A Study on Impact of Financial Inclusion with special reference to Pradhan Mantri Jan Dhan Yojana (PMJDY)

Jyoti Verma

Assistant Professor, Gian Jyoti Group of Institutions

Jaspreet Kaur

Lecturer, Gian Jyoti Group of Institutions



There is a relationship between development of financial markets and economic growth. Thus the development of financial market and the reduction of poverty on a larger scale also contribute towards economic growth. With a population of over 125 crore, 40% of families do not have access to banking and other financial services and such households have to rely on entrusted credit lenders who charge heavy interest from the man thus pushes them to an inescapable cycle of poverty. So the basic objective was to provide account to every family along with banking services. Finally, financial inclusion comes as a sign for better future and seamless social inclusion because a population that identifies itself best with the rest of the society contributes more positively towards economic progress. Many initiatives taken by the government specially targeted towards rural people in India. But unfortunately, financial systems in India till date have not seen enough in uplifting the lives of the bottom of the pyramid masses because providing basic financial services such as bank accounts, credit, and insurance have a higher cost for those people. The proposed paper attempts to address upon challenges and strategies of the Pradhan Mantri Jan Dhan Yojana and its impact on the people and financial institutions and how all this has shaped the present degree of inclusion in India.

Key Words: Financial Inclusion, No frill account, Inclusive Growth, Financial services.


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