Asian Journal of Management and Commerce
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P-ISSN: 2708-4515, E-ISSN: 2708-4523

2023, Vol. 4, Issue 1, Part D

Jan Dhan Yojana is a way for financial inclusion in rural India

Author(s): Dr. Sarfraj Ahmed

Abstract: The objective of financial inclusion in India is to bring the entire population, especially the poor and rural communities, into the formal banking system. Despite several years of independence, a significant portion of the Indian population remains unbanked, and ensuring financial inclusion for all has been a key goal of the government. Financial inclusion plays a crucial role in providing access to credit and financial services to even the economically disadvantaged segments of society. By promoting financial inclusion, the government aims to boost the savings habits among common people, particularly in rural areas. When people have access to formal banking services, they are more likely to save their earnings in secure and regulated accounts, fostering a culture of savings.The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a significant step towards achieving financial inclusion in India. The scheme has been instrumental in opening millions of bank accounts for previously unbanked individuals, especially in rural and underprivileged areas. Through PMJDY, people have been provided with no-frills accounts, RuPay debit cards, accident insurance, and other benefits, making banking accessible to the masses. By bringing the rural poor into the formal banking system, the PMJDY has had a positive impact on boosting savings habits among this section of the population. With access to formal banking channels, people are encouraged to save their surplus income, which can lead to greater financial security and economic empowerment.Moreover, financial inclusion through PMJDY has also contributed to reducing leakages in subsidy and welfare distribution. Direct Benefit Transfer (DBT) ensures that government subsidies and welfare payments are directly credited to the beneficiaries bank accounts. This approach has minimized the scope for corruption and diversion of funds, making the distribution of benefits more efficient and transparent. To critically examine the impact of financial inclusion through PMJDY on boosting rural savings, a comprehensive evaluation would consider factors such as the number of new bank accounts opened, the amount of savings mobilized, changes in household financial behaviour, and the utilization of credit facilities offered by the banking system.

DOI: 10.22271/27084515.2023.v4.i1d.178

Pages: 329-333 | Views: 729 | Downloads: 526

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How to cite this article:
Dr. Sarfraj Ahmed. Jan Dhan Yojana is a way for financial inclusion in rural India. Asian J Manage Commerce 2023;4(1):329-333. DOI: 10.22271/27084515.2023.v4.i1d.178
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