prospects of Financial Inclusion in Andhra Pradesh, India

The importance of financial inclusion in bringing the unbanked population into the formal banking system is acknowledged worldwide. The present study is an attempt to examine the current status of banking in Andhra Pradesh and to evaluate the progress & performance of financial inclusion, as indicated by number of accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme and the enrolments made under the social security schemes like Prandhan Mantri Surakshit Bhima Yojana (PMSBY), Prandhan Mantri Jeevan Jyothi Bhima Yojana (PMJJBY) and Atal Pension Yojana (APY). The significant observations from the study are that, as on 31st March 2020, the total banking outlets in Andhra Pradesh were 17,296, of which the highest share of the bank branches was in rural areas (35 %) followed by the semi urban areas (31%), urban (25%) and metro areas (9%). The progress of PMJDY and the other social security schemes was also highly commendable during the period 2015-16 to 2019-20, but the market penetration of the social security schemes was low as compared to the accounts opened under the PMJDY in Andhra Pradesh. The performance of Regional Rural Banks (RRBs) was also not splendid in social security schemes as compared to the other public sector banks and private sector banks. Thus the huge potential in insurance market has to be tapped by the banks by explaining the benefits of insurance as a measure against risk.

Customer Perception Towards Pradhan Mantri Jan-Dhan Yojana (PMJDY): An Empirical Investigation from Slum-dwellers Perspective

The government-sponsored welfare programmes are instrumental in balancing economic growth and reducing inequalities in society. Society becomes inclusive only when the deprived people have access to banking and financial services. The policymakers and financial players emphasized the importance of financial inclusion programmes because of their significant impact on economic growth and the financial health of the economy. The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a government-led intervention programme with a national mission to provide banking facilities to all deprived sections in the country. The study focuses to examine the determinants of customer perception towards PMJDY. The study includes the slum dwellers of Bhubaneswar as the target group of beneficiaries for empirical research. The determinants include the delivery process (SERVQUAL) and outcome attributes associated with the social scheme. As customer perception is a categorical variable, the multinomial logistic regression model is adopted to test the hypothesis. The study results indicate that the beneficiaries consider reliability, assurance, tangibility and social connect dimensions as the likely factors to obtain a higher level of perception towards the welfare programme.

Financial Inclusion in Jammu & Kashmir: An Assessment of Pradhan Mantri Jan Dhan Yojana

There has been an intensive debate about the improvement in accessibility of financial services through PMJDY in India. After almost eight years of its inception, there is still a significant section of population, particularly in rural and unbanked part of the country which is not linked with the formal financial system. This paper attempts to assess the performance of PMJDY scheme, generally in India and particularly in Jammu and Kashmir. The public sector banks are the dominant players in implementing this scheme across the country, but in Jammu & Kashmir, private sector banks are leading from the front. Except the account opening process, other financial facilities being provided under this scheme are still not fully accessible throughout the region. There is a significant number of accounts under this scheme which are dormant and having zero balances. There is need to accelerate the financial literacy programs to financially educate the beneficiaries for better usage of financial services.

The COVID-19 pandemic: access to relief under social assistance programs by rural households in India

PurposeThis paper aims at analyzing the determinants of access to relief under social assistance programs among rural households during COVID-19 outbreaks in India.Design/methodology/approachThe study is based on the data of COVID-19-Related Shocks Survey, which covered 5,200 rural households across 6 states of India namely Andhra Pradesh, Bihar, Jharkhand, Madhya Pradesh Rajasthan, and Uttar Pradesh. The access to relief has been assessed as relief-in kind (RIK) as a free special package of wheat, rice, and pulses, supplied through the public distribution system; and direct benefit transfer (DBT) in cash under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana and the Pradhan Mantri Jan-Dhan Yojana (PMJDY). The association between demographic profiles of rural households and access to relief has been analyzed using the chi-square test. Further, marginal effects have been estimated to assess the determinants of rural households' access to relief.FindingsThe results show a significant association between types of relief vis-à-vis demographic profiles of the rural households. A significant difference in access to relief among rural households is also evident across the states. Further, the analysis of the marginal effects indicates that female-headed households belonging to lower social class, depending on non-agricultural occupation with lower income, belonging to below poverty line families and seeking wage employment, are more likely to access relief as food grains; whereas male respondents with lower age, belonging to lower-income quartile with memberships in Self Help Groups are more likely to access the cash benefit transfers.Practical implicationsThe COVID-19 pandemic has affected the food security and livelihood of many across the globe, which necessitated provisioning a package of support to everyone, particularly rural poor households. The World Bank undertook the COVID-19-Related Shocks Survey to provide a quick policy response for managing the risk of COVID-19 outbreak effectively. The results of this study provide timely insights for developing an effective relief strategy for rural households during a crisis.Originality/valueThere is limited investigation on access to relief by rural households during the COVID-19 outbreaks and factors affecting the access to relief in terms of cash and kind. This study has utilized a reliable data source to analyze the access of relief packages by the rural communities during the coronavirus outbreak.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0632.

Pradhan Mantri Jan Dhan Yojana (PMJDY) : Analyzing Performance Using Financial Inclusion Indicators

PMJDY (Pradhan Mantri Jan Dhan Yojana), one of India’s most popular financial inclusion programs, was touted as a potential game-changer that could transform decades of dreams of attaining complete financial inclusion into a reality. This article tried to verify these claims and closely examined the various financial inclusion indicators which should have changed after the introduction of this program. It was inferred that despite several flaws in its implementation, PMJDY generated a tremendous number of bank accounts for those who had none. The study found that, remarkably, females own more than half of the accounts. However, account usage among females is low due to fewer employment opportunities. Women empowerment and raising entrepreneurial spirit are some solutions to allow women to save money in the formal banking system. It has become feasible to make direct cash transfers to vulnerable people’s PMJDY accounts whenever necessary. Increased access to financial products can lift many people out of perpetual poverty. It is too early, however, to comment on the reduction of poverty and inequality in India due to PMJDY. PMJDY has not affected the C-D Ratio; an increase in profitable credit deployment is imperative for increasing bank profits. Another caveat is the low awareness and widespread financial and technological illiteracy preventing full-fledged access to the program’s benefits. Learning from the financial programs of other LMICs, the periodic assessment of PMJDY, and solving implementation problems are necessary for the program’s long-term sustainability.

Role of Pradhan Mantri Jan Dhan Yojana in Enhancing the Paradigm of Financial Inclusion in Rural India

This article examines the role of the Prime Minister Jan Dhan Yojana (PM JDY) in boosting public wealth. Millions of households around the country benefit from financial inclusion and banking access, as well as insurance coverage and a sense of security, thanks to this programme. As a result of integrating this scheme with many other government initiatives, money will be immediately credited into the accounts of the recipients, eliminating intermediaries and reducing leakages. This strategy enables access to micro-credit in the later stages of the programme. Many of the accounts created under this plan, however, were idle, a problem that will be addressed once the government links it to other government-run programmes like NAREGA Job Yojna and other direct cash benefit transfer programmes. Overall, this plan has the potential to be a game changer and alter the country's landscape. It might be able to help plug leaks and boost the efficiency of specific public distribution networks. A systematic questionnaire was used to collect primary data, while secondary data was gathered from a variety of sources including books, papers, and published materials. Finally, it makes an effort to propose relevant recommendations to improve PM JDY's standing in terms of increasing public wealth.

Appraisal of Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Appraisal of Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Determinants of Financial Inclusion Among Dalit Women in Kancheepuram District, Tamil Nadu

Over the years many efforts were made to improve the status of financial inclusion of people. Financial inclusion measures access and usage of financial products such as deposits, loans, insurance products and quality of financial services. Financial inclusion is the process of providing financial services to the people who are outside the formal financial system. High levels of financial inclusion improve economic development and equitable distribution of wealth. This study focuses on status of financial inclusion among Dalit women in Kancheepuram district of Tamil Nadu. It was found that education level of the people; government initiatives such as general credit card, Pradhan Mantri Jan Dhan Yojana; satisfaction of the self-help group model; financial practices and financial literacy were positively and significantly associated with financial inclusion. Usage of non-bank agencies and cultural barriers were negative and insignificant.

Appraisal of Pradhan Mantri Jan-Dhan Yojana(PMJDY)

Appraisal of Pradhan Mantri Jan-Dhan Yojana(PMJDY)