The Impact of Pradhan Mantri Jan-Dhan Yojana on Financial Inclusion in India

Abstract

To provide access to financial services to the marginalized sections of the society in India, a number of efforts have been done by way of nationalization of banks, establishment of cooperative and regional rural banks, permitting zero balance accounts etc by the government as well as the Reserve Bank of India. Many campaigns were launched but could not deliver as expected due to various factors such as lack of proper implementation, lack of effective use of technology or improper monitoring. Consequently, even after 67 years of independence, less than two thirds of the households, in the country have access to formal banking facilities. Thus, to bring maximum number of people, especially from the economically weaker sections, into the financial mainstream, the honorable Prime Minister of India, Mr. Narender Modi has launched The Pradan Mantri Jan Dhan Yojana - A National Mission on Financial Inclusion. This proposal has a comprehensive, user friendly and technology oriented approach and is expected to change the financial inclusion scenario of India. This article gives the salient features of this much hyped proposal, its potential challenges and the expected impact it can have on the financial inclusion.