Pradhan Mantri Jan Dhan Yojana (PMJDY): A mega financial inclusion plan in India

Type Working Paper - ACADEMICIA: An International Multidisciplinary Research Journal
Title Pradhan Mantri Jan Dhan Yojana (PMJDY): A mega financial inclusion plan in India
Volume 5
Issue 5
Publication (Day/Month/Year) 2015
Page numbers 138-146
Financial inclusion is the need of the hour. It is delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups. Access to finance by the poor and vulnerable groups is a predominant factor for inclusive growth. Considering the importance and need of financial inclusion, the Prime Minister Shri Narendra Modi launched a mega and ambitious financial inclusion plan which is christened as “Pradhan Mantri Jan Dhan Yojana (PMJDY)”. PMJDY envelops an integrated approach to bring about comprehensive financial inclusion of all the households in the country. It will help the weaker sections and low income groups to have access to various financial services like basic savings account, remittance facility, insurance and pension. It will create a platform for inculcating the habit of saving money, provide formal credit avenues and plug gaps and leakages in public subsidies and welfare programmes. It cannot be gainsaid that this PMJDY is free from criticisms. In this backdrop, an attempt has been made in this paper (a) to discuss about the concept and status of financial inclusion in India; (b) to throw light on the different facets of the newly launched programme i.e. Pradhan Mantri Jan Dhan Yojana (PMJDY); (c) to study how the scheme helps bring the excluded poor into economic mainstream; (d) to explain the probable factors that may stand as an impediment for the successful implementation of PMJDY; and (e) to make concluding remarks.

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