CHAPTER I

INTRODUCTION

ABOUT PMJDY

1.1 ABOUT US

1.2 HISTORY

1.3 INVESTMENTS

1.4 PERFORMANCE

1.5 CRITICISM

1.6 SCHEME DETAILS

1.7 BENEFICIARY OF PMJDY

1.7.1 ZERO BALANCE ACCOUNT

1.7.2 DIRECT BENEFIT TRANSFER

1.7.3 LOAN BENEFITS

1.7.4 MOBILE BANKING FACILITIES

1.7.5 MICRO-INSURANCE UNDER PMJDY

1.8 GROWTH AND ACHIEVEMENT

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 1.1ABOUT US

Pradhan Mantri Jan Dhan Yojana (PMJDY), is financial inclusion program of

Government of India which is applicable to 18 to 65 years age group, that aims to
expand and make affordable access to financial services such as bank accounts,
remittances, credit, insurance and pensions. This financial inclusion campaign was
launched by the Prime Minister of India Narendra Modi on 15 August 2014. He had
announced this scheme on his first Independence Day speech on 15 August 2014.

Run by Department of Financial Services, Ministry of Finance, under this

scheme 1.5 Pradhan Mantri Jan Dhan Yojana (PMJDY) PM Modi launches the
"Pradhan Mantri Jan Dhan Yojana" Country India Prime Minister(s) Narendra Modi
Ministry Finance Key people Arun Jaitley Launched 28 August 2014 Website
www.pmjdy.gov.in Crore (15 million) bank accounts were opened on inauguration
day. [2][3] The Guinness Book of World Records recognized this achievement,
stating: "The most bank accounts opened in one week as a part of the financial
inclusion campaign is 18,096,130 and was achieved by the Government of India from
August 23 to 29, 2014".By 27 June 2018, over 31 crore (318 million) bank accounts
were opened and over ₹792 billion (US$12 billion)were deposited under the scheme.

Financial inclusion is connotes to the delivery of financial services like

savings, credit, insurance, subsidies and other banking services at a minimum costs to
sections of disadvantaged and low- income segments of society, since banks are the
lifeline of the economy hence the availability of banking services to the entire
population without discrimination is the prime objective of financial inclusion. In the
Indian context, the term ‘financial inclusion’ was used for the first time in April 2005
in the Annual Policy Statement presented by Mr. Y.Venugopal Reddy,the then
Governor, Reserve Bank of India . Later on, this concept gained ground and came to
be widely used in India and abroad.

While recognizing the concerns in regard to the banking practices that tend to
exclude rather than attract vast sections of population, banks were urged to review
their existing practices to align them with the objective of financial inclusion. The
Report of the Internal Group to Examine Issues relating to Rural Credit and

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Microfinance (Khan Committee) in July 2005 drew strength from this announcement
by Governor Mr. Y. Venugopal Reddy in the Annual Policy Statement for 2005-06
wherein he had expressed deep concern on the exclusion of vast sections of the
population from the formal financial system. In the Khan Committee Report, the RBI
exhorted the banks with a view to achieving greater financial inclusion to make
available a basic “no-frills” banking account.

The recommendations of the Khan Committee were incorporated into the

midterm review of the policy (2005–06). Financial inclusion again featured later in
2005 when it was used by Mr. K.C. Chakraborthy, the chairman of Indian Bank.
Mangalam became the first village in India where all households were
provided banking facilities. Norms were relaxed for people intending to open
accounts with annual deposits of less than Rs. 50,000. General credit cards (GCCs)
were issued to the poor and the disadvantaged with a view to help them access easy
credit. In January 2006, the Reserve Bank permitted commercial banks to make use of
the services of non-governmental organizations (NGOs/SHGs), micro-finance
institutions, and other civil society organizations as intermediaries for providing
financial and banking services.

Now, following the main concept of financial inclusion PMJDY is definitely a

milestone in Indian banking sector. It has some of the most important components
which were draft by the ministry of finance with a great view to provide best
banking services to unbanked class of people. The six pillars which will drive the
PMJDY project to establish reality in financial inclusion covers ensuring universal
access to banking facility, providing basic banking facility, financial literacy program,
micro credit availability, micro insurance and unorganised sector pension scheme.

Financial Literacy is an important adjunct that drives the Pradhan Mantri Jan
Dhan Yojna (PMJDY) mission towards its goal to attain financial inclusion. Though
the financial literacy initiatives in the first stage have spearheaded in opening a
large number of basic bank accounts, the continuity in maintaining operational
accounts is still not a reality. The present study attempts to measure the extent of the
participation through financial literacy camps and to analyse the changes in
the strategies adopted. The effectiveness of the initiatives was also measured in terms

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of RuPay card activation. The study is based on secondary data, followed by an
empirical analysis to draw a conclusion. Around 19.3 lakhs school students and 2.7
lakhs skilling school students were covered in the second phase. The strategies for the
financial literacy have also undergone a massive change in this phase with respect to
the structure of course, the materials and tools used in knowledge dissemination,
reporting mechanism of financial literacy coordinators and use of media. The level of
active cards was ascertained at 44%, which is attributed to ‘resistance to change’
attitude of the elderly population and minimal scope for use of financial products by
students. The focused initiatives in the second phase have fuelled the mission, though
the current status is not fully satisfactory, the major results are expected to show in the
near future as the programmers are aimed at the student population who are
tomorrow’s decision makers.

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 1.2HISTORY

The scheme was launched by PM Narendra Modi on 15 August 2014. Slogan of the
Scheme is "Mera Khatha, Bhagya Vidhatha (meaning "My account brings me good
fortune")[6] The scheme was launched after the failure of previous such schemes
including Swabhimaan.[7] Swabhimaan was a campaign of the Government of India
which aims to bring banking services to large rural areas. It was launched by Sonia
Gandhi, the Chairperson of the United Progressive Alliance party in the presence of
Shri Pranab Mukherjee, the Union Finance Minister and Namo Narain Meena, the
Union Minister of State for Finance on February 10, 2011.
Government of India lays special emphasis on financial inclusion of citizens as it is
crucial to poverty reduction. Exclusion of a large number of people from any access
to financial services prevents the growth of our country. A scheme to empower
citizens financially was highly needed so that everyone can reap the benefits of
growth and development.

Pradhan Mantri Jan Dhan Yojana (PMJDY), the biggest financial inclusion initiative
in the world, was announced by the Hon'ble Prime Minister Shri Narendra Modi on
15thAugust 2014 from the ramparts of the Red Fort and launched by him on
28th August 2014 across the country. While launching the Yojana, the Prime Minister
had described the occasion as a festival to celebrate the liberation of the poor from a
vicious cycle. Prime Minister had referred to the ancient Sanskrit verse: Sukhasya
Moolam Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam - which puts
the onus on the state to involve people in economic activity. "This Government has
accepted this responsibility," the Prime Minister had said. The Prime Minister had
also sent email to an estimated 7.25 lakh bank employees, exhorting them to help
reach the target of 7.5 crore bank accounts, and bring freedom from financial
untouchability.

On August 28, 2014, the day of the scheme’s launch, over 1.5 crore bank accounts
were opened across India. This is certifiably the largest exercise of this nature on a
single day across the globe. The Chief Ministers of about 20 states and several Union
Ministers participated in the lauch ceremony in different cities of India. HRD Minister
Smriti Irani launched the scheme at Surat, External Affairs Minister Sushma Swaraj
launched it at Bhopal, Information Minister Prakash Javadekar launched it at Pune,
and Home Minister Rajnath Singh was present at the Lucknow launch function. On
the occasion of the launch of the scheme, the Prime Minister said, “If Mahatma
Gandhi worked to remove social untouchability, if we want to get rid of poverty, then
we have to first get rid of financial untouchability. We have to connect every person
with the financial system. And for that this programme has been given impetus. When
a bank account is opened, it’s a step towards joining economic mainstream.”

Prior to the launch of the PMJDY, the Reserve Bank of India relaxed its stringent
‘know your customer’ (KYC) norms. Low-risk customers will now have the leeway
to provide KYC documents within six months of opening a bank account. In
accordance with the PMJDY, ‘small accounts’ may be opened with banks by those

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who do not hold ‘officially valid documents’ that are required under current KYC
norms. All that shall be required to open these accounts is a self-attested photograph
and the signature or thumb print of the person applying for the account. These
accounts, however, will be subject to certain limitations – total deposits may not
exceed INR 100000 in a year and total withdrawals cannot be over INR 10000 a
month. The account balance in these accounts may not exceed INR 50000 at any point
in time. According to the RBI, these small accounts will be valid for a year. Within
this period, if the account holder applies with one of the KYC’s acceptable official
documents, the account will be allowed to exist for another year.

The Prime Minister said that with the launch, the momentum of inclusive financial
networking should gain momentum (Gadi apne aap chalne lagti hain). With new
branches, new infrastructure, new jobs should also be generated. The scheme has,
however, attracted criticism from some quarters. The Hindi nomenclature of the
scheme has also been criticized.

The whole scheme is generally financial literacy oriented therefore there should be a
proper training camp sessions for the Bank Correspondents (Bank Mitra) as they are
the middlemen of the scheme as well as one of the crucial factors too. A financially
illiterate person shall be in need of a guide whom with he can discuss and ask things
related to the scheme. Great dedication and involvement of Bank Correspondents will
definitely take the programmer to some great heights.

No doubt this is the most successful financial inclusion programmed introduced by

the government of India, Guinness Book of World Records has also recognized the
Achievements made under PMJDY, but it is quite possible that multiple accounts
would have been opened by single person in different banks either due to
unawareness or by greed. Although the scheme is very clear in providing single
benefit to one person only, irrelevant to the multiple bank accounts opened by him.
Bank can also establish a single information sharing system to weed such multiple
accounts.

The key factor for successful implementation and outstanding performance of this
scheme is in the hands of banks; therefore it’s a great challenge for every nationalized
bank as they will need more manpower, technology and better risk management
techniques.

The scheme gives a free accident insurance cover worth Rs. 1 lakh to the every single
account holder, the holder must use the Rupay debit card at least once every 45 days
which is quite difficult for remote tribal areas even after the presence of Bank
Correspondents.

The first phase of this scheme starts from August 15, 2014 to August 14, 2015 which
envisages the following:

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(a) All households across the country have access to banking facilities with at
least one Basic Bank Accounts with a bank branch or a fixed point Business
Correspondent (BC).
(b) All households have RuPay Debit Card with Rs. 1 lakh inbuilt accident
insurance covers.
(c) If bank account is operated satisfactorily for 6 months, Rs. 5000 overdraft
facility will be granted to only Adhar enabled accounts.
(d) Direct Benefit Transfer facility of various government schemes will be
provided through bank accounts to the beneficiaries.
(e) The existing Kisan Credit Card is proposed to be issued as RuPay Kisan Card
to the farmers.
(f) Financial literacy programme under the scheme will be implemented up to
village level.

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 1.3 INVESTMENTS

Pradhan Mantri Jan-Dhan Yojana statistics as on 6 March 2019 (All figures

in crores)[5]

Number of Accounts
Number
Bank Type Balance in Accounts of RuPay C
Rura Urba Fema ards
Total
l n le

Public Sector Banks 15.09 12.80 27.89 14.68 ₹75,028.71 22.83

Regional Rural
4.94 0.94 5.88 3.26 ₹16,055.81 3.75
Banks

Private Banks 0.63 0.47 1.10 0.59 ₹2,482.67 1.02

₹93,567.18 crore(US$13 
Total 20.66 14.22 34.87 18.53 27.60
billion)

As informed by banks, as on 28.2.2018, 31.20 crore accounts have been opened under
Pradhan Mantri Jan-Dhan Yojana (PMJDY) with aggregate deposit balances Rs.
75,572.09 crore. Of these, 25.18 crore (81%) Jan-Dhan accounts are operative. Banks
are committed to enhance the number of operative Jan-Dhan accounts. Public Sector
Banks (PSBs) have reported that no such incidence has been observed presently.
Moreover, Jan-Dhan accounts do not have any requirement of maintaining minimum
balance.Public Sector Banks have reported that by February 2018 only about 59 lakh
(1.9%) Jan–Dhan accounts have been closed since launch of the scheme. Jan–Dhan
accounts are closed as per request of the account-holder. Some of the Jan-Dhan
accounts are closed due to conversion of Jan-Dhan accounts into normal savings
account as per request of the account-holder. In some cases accounts are closed due to
account-holder having multiple accounts in his/her name in the same bank, as per

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Reserve Bank of India guidelines dated 10.8.2012 applicable to Basic Savings Bank
Deposit (BSBD) accounts including Jan-Dhan accounts.This was stated by Shri Shiv
Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya
Sabha.

1.4 PERFORMANCE

Due to the preparations done in the run-up, as mentioned above, on the

inauguration day, 1.5 Crore (15 million) bank accounts were opened. The Prime
Minister said on this occasion- "Let us celebrate today as the day of financial
freedom." By September 2014, 3.02 crore accounts were opened under the scheme,
amongst Public sector banks, SBI h lakh (3 million) accounts, followed by Punjab
National Bank with 20.24 lakh (2 million) accounts, Canara Bank 16.21 lakh (1.62
million) accounts, Central Bank of India 15.98 lakh (1.59 million) accounts and Bank
of Baroda with 14.22 lakh (1.42 million) accounts.On 20 January 2015, the scheme
entered into Guinness book of world records setting new record for 'The most bank
accounts opened in one week'.[10] The balance in Jan Dhan accounts rose by more
than ₹270 billion (US$3.8 billion) between 9 November 2016 and 23 November
2016.[11] 19 lakh householders have availed the overdraft facility of ₹2.56 billion
(US$36 million) by May 2016.
Uttar Pradesh and West Bengal have got 29% of the total deposits under the
scheme whereas Kerala and Goa became the first states in the country to provide one
basic bank account to every household. The total number of account holders stood at
294.8 million, including 176.1 million account holders from rural and semi-urban
branches. A total of 227 million RuPay cards have been issued by National Payments
Corporation of India (NPCI) till August 2017. The amount of deposits rose to ₹656.97
billion (US$9.1 billion) by August 2017.

According to an analysis of various studies, "Beyond enabling account

ownership and the use of financial services, the PMJDY also facilitated financial
inclusion for a variety of demographics. While the programmer has made significant
headway towards genuine financial inclusion, it is clear that improving policy
communication, widening and deepening progress in low-income states, and ironing
out the kinks in the bank-agent model will be crucial if these hard-fought gains are to

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prove sustainable." At least 30 crore new families have got Jan Dhan accounts in
which almost Rs 65,000 crore have been deposited, Prime Minister Narendra Modi
said on 28 August 2017, on the eve of third anniversary of the scheme aimed at
financial inclusion.

That the number of bank accounts opened under the Pradhan Mantri Jan Dhan
Yojana (PMJDY) is over 295 million—of these, 176 million are in rural areas—is no
mean achievement. Equally impressive is the fact that over Rs 74,600 crore was deposited
by the government into the accounts of beneficiaries as subsidies for cooking gas or
payments for MNGREGS or scholarships in FY17. Given subsidies comprised around 44%
of the fiscal deficit in FY17, such direct benefit transfers (DBT) not only reduced the large
theft levels associated with subsidy expenditure, it also facilitates the move to a market-
pricing mechanism across product—subsidies have only distorted the market, whether for
grain, fertilizer or kerosene, and DBT will ensure products are sold at market prices.

Given this, it is unfortunate that little progress has been made in distributing food
subsidies via the DBT mechanism. As FE has reported today, even after two years of
prodding by the Centre and a couple of pilot projects, states remain reluctant to even
experiment with the DBT model in a district or in a block. This is despite the fact that more
than 230 million ration cards have been digitized and 180 million or a good 80% of these
have been seeded with Aadhaar. States may have their own reasons for not initiating a DBT
transfer; they may not want to shut down the local corporations that buy and distribute
grain, given it is a source of livelihood. However, now that 70% of beneficiaries are
buying their supplies from the ration shops after their fingerprints are authenticated
against the Aadhaar database, it is surprising the Centre isn’t switching to DBT.
Given 810 million people have to get 5 kg per month of wheat/rice under the Food
Security Act, and the subsidy is around Rs 22 per kg, this means the Centre needs to
spend Rs 107,000 crore versus the Rs 145,000 crore it spends right now under the FCI-
ration-shop system.

Once food subsidies are disbursed through PMJDY accounts, banks may find these
accounts to be a less of a drag on their business since the balance should rise from the

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current average of Rs 2,231. According to data provided State Bank of India,approximately
three-fourths of the lender’s financial inclusion accounts have a positive balance. And while
it could be years before many of the account-holders are able to get a loan, coming into the
formal banking system itself should help them access credit from other formal sources such
as a microfinance institution or a small finance bank (SFB). Given how quickly banks have
been able to open the non-frills accounts that are linked with Aadaar numbers, the
government’s target of seeding a billion bank accounts with Aadhaar and linking these to
a billion mobile numbers—doesn’t seem ambitious.

Besides access, emphasis is also placed on affordability (low cost) of financial

services such as savings, loan, and remittance to the underprivileged segments of the
population. Although the term ‘financial inclusion’ was not in vogue in India then,
since the late 1960s both the Government and the Reserve Bank have been concerned
about the non-availability of banking facilities to the under-privileged and weaker
sections of the society. Accordingly, several initiatives have been taken over time
such as nationalization of banks, prescription of priority sector targets, lending to
weaker sections at concessional rates, and initiation of the lead bank scheme. These
initiatives were undertaken at different points in time to expand the outreach of
banking facilities and increase the flow of credit to the rural areas. However, the
broad approach towards financial inclusion followed in India in the 1970s and the
1980s was more oriented towards credit requirements of specific sectors/segments and
there was relatively low emphasis on individual/household level inclusion.

The Indian financial system essentially catered to the needs of planned

development in a mixed-economy framework, where the Government sector had a
predominant role in economic activity. The focus of banking policy during the 1990s
and up to the early 2000s was more on creating a strong and efficient banking system.
However, once the financial health of the banking system was restored, focused
attention was again paid towards promotion of financial inclusion.

The efforts to include the financially excluded segments of the society in India
are not new. In the campaign (Swabhimaan) launched in the year 2011 by

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Government of India, about 74,000 villages with population more than 2,000 (as per
2001 census) were covered with banking facilities.

The earlier campaign however was limited in its approach in terms of reach
and coverage. Convergence of various aspects of comprehensive Financial Inclusion
like opening of bank accounts, access to digital money, availing of micro credit,
insurance and pension was lacking. The campaign focused only on the supply side by
providing banking facility in villages of population greater than 2000 but the entire
geography was not targeted. There was no focus on the households. Also some
technology issues hampered further scalability of the campaign. Consequently the
desired benefits could not be achieved and a large number of bank accounts remained
dormant.

List of Participating Banks: The banks which are participating in the PMJDY
and partnering the nation in its efforts for greater financial inclusion are:
Table : List of all banks participating in PMJDY

1.5CRITICISM

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 The scheme has been criticized by opposition as an effort to please voters that
has created unnecessary work-burden on the public-sector banks. It has been claimed
that the poor deserve food more than bank accounts and financial security. Further,
these accounts have not yet added considerable profits to PSU banks. According to
the experts, offers like zero balance, free insurance and overdraft facility would result
in duplication. Many individuals who already have bank accounts may have had
accounts created for themselves, lured by the insurance covers and overdraft
facilities. As per the scheme, a very few people are eligible to get the life insurance
worth ₹30,000 (US$420) with a validity of just five years. The claimed overdraft
facility has been completely left upon the banks. As per the government notice, only
those people would get the overdraft facility whose transaction record has satisfactory
operations in their account for some time.

In addition, while the Indian Government was actively attempting to promote

financial inclusion through this scheme, the Reserve Bank of India, permitted banks to
charge customers for conducting ATM transactions beyond a certain number of times
per month. This effectively prevented people from easily accessing their own savings
and discouraged them from using formal banking channels.

It was estimated by government that huge amount of black money has been
converted into white through Jan Dhan accounts after demonetisation.However, this
move was condenmed by all opposition parties and even faced backlash from people. 

Lending — more specifically money lending as an economic practice has

existed for centuries. First, wearing the banner of barter, then under the tutelage of
mercantilists and pawnbrokers, and today, in the hands of modern banks, credit-
card companies, mortgage lenders and the like. With such evolution, credit
became a necessity but wasn’t accessible, available or affordable to everyone.
Primarily, the penurious and destitute were systematically excluded from this
phenomenon.

India was no exception to the practice of debarring certain classes of society

from the credit system. However, the Pradhan Mantri Jan Dhan Yojana (PMJDY)
stepped in to change that. PMJDY, the Prime Minister’s People Money
Scheme, has arguably been a game-changer, accelerating the process of financial
inclusion. By February 2017, less than three years since its inception, over 270

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million bank accounts were opened and almost Rs.665 billion ($10 billion) was
deposited under the scheme. PMJDY isn’t the first financial inclusion programmer to
be implemented, but it is the first of its kind to gain substantial traction. This begs the
question: what is so unique and conspicuous about PMJDY, and why was it able to
achieve the considerable footing it has?

The thought behind PMJDY, i.e. ensuring access to financial services, is not in
itself a new idea; financial integration has consistently been on the government’s
agenda. To meet this end, Regional Rural Banks (1975), National Bank for
Agriculture and Rural Development, NABARD (1982), Chit Funds (1982), and
Narasimham I & II Committees (1990s) each had a laudable role to play. Inter
alia,greater autonomy was given to public-sector banks; Non-Performing Assets
(NPAs) were targeted; foreign banks were allowed to enter the domestic market; and
the Reserve Bank of India introduced a monetary policy tool, Liquidity Adjustment
Facility (LAF), to encourage banks to borrow money via repurchase agreements. The
formal financial sector swelled and cheap credit avenues were instituted. This growth,
however, was like building a skyscraper without an elevator, and several remained in
the informal sector.

It was 2005 when the term ‘financial inclusion’ was first used in the Indian
context by then Governor of the RBI, Y. Venugopal Reddy, in the Annual Policy
Statement. He fervently voiced alarm on the exclusion of vast sections of society from
the formal financial system.

Taking this concern forward, the Report of the Internal Group to Examine
Issues relating to Rural Credit and Microfinance (Khan Committee), urged banks to
develop a basic, ‘no-frills’ account with relaxed norms and elbow room to avail
banking facilities. These efforts, albeit commendable, were implemented in phases
(programmers were almost mutually exclusive of each other) and concentrated in
specific pockets (only a few sections of the population benefited from the
schemes).

PMJDY appears to be built on simplistic norms with blanket utilisation. Its

appeal is uncomplicated access to financial services (like Banking, Savings & Deposit
Accounts, Remittance, Credit, Insurance, Pension) for anyone, rural or urban, who
wishes to access them. The absence of this categorisation smoothens the

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dissemination and implementation of the programme. Some distinctive provisions
include no minimum balance requirement for bank accounts, an accident insurance
cover of Rs.1 lakh ($1,500), banking services on non-smartphones (which were
previously only available on smartphones), grievance-redressal mechanisms, and
active State/District-level monitoring. These mechanisms make it easy for anyone to
open a bank account and engage in financial services.

Further, PMJDY promotes differential banking, allowing new entrants to

innovate without the legacy constraints older banks might face. It was envisioned that
PMJDY would account for social-security errors, alleviate the problem of asymmetric
information via cashless payments, and tackle black money (as evident through
Modi’s debate-worthy demonetisation of large currency notes).

The scheme has, so far, managed to open 21.43 crore accounts, which have
mobilised Rs 35,672 crore deposists. Of this, about 9.5 crore accounts have been
linked to Aadhaar numbers and 17.75 crore RuPay debit cards have been achieved
issued to these account holders. The numbers indeed signify a remarkable
achievement, since in the fiscal year prior to the launch of Jan Dhan, India opened just
about 6 crore basic service bank accounts (equivalent to the Jan Dhan accounts).

But, India’s push on financial push has begun well in the past. A report by
British High Commission and Neeti Foundation shows that between 2011 and 2014
the banking account penetration increased in India from 35 percent to 53 percent of
population — a period when the UPA was in power.

1.6 SCHEME DETAIL

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 Prime Minister Narendra Modi's flagship programme, the Pradhan Mantri Jan-
Dhan Yojana (PMJDY), which completed three years in August last year and
was credited by Finance Minister Arun Jaitley for unleashing the "JAM" --
Jan Dhan, Aadhaar, Mobile -- revolution, is set to receive an extension
in Budget 2018, which is just days away. The financial inclusion scheme could
also reportedly see the overdraft amount sanctioned under it double as the
government looks to use it to promote entrepreneurship by providing bank
loans.

A senior government official told financial daily The Economic

Times that during Budget 2018, an announcement on PMJDY being extended is
expected. The unnamed official added that an increase in the overdraft amount
under the scheme could also be on the cards. Stating that the government was
looking to "build upon" the scheme, the official told the financial daily that it
was also going to "bundle other financial products" under PMJDY, which will
see its second phase end in August.

Currently, under PMJDY, one account, preferably belonging to a

woman, in every household can avail of an overdraft of Rs 5,000 once the
account has been satisfactorily operated for six months. According to the
financial daily, this amount could be doubled to Rs 10,000 in order to allow
access to easy emergency funds. The above-mentioned government official told
the financial daily that such a move was "being discussed" and the overdraft
amount could be "doubled" for those accounts that are "receiving direct benefit
transfer through one or more schemes".

Originally envisioned for providing financial inclusion to all Indian

citizens by ensuring that at least one person from every household possesses a
bank account, the PMJDY scheme is also being seen by the government as a
vehicle for promoting entrepreneurship. According to the financial daily, the
government plans to push lenders to provide entrepreneurship a boost using the
good operative accounts.

Modi's flagship financial inclusion scheme:

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 The stated objective of the ambitious scheme is to bring society's excluded
sections under the formal financial system's umbrella.

As of October last year, close to 300 million (30 crore) people had opened
accounts under the scheme, which was launched in 2014 by PM Modi. At
present, according to the latest data available on the PMJDY site, 309.7 million
(30.97 crore) beneficiaries have banked under the scheme, the beneficiary
accounts hold a balance of Rs 736.90 billion (73,689.72 crore), and 126,000
(1.26 lakh) Bank Mitras are delivering branch-less banking services in sub-
service areas.

As of August last year, 60 per cent of the accounts opened under the scheme
belonged to people living in rural and semi-urban areas.However, the scheme
was only one part of the government's strategy to ensure financial inclusion.
Subsequently, the government also brought in other financial products, such as
life insurance. Another initiative launched by the government in this regard is
Mudra, which aims to provide credit to micro enterprises.

As of August last year, gross enrolment under the Pradhan Mantri Jeevan Jyoti
Bima Yojana and the Pradhan Mantri Suraksha Bima Yojana had hit 34 million
and 109 million, respectively.

Last year, Finance Minster Jaitley praised the PMJDY scheme, crediting it

with ushering in the "JAM", or Jan Dhan, Aadhaar and Mobile, revolution.

JAM, according to Jaitley, was nothing short of a social revolution as it has

brought together biometric identification (Aadhaar), financial inclusion
(PMJDY), and mobile telecommunications.

As of September last year, according to Jaitley, zero balance accounts under the
PMJDY have come down to 20 per cent from 77 per cent in three years.

1.7 BENEFICIARY OF PMJDY

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1.7.1 Zero Balance Account : The accounts opened under PMJDY scheme

are zero balance account that means initially an account holder does not

need to maintain any bank balance. Under this scheme anyone who is a

citizen of India above 10 years and does not have a bank account, can

open the account with zero balance.

1.7.2 Direct Benefit Transfer: It is an another valuable feature of PMJDY

,under this scheme those bank accounts which are linked to Aadhar Ids

can avail government subsidies by electronic transfer directly into their

accounts. For e.g. Gas and Food subsidies.

1.7.3 Loan Benefits : The account holder can take the benefit of loan of Rs.

5000. Provision of overdraft up to ` 5,000/- is projected to have a multi

dimensional benefits like, this exigency fund shall be a great support for

poor borrower in meeting out their basic needs like health, farming etc.

Provision of up to 5,000/- as overdraft is provided after 6 months of

satisfactory operation / saving / credit history (it is a credit and not

grant). Overdraft facility up to Rs.5000/- is available in only one

account per household, preferably lady of the household.

1.7.4 Mobile banking facilities: PMJDY scheme provides mobile banking

facility through which the account holders can avail the facility of

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 checking and transferring the balances of their accounts through a

normal cell phone which is more affordable to the target group and

general economy.

1.7.5 Micro-Insurance under PMJDY : The scheme focuses on providing

micro insurance to the people Insurance Regulatory and Development
Authority (IRDA) has created a special category of insurance policies
called micro-insurance policies to promote insurance coverage among
economically vulnerable sections of society. A micro-insurance policy
can be a general or life insurance policy with a sum assured of ` 50,000
or less. A general micro-insurance product could be
(i) Health insurance contract and
(ii) Any contract covering belongings such as Hut, Livestock, Tools
or instruments or any personal accident contract. These can be
on an individual or group basis.

1.8 GROWTH AND ACHIEVEMENT

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 1. The scheme is really beneficial for the rural population where
banking services and other financial institution are rarely available.
2. Accounts can be opened with zero balance in any bank branch or
through Business Correspondent (Bank Mitra) outlet, specially
designed for the purpose of opening the accounts under this scheme.
3. The Rupay debit cards which are invented, created and developed
wholly and solely by Indian technology, is an indigenous domestic
debit card introduced by National Payment Corporation of India
(NPCI). It can be used by the account holder at all ATMs for cash
withdrawal and at most of the retail outlets for making transactions of
purchase.
4. 4. If a person has already a bank account and it is not attached to
PMJDY scheme then there is no need to apply again, the account
holder just need to get a Rupay card and can get themselves enrolled
into the system.
5. The scheme also provides benefits to person’s who does not have
any official documents, as the bank can still open up their account
with just his/ her photo and signature and that account shall be called
as “small accounts”. Although there are some restrictions imposed by
RBI, such as accounts have a limitations regarding the aggregate
credits (not more than Rupees one lac in a year), aggregate
withdrawals (nor more than Rupees ten thousand in a month) and
balance in the accounts (not more than Rupees fifty thousand at any
point of time). These accounts would be valid normally for a period
of twelve months.
6. In the formal launch of this scheme, the Prime Minister personally
mailed to Chairmans of all PSU banks to gear up for the gigantic task
of enrolling over 7.5 crore (75 million) households and to open their
accounts. In this email he categorically declared that a bank account
for each household was a "national priority".

Due to the preparations done in the run-up, as mentioned above, on the

inauguration day, 1.5 Crore (15 million) bank accounts were opened. The Prime

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Minister said on this occasion- "Let us celebrate today as the day of financial
freedom." By September 2014, 3.02 crore accounts were opened under
the scheme, amongst Public sector banks, SBI had opened 30 lakh (3 million)
accounts, followed by Punjab National Bank with 20.24 lakh (2 million) accounts,
Canara Bank 16.21 lakh (1.62 million)accounts,Central Bank of India 15.98 lakh
(1.59 million) accounts and Bank of Baroda with 14.22 lakh(1.42 million) accounts. It
was reported that total of 7 Crore (70 million) bank accounts have been opened with
deposits totaling more than 5000 crore Rupees (approx 1 billion USD) as of
November 6, 2014. As the government met the target, Union Finance Minister Arun
Jaitley has revised the target for opening of bank accounts under the Pradhan Mantri
Jan Dhan Yojana (PMJDY), the ambitious financial inclusion scheme launched by the
government, from 7.5 crore to 10 crore by January 26,2015. As on 7th January, 2015,
performance of Pradhan Mantri Jan Dhan Yojana is given below;

CHAPTER II

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 RESEARCH METHODOLOGY

2.1 Introduction
2.2 Conceptual frame work
2.2.1 Meaning of PMJDY
2.2.2 Research Tools
2.2.3 Types and Sources of Data
2.2.4 Data Collection Method
2.2.5 Financial Literacy
2.2.6 Credit Guarantee Fund
2.2.7 Micro Insurance
2.2.8 Pension Scheme

2.3 Significance of the study

2.4 Objectives of the Study

2.5 Hypothesis of the study

2.6 Research Methodology

2.6.1 Research Design

2.6.2 Data Collection

2.6.3 Sampling Design

2.6.4 Extent

2.6.5 Data Analysis and Interpretation

2.6.6 Scope of Data

2.7 Limitation of study

2.8 Chapter Scheme

CHAPTER II

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 RESEARCH METHODOLOGY

2.1 Introduction:

PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY) is a National Mission for

Financial Inclusion to ensure access to financial services, namely Banking Savings &
Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
This financial inclusion campaign was launched by the prime Minister NarendraModi
on 28 August, 2014. He has announced this scheme on his first independence Day
Speech on 15th August, 2014. Run by Department of Financial Services, Ministry of
Finance on the inauguration day, 1.5crore (15 Million) bank accounts were opened
under this scheme. Guinness World Records Recognizes the Achievements made
under PMJDY, Guinness World Records Certificate says “ The Most bank accounts
opened in 1 Week as a part of financial inclusion campaign is 18,096,130 and was
achieved by banks in India from 23 to 29 August, 2014”. By 10th February, 2016, over
20crores (200 Million) bank accounts were opened and Rs.323.78 billion (USS4.8
billion) were deposited under the scheme.

PMJDY is a National Mission on Financial Inclusion encompassing an integrated

approach to bring about comprehensive financial inclusion of all the households in the
country. The plan envisages universal access to banking facilities with at least one
basic banking account for every household, financial literacy, access to credit,
insurance and pension facility. In addition, the beneficiaries would get RuPay Debit
Card having inbuilt accident insurance cover of Rs.1 Lakh. The Plan also
envisagechanneling all Government.

benefits (from Centre/ State/ Local Body) to the beneficiaries accounts and pushing
the Direct Benefits Transfer (DBT) scheme of the Union Government. The
technological, issues like poor connectivity, on-line transactions will be addressed.
Mobile transactions through telecom operators and their established centres as cash
Out points are also planned to be used for Financial Inclusion Under the scheme. Also
and effort is being made to reach out to the youth of this country to participate in this
Mission Mode Programme.

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Hon’ble Prime Minister, Sh. NarendraModi on 15 August, 2014 announced
“PradhanMantri Jan-DhanYojana (PMJDY)” which is a National Mission for
Financial Inclusion. The task is gigantic and is a National Priority. This National
Mission on Financial Inclusion has an ambitious objective of covering all households
in the country with banking facilities and having a bank account for each household.
It has been emphasised by the Hon’ble PM that this is important for including people
left-out into the mainstream of the financial system. Right now, most Indian
households rely on money-lenders for credit and their savings needs.

Bank accounts for all may solve this problem. Easy access to the banking system (and
freedom from scam-artists and moneylenders) can materially lift India’s economic
prosperity. Financial accessibility as promised by the PMJDY would certainly help
generate higher saving. Amid this background, the present paper endeavours to study
the recent trends in financial inclusions in India with special reference to PMJDY.

The scheme aims to provide at least one bank account to each household across the
country, with a target of covering 75 million households by 26 January 2015.
Targeted at those who have never had a bank account in their lives, the scheme has
simplified the whole process of opening an account. The KYC (know-your customer)
rules to open a bank account have been simplified; the only document required is
either Aadhar card, voter’s identity card, driving license, PAN card, or card issue
under MGNREGA. Even if the address mentioned in the document is different from
the current residence of the applicant, a self-declaration will suffice.

For those who do not have any of above mentioned identity proofs, a small account
could be opened with a self-attested photograph alongwith signature or thumb
impression in the presence of the bank official.

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2.2 CONCEPTUAL FRAMEWORK

2.2.1 Meaning of PMJDY: Financial inclusion is initiated by RBI in year 2005

and new government has actively resumed it in August 2014. In literature
review we found that many researchers has evaluated players but awareness
related studies are not done rigorously. All the objectives and features of
new financial inclusion scheme PMJDY are striking compare to old
scheme of Swabhimaan, but unless and until the end-users would not be aware
and educated about all these schemes of financial inclusion they could
not contribute effectively.

Methods of data
collection: Both primary and secondary data has been used. A structured
questionnaire was developed for the primary data collection. However secondary data
sources have also been used to have a deep understanding of the topic. Official
websites of department of finance ministry, PMJDY website and other related papers
are used.
2.2.2 Research tools: Data collected for the study have been analyzed and
presented in tables and graphs. Statistical tools such as Simple percentage,
Mean, Standard deviation and correlation have been used.
2.2.3 Type and Sources of Data: To meet the objectives we have used both
primary and secondary data. Details of financial inclusion have been
collected using available secondary data. Various articles and websites were
visited to collect the information regarding the new scheme of financial
inclusion. Primary data has been collected to study the level of
awareness about financial inclusion schemes among rural customers and
major factors affecting them. To collect primary data we have prepared
structured questionnaire.
2.2.4 Data Collection Method: The data collection method can be classified in two
parts:
*Primary Data – In this research, primary data was collected by a
questionnaire and survey among people to find out the awareness level about
PMJDY.
*Secondary Data - Information that already existed was collected in the
study from the authorized website of PMJDY and other literature available.

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2.2.5 Financial Literacy : For successful implement of PMJDY awareness among
the people about the benefits of formal financial system, banks, savings,
credit, ATM centre, timely repayment of loans and other services is the key to
success. About 718 Financial Literacy Centers have been setup and 2.2 million
people have received the benefits of awareness camps, seminars and lectures
during 2012-13. Increasing number of FLCs in rural areas will play a vital role
in implementing the scheme.

2.2.6Credit Guarantee Fund : Creation of a Credit Guarantee Fund (CGF) would be

to cover the defaults in overdraft accounts. The CGF is proposed to be created
and kept under the National Credit Guarantee Trust. This fund will give a
security to banks to provide over draft credit and will bring in discipline in the
monitoring mechanism.

2.2.7 Micro Insurance : Micro insurance policy is provided under this scheme for
the coverage economically vulnerable sections of the society. This facility will
be available in the form of health insurance, personal accident, and insurance
of house, livestock, tools, machinery and instruments. The “Bank Mitra” will
be the key factor offering micro insurance policies in order to cover the rest of
the beneficiaries.

2.2.8 Pension Scheme : Pension payments under the SwavalambanYojana scheme

for workers in the unorganized sector will be paid through bank accounts by
August 201 8. It encourages them to save income on their own for their old
age.

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2.3 SIGNIFICANCE OF STUDY :

To attain the broad vision of financial inclusion in a developing country like India,
the basic pre-requisite is financial knowledge or awareness which is precisely
called ‘financial literacy’. It is an integral part of the Mission so that the
beneficiaries make best use of the financial services being made available to them.
Thus, financial literacy provides demand side support for financial inclusion.

PradhanMantri Jan DhanYojana, which has already covered the first phase of its
pursuit, has headed into its second phase with a renewed agenda to attain the
vision of financial inclusiveness. This second phase includes overdraft facilities,
micro insurance and pension schemes, which demand strategic changes in
financial literacy initiatives. An upgraded financial literacy initiative is
quintessential to achieve the broad perspective aimed in the second phase of
financial inclusion plan. The status of this mass initiative is dealt with in the
present study.

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2.4 OBJECTIVES OF THE STUDY

2.4.1. To comprehend the magnitude of participation level of financial literacy

programmes.
2.4.2. To analyse the changes in the financial literacy strategies adopted in the
second phase of the financial inclusion plan.
2.4.3. To study the impact of financial literacy programmes in terms of
activated RuPay Cards.

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2.5 HYPOTHESIS OF THE STUDY

Respondents are disagreeing with The respondents are agreeing with thethe
statement even though the statement. Since, percentage of financial percentage
of financial inclusion is inclusion is less the respondents are in more in
Ganjamdistrict dare need of the same. The respondents have given a mixed. The
respondents of Nayagarh district areresponse with respect to the strongly
disagreeing with the statement. This shows that the which shows that the
reduced impact of respondents are not too much sure money lenders are not
visible about the reduced power of local money lenders after introduction of
PMJDY scheme. The respondents are strongly The respondents are disagreeing
with the agreeing with the statement which statement that the programme is
failed to shows that the programme is able provide much needed capital for
primary to provide capital for primary income generating activities income
generating activities. The respondents are strongly The respondents are
disagreeing with the agreeing with the statement which statement that the
programme is failed to shows that the programme is able provide much needed
capital for to provide capital for various alternative income generating activities
income generating activities.

Respondents are disagreeing with In case of Nayagarh district, the the statement
that PMJDY scheme respondents are strongly disagreeing with is able to
improve the savings habit the statement. The low income level is one of them.
Low income level and the primary reasons for the same higher spending on
various household consumption expenditures are the main reasons for the same.
The respondents are disagreeing The respondents are agreeing with the with the
statement which shows statement as they have a feeling that the that even after
implementation of PMJDY scheme may bring income financial inclusion

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programme, the equality. Though, the ground reality in much needed income
equality has other district is different not been achieved.

Respondents are in favour of the Respondents of the district do not have a

statement which shows that the clear idea about the statement as a result scheme
may help to bring the self of which the response is mix confidence The
respondents are against the The respondents are in favour of the statement as the
scheme failed to statement as they have a feeling that the give much needed
capacity to programme may improve the ability to interact with the government
improve the interaction with the officials government officials. The respondents
are agreeing with The respondents are agreeing with the the statement and they
believe that statement and they believe that the this programme may help to
programme has the ability to improve the improve the interaction with the
communication between team members; group members.

The respondents are in favour of the The respondents are not in favour of the
statement which indicates that the statement which indicates that they PMJDY
scheme is able to improve respondents are yet to get the true the financial
literacy among the benefits of financial literacy programme people of the study
village. The respondents did not give any The respondents did not give any
specific response related to the response related to the statement. The statement.
The concept of social concept of social recognition may not be recognition may
not be well well understood by the respondents understood by the respondents.
The respondents are in favour of The respondents are in favour of the statement
as they are strongly statement as they are strongly agreeing agreeing with the
fact that it helps with the fact that it helps to improve the to improve the social
awareness social awareness related to various issues related to various issues.

The respondents are in favour of the The respondents are not in favour of the
statement. They acknowledge that statement as they think that the cause of the
main cause of social abuse social abuse does not necessarily related comes as a
result of lack of income. to lack of income only So, if the scheme is able to
improve the income of the respondents then it may reduce the impact of social
abuse. The respondents are in favour of the The respondents are not in favour of

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the statement as they believe that the statement as they believe that the scheme
is able to improve the skills is not able to improve the employment and
employment opportunities of opportunities addressing the skill gaps of the
people the workforce The respondents are in favour of the The respondents are
against the statement statement as they believe that the as they believe that the
scheme has no improved income through this direct impact to improve the
hygiene and scheme may help them to improve sanitation facility of the
household the sanitation and hygiene factors in the household The respondents
are not in favour of The respondents are in favour of the the statement that
increased income statement that the increased income from from PMJDY may
be sufficient for PMJDY may be sufficient to invest more children’s education
on children’s education.

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2.6 RESEARCH METHODOLOGY

2.6.1 RESEARCH DESIGN

The present study is based on secondary data, obtained from various sources such as
publications of the RBI and PMJDY mission. The level of participation was studied in
two dimensions focusing on the number of schools and skilling centres involved in
the financial literacy initiatives. Further, the participants covered through both schools

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and skilling centres were analysed using the data published by PMJDY mission in
their official website as on August 2017.

2.6.2 Data Collection

a. PRIMARY DATA
The primary data have been collecting on the basis of a questionnaires and
personal interview. The structured close and open ended questionnaires were
distributed to the respondents. The researcher approached to

 PMJDY

The customer’s questionnaire comprises of 23 questions which were

generally multiple choice questions and open ended questions.23 questions
framed in order to judge following things:

 Personal details of respondents

 Their satisfaction level towards PMJDY
 PMJDYeffects on them
 Their view about PMJDY
 Any Suggestion for PMJDY

The questionnaire to PMJDYwere generally multiple choice questions and

open ended questions. questions framed in order to judge following things:

 Details of PMJDY
 Type of PMJDY
 Marketing scheme of PMJDY
 Consumer satisfaction toward PMJDY
 Consumer perception about the PMJDY

b. SECONDARY DATA
Required Secondary data like About PMJDY in India,Info of PMJDY
Customer Satisfaction, etc., were collected from various references which are

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 already exist and have been published in various books, articles in newspaper
like The Economics Times, Journals Like Indian Journal of Applied Research,
International Journal of Business and Management, Global Journal of
Management, BT Technology Journaland lastly form the world’s biggest
library i.e. Internet.

2.6.3 SAMPLING DESIGN

This study is dependent on tangibility, reliability, responsiveness, assurance

and empathy asevaluated by customers on quality of service, so it is a causal
research design; since it reveals a cause and effect relationship.

2.6.4 EXTENT
Extent refers to geographical area where there is a scope of population. The
extent of
study is within Mumbai i.e. from Andheri to Jogeshwari

2.6.5 DATA ANALYSIS AND INTERPRETATION

Analysis is a process of breaking a complex topic or substance into smaller

parts in order to gain a better understanding of it. Each Question of the
Questionnaire was analyzed separately and was interpreted, which are
presented below.

Demographic Profile of the study area:-

71 respondents were taken into consideration out of which 57% were males
while 43% females. 69% were students, 6% belonged to the self-employed
group, 14% to the service group, 4% were housewives, 4% were business
person and 3% were others. For the unbiased study, opinion was taken from
both genders and various professionals.

Analysis of awareness and Customer’s perspective about PMJDY

Awareness was spread among people by these means:

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Most of the respondents became aware through Media advertisement i.e. 50%,
23.50% through friends and relatives, 20.60% through Banks/Financial
Institutions and remaining 5.90% through other sources.

People among total respondents who opened their bank account under
this scheme:

According to the study only 8% respondent opened their account while 92%
didn’t because most of them already owned at least one bank account.

PMJDY has helped to reduce dependency on informal sources (e.g;

money lenders etc.):

There were 14.3% respondents who disagreed, 60% agreed and 25.7% who
neither agree nor disagree to the statement.

PMJDY is effectively advertised / publicized:

19.10% strongly agreed, 48.50% of the respondents agreed, 16.20% neither

agreed nor disagreed and remaining 16.20% disagreed, this shows that 67.6%
respondents felt that the scheme was effectively publicized.

PMJDY is helpful in improving the country’s economic growth:

8.80% respondents strongly agreed, 73.50% respondents agreed, 13.20%

respondents neitheragreed nor disagreed and 4.50% respondents disagreed,
which shows that more than 80%respondents were in the favor of the
statement.

Awareness about accidental insurance worth Rs. 1,00,000 under this

scheme:

23.50% disagreed, 20.60% neither agreed nor disagreed, 41.20% agreed,

10.30% strongly agreed which shows that 51.50% respondents were aware
about accidental insurance in PMJDY.

People are aware of life insurance worth Rs. 30,000 under this scheme:

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 7.5% strongly agreed, 38.80% agreed, 23.90% neither agreed nor disagreed,
26.90% disagreed, 2.90% strongly disagreed which shows that 46.30%
respondents were aware about life insurance in PMJDY.

People’s perceptions about best utility of PMJDY:

Multiple option selection was provided in this question and 7.5% said credit
facility, 25.40% said subsidy facility, 29.90% said accidental insurance,
26.90% said life insurance, 10.40% said overdraft facility and majority of
64.20% people said saving facility is the best utility of the scheme.

2.6.6 SCOPE OF THE STUDY:

In this study the researcher has evaluated growth and performance level of
PradhanMantri Jan DhanYojana inaccelerating growth, fighting poverty by
ensuring the financial stability and contributing towards thedevelopment of
Indian economy. The findings of the study and conclusion drawn are based on
the analysis ofthe information collected by researcher through secondary data.

2.7 LIMITATIONS OF THE STUDY

Every research study has its own limitations. In primary study precautions are
taken to lower the chances of errors but that should not affect the study to a
great extent. In the present study, following limitations are identified:
• The research is based on the research variables identified from various
literatures and
exploratory research methods. So the entire scope of the research has revolved
around theseresearch variables only. The impacts ofother factors are not
included to know the impact ofthem on PMJDY.
• The study is based on primary data only. Although, utmost care has been
taken to include onlyrelevant data, still some amount of sampling error may
have crept in.
• The study has covered only two districts of Odisha. So the existing
geographic and socioeconomic conditions may not match with other parts of
the country. Therefore the conclusiondrawn can’t be generalized.

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 2.8 CHAPTERS SCHEME:
 Introduction and Research Methodology
 Review of Literature

CHAPTER III
REVIEW OF LITERATURE

3.1 INTRODUCTION
3.2 REVIEW OF LITERATURE
3.3 RESEARCH GAP

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3.1 Introduction

Review of Literature is the process of reading, analysing, evaluating, and

summarizing scholarly materials about a specific topic. It is a text written by someone
to consider the critical point of current knowledge including substantive findings, as
well as, theoretical and methodological contributions to a particular topic. Literature
reviews are secondary sources, and as such, do not report any new or original
experimental work. Also, a literature review can be interpreted as review of an
abstract accomplishment. All the review Below, provides affluent vision of the
current and potential future developments in the area of PradhanMantriDhan-Jan
Yojna of State Bank of India.

3.2 Review of Literature

Dr.Vinit Kumar (march-2015).1One of the biggest developments by the NDA

government is first social welfare Scheme i.e. “PradhanMantri Jan DhanYojana
(PMJDY)”. It is a scheme for comprehensive financial inclusion launched by the
Prime Minister of India, Mr. NarendraModi on 28 August 2014.He had announced
this scheme on his first Independence Day speech on 15 August 2014. This scheme is
based on “Sab kasath sab kavikas” i.e. inclusive growth. The main objective of this
scheme is to ensure universal access to banking facilities with at least one basic bank

1
Dr.VinitKumar (march-2015).PradhanMantri Jan DhanYojana (PMJDY): Financial
Inclusion and Inclusive Growth in India. International Journal of Scientific &
Innovative Research Studies, Vol (3),(Issue-3), issn : 2347-7660, 19-24.

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account for every household. It was reported that total of 7 Crore (70 million) bank
accounts have been opened with deposits totaling more than 5000 core Rupees
(approx 1 billion USD) as of November 6, 2014.This research paper includes financial
inclusion, inclusive growth, threats and strategy of the scheme etc.

“PradhanMantri Jan DhanYojana (PMJDY)” implemented in large scale requires

determination and attitude towards success path. Very well said, root cause is
‘financial untouchability’ to eradicate poverty. Managing a bank account and
insurance coverage does not demand the person should be educated, it only required
the basic knowledge which could be explained by anybody else. Financial Inclusion
requires sustained efforts over many years and emphasis on quality rather than
quantity should be the priority. Government should review the speed at which it is
currently targeting to achieve the goal of covering the whole India with bank
accounts. Certainly with a firm intent and infrastructural network of institutions the
dream of financial services for all can be realized in the near future. A bold step in
indeed required to withstand the heat of economic down surge and fight poverty, and
the PMJDYis definitely a good fighting mechanism to check the poverty in India.

MrunalChetanbhai Joshi &Vikram P. Rajpurohit (june-2016).2Time to time Indian

Government consistently make its efforts towards inclusion of rural customer
(investors) in organised financial system. This might not only provide handsome
amount of cash flow to boost Indian economy but it could also help the government to
facilitate rural development through offering various services like gas subsidies etc.
Thus, nomenclature of financial inclusion varies due different ruling party, but the
primary objective remains the same i.e. to flourish the bottom of the pyramid of
financial market. The current states elucidates that present government upto some
extent turn out to be successful by opening around 12.54 crore new bank account (up
to January 2015) and deposits of more than Rs. 5000 crore (up to November 2014)
through new form financial inclusion PradhanMantri Jan DhanYojana (PMJDY). But
it has been observed that still the largest part of the rural market in untouched and not
explored fully. Hence, this paper is an attempt to study about the awareness of
financial inclusion schemes among rural customer.

2
MrunalChetanbhai Joshi &Vikram P. Rajpurohit. (june-2016). Awareness of
Financial Inclusion: An Empirical Study. RESEARCH REVIEW International
Journal of Multidisciplinary, Volume-1(Issue-6), issn: 2455-3085, 1-6.

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In this study we have found that government is consistently working for the
betterment of rural customer by taking initiative through various schemes. They are
partially successful in increasing awareness about new financial inclusion plan
PMJDY compare to old Swabhimaan. But still government is not able to affect the
awareness level of rural customer about financial inclusion schemes significantly. In
this study we have found that rural customers even do not have enough exposure to
various banking services, on top they did not realize importance of various banking
services. We also studied various factors like demographic factors (age, occupation,
gender and education level), source of information etc in relation to level of
awareness of rural customer about new financial inclusion scheme, but none of the
factor found significant. However we found that the major reason for the low level of
awareness about financial inclusion schemes is lack of understanding about important
role of banking services in financial betterment. Thus, for better outcome of financial
inclusion schemes, government need to work on making rural customer aware about
importance of various banking services in improving their financial health.

Dr. Rajeshwari M. Shettar. (feb. 2016). 3PradhanMantri Jan DhanYojana, is an ambitious

scheme for comprehensive financial inclusion launched by the Honorable Prime
Minister of India, ShriNarendraModi on 28th August, 2014. He had announced this
scheme on his first Independence Day speech on 15th August, 2014. In a run up to the
formal launch of this scheme, the Prime Minister personally mailed to CEOs of all
banks to gear up for the gigantic task of enrolling over 6 crore (75 Million)
households and to open their accounts. In this email he categorically declared that a
bank account for each household was a “national priority”. The scheme has been
started with a target to provide universal access to banking facilities starting with
basic banking accounts with overdraft facility of Rs. 5,000 after six months and
RuPay Debit Card with inbuilt accident insurance cover of Rs. 1Lakh and
RuPayKisan card. An attempt has been made in this paper to study the progress made
under PradhanMantri Jan DhanYojana scheme. The study is based on secondary
sources collected from published articles, various journals, newspapers, reports,
books, and official websites of PMJDY. The paper reveals that PMJDY scheme is
fully helpful to rural and urban area people in getting directly the government
3
Dr. Rajeshwari M. Shettar. (feb. 2016).PradhanMantri Jan DhanYojana: Issues and
Challenges. IOSR Journal of Business and Management, Volume 18(Issue 2), issn:
2319-7668, 17-24.

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40
schemes. The study concludes that, PMJDY scheme has created an impressive result
in the banking sector with regard to eradication of financial untouchability in the
country. Mere opening of bank accounts may not fulfill the aim of the scheme, but
there should be continuous operation of bank accounts to give the real success of the
scheme.

The PradhanMantri Jan DhanYojana scheme has substantial growth in number of

accounts opened. In globalized scenario, it is important to financially include all
sections of the society in this scheme to achieve the goal of inclusive growth of the
nation. PMJDY is a national mission on financial inclusion which is concentrated on
individual household with an aim to provide formal financial support through the
organized financial system. Success of the PMJDY scheme depends on the effective
regulatory system as in the stakeholders have to build a sustainable ecosystem to keep
the accounts active and successful implementation of the programme. The challenge
is the conversion of the non operative accounts with zero balance into operative and
for this it’s important to focus on financial literacy programme. Inclusive growth “Sab
KaSath Sub KaVikas” is central to our development philosophy. This mission would
enable all households, urban and rural to gain easy and universal access to financial
services. Exclusion from the banking system excludes people from all benefits that
come from a modern financial system. The PMJDY scheme is fully helpful to rural
and urban area people in getting directly government financial services. This study
highlights commercial banks performance on PradhanMantri Jan DhanYojana. The
PMJDY scheme has created an impressive result in the banking sector with regard to
eradication of financial untouchability in the country. Mere opening of bankaccounts
may not fulfill the aim of the scheme, but there should be continuous operation of
bank accounts to give the real success of the scheme.

Mayur K. Joshi,(March 2016)4Hon’ble Prime Minister, Sh. NarendraModi on 15

August, 2014 announced “PradhanMantri Jan-DhanYojana (PMJDY)” which is a
National Mission for Financial Inclusion. The task is gigantic and is a National
Priority. This National Mission on Financial Inclusion has an ambitious objective of
covering all households in the country with banking facilities and having a bank
4
Mayur K. Joshi,(March 2016). PradhanMantri Jan DhanYojana (Pmjdy): A Leap
Towards Financial Inclusion in India. Indian Journal of Research Paripex, Volume :
5(Issue : 3), issn - 2250-1991, 358-359.

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41
account for each household. It has been emphasised by the Hon’ble PM that this is
important for including people left-out into the mainstream of the financial system.

Right now, most Indian households rely on money-lenders for credit and their
savings needs. Bank accounts for all may solve this problem. Easy access to the
banking system (and freedom from scam-artists and moneylenders) can materially lift
India’s economic prosperity. Financial accessibility as promised by the PMJDY
would certainly help generate higher saving. Amid this background, the present paper
endeavours to study the recent trends in financial inclusions in India with special
reference to PMJDY.

The above study shows that the yojna launched by PradhanMantri under the name
PMJDY is really mile stone in the history of Financial Inclusion and will help in
development of the country and help in inclusive growth of the nation. And Banks all
over the country are making efforts to make this scheme successful. Above study
shows that till 09th September 2015 under PMJDY 60% accounts opened in rural
area, out of total accounts more than 78% accounts opened by public sector banks,
total 18.17 crores account opened which is more than 298% than 2013- 2014, but still
lot of efforts have to be done to made this yojana completely effective. The scheme
can be a “waste” if it leads to duplication of accounts, if no transaction happens on the
new accounts and if the new users get bad experiences. In Prime Minister’s own
words “this PradhanMantri Jan-DhanYojana lies at the core of this government’s
development philosophy of Sab KaSath Sab KaVikas.”

SurbhiSrivastava(march 2016).5Financial inclusion is connotes to the delivery of

financial services like savings, credit, insurance, subsidies and other banking services at a
minimum costs to sections of disadvantaged and low- income segments of society, since
banks are the lifeline of the economy hence the availability of banking services to the entire
population without discrimination is the prime objective of financial inclusion. In the Indian
context, the term ‘financial inclusion’ was used for the first time in April 2005 in the Annual
Policy Statement presented by Mr. Y.VenugopalReddy,the then Governor, Reserve Bank of
India . Later on, this concept gained ground and came to be widely used in India and abroad.
While recognizing the concerns in regard to the banking practices that tend to exclude

5
SurbhiSrivastava (march 2016). An Overview of PradhanMantri Jan
DhanYojana. Indian Journal Of Research Paripex, Volume : 5(Issue : 3), issn - 2250-
1991, 317-321.

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42
rather than attract vast sections of population, banks were urged to review their existing
practices to align them with the objective of financial inclusion. The Report of the Internal
Group to Examine Issues relating to Rural Credit and Microfinance (Khan Committee) in July
2005 drew strength from this announcement by Governor Mr. Y. Venugopal Reddy in the
Annual Policy Statement for 2005-06 wherein he had expressed deep concern on the
exclusion of vast sections of the population from the formal financial system. In the Khan
Committee Report, the RBI exhorted the banks with a view to achieving greater financial
inclusion to make available a basic “no-frills” banking account. The recommendations of the
Khan Committee were incorporated into the midterm review of the policy (2005–06).
Financial inclusion again featured later in 2005 when it was used by Mr. K.C. Chakraborthy,
the chairman of Indian Bank. Mangalam became the first village in India where all
households were provided banking facilities. Norms were relaxed for people intending to
open accounts with annual deposits of less than Rs. 50,000. General credit cards (GCCs)
were issued to the poor and the disadvantaged with a view to help them access easy credit.
In January 2006, the Reserve Bank permitted commercial banks to make use of the services
of non-governmental organizations (NGOs/SHGs), micro-finance institutions, and other civil
society organizations as intermediaries for providing financial and banking services.

PradhanMantri Jan DhanYojana is one the most featuring scheme till now, the scheme
justifies itself on basic grounds which are to promote financial literacy, universal
access to banking facility and providing various financial services as well as on
promoting savings. The scheme is definitely a great help for those weaker sections of
society, who have an ability to save. It is a far sighted and long term scheme which
still needs great management in terms of banking services as Banks are the backbone
of every economy, any mismanaged government plan will make them suffer. Growth
of this scheme will help the other developmental schemes of the government of India,
for instance digital India, skill India and the union budget of 2016- 17 itself which
focuses mainly on agriculture and infrastructure. The widely acknowledged &
successful launch of this PMJDY scheme also strengthens the resolve that when
coordination, dedication, opportunism, commitment, formalization, dependence, trust,
satisfaction, cooperation and continuity is provided by all the constituents and
stakeholders, a framework of construct is created which acts as a dominant force for
accomplishment of the mission.

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43
Neha Sharma & Dr. RuchiGoyal(april, 2017).6A successful development is marked
with the establishment of a stable and useful financial system for the entire
population. Indian government implemented many initiatives since independence for
financial inclusion and recently launched PradhanMantri Jan-DhanYojana (PMJDY)
to overcome the loopholes of previous initiatives. PMJDY is major financial plan with
the objective of covering all households in the country with banking facilities along
with inbuilt insurance coverage. With this background, the study has been conducted
and tries to find out the success rate of inclusion process in rural areas of Jaipur
district. For the purpose of the study, both primary data and secondary data have been
collected. Correlation (r) test is used to find out the relationship between the socio
economic backgrounds and the financial inclusion process. Findings show that
Income, financial information from various channels and awareness of PMJDY are
influential factors leading to inclusion. Nearness to banks increases the likelihood of
inclusion.

The findings of this research are helpful in understanding the influence of variety of
factors on the access to banking services of rural households. The findings are as
follows:
A natural spin-off of high income and high education profile of respondents is their
financially included status. The significant contribution of PMJDY awareness in
linking the marginalized with the formal banking institutions is revealed. Respondents
are more likely to be financially included at closer distances from Bank. Financial
information from various sources (Bank mitr, newspaper, T.V., friends etc.) has
helped to increase inclusion. Thus banks and policy makers should work in close co-
ordination to spread financial information as those efforts are seen to directly impact
their business. Efforts from banks to spread financial information have made no
headway, as only one respondent reported to receive financial information from the
bank. In this regard we have two suggestions to offer:
1) Banks should persuade policy makers and Government to spread financial
information, as those efforts are seen to directly impact their business; and
2) Banks should also take more interest in spreading financial information. Banks are
suggested to put efforts to tap low-income households in rural areas, as they are not
6
Neha Sharma & Dr. RuchiGoyal(april, 2017). PRADHAN MANTRI JAN DHAN
YOJANA (PMJDY) - A CONCEPTUAL STUDY. International Journal of Research -
GRANTHAALAYAH, Vol.5(Iss.4), issn- 2350-0530, 143-152.

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44
just potential markets for banks, but catering to them is part of their social
responsibility as well.

ParthaSarathiSenapati (mar 2018,).7PradhanMantri Jan-DhanYojana (PMJDY) is a

National Mission for Financial Inclusion to ensure access tofinancial services,
namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance,
Pension in an affordable
manner. Since the launch of this scheme in 2014, it has created a milestone in
bringing millions to the banking services.It is a crucial scheme of Government to
achieve financial inclusion of the mass and making a progress towards
inclusivegrowth. This paper tries to study the scheme in details and its progress across
the country as well as in the state of Odisha.PMJDY program strives to achieve
complete penetration of banking services and microfinance facilities to theweak and
poor sections of the society. Though many financial inclusion schemes have been
launched before,PMJDY commands high importance due to its magnitude,
geographical reach, scale of the impact and involvement ofcritical stakeholders - i.e.
the Government, banks, and regulators. The PradhanMantri Jan DhanYojana
(PMJDY) hasyielded results and nearly 98 per cent of households in India now have
bank accounts. Till date, PMJDY has registered aremarkable performance and
continues to be the main driving force towards the goal of absolute financial
inclusion.The scheme aims at building a holistic framework by integrating the other
critical elements such as Aadhar, Direct Benefit Transfer, and Direct Benefit Transfer
for LPG. Cumulatively, these programmes are transforming India andaltering the
socio-economic landscape and achieving inclusive growth.

Dr. RakeshK(march – april 2017). 8The intent of this study is to present a clear
picture about how the PMJDY is being implemented in Andhra Pradesh and north
ParthaSarathiSenapati (mar 2018,). A STUDY OF PRADHAN MANTRI JAN
7

DHAN YOJANA (PMJDY) SCHEME IN ODISHA AND CHALLENGES OF

FINANCIAL INCLUSION. International Journal of Research in Humanities, Arts
and Literature, Vol. 6,(Issue 3,), issn (p): 2347-4564, 156-160.
Dr. Rakesh K (march – april 2017). IMPLEMENTATION OF JAN DHAN
8

YOJANA – CHALLENGES AND PROSPECTS. International Journal of

Management (IJM), Volume 8,(Issue 2,), issn online: 0976-6510, 150-160.

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45
coastal Andhra in particular so as to findout the bottlenecks the program comes to
face at the field level. While doing so thepotential threats to the implementation of
PMJDY alongside the characteristics ofpopulation in north coastal Andhra Pradesh
are to be studied in detail. Indeed
PMJDY is a program scrupulously designed to help the poor and the backward get
their share from government without intervention of any middlemen aimed at the
financial inclusion of people at the lowest rung. According to Reserve bank of India,
Financial inclusion is the process of ensuring access to financial services and timely
and adequate credit availability to the vulnerable groups such as weaker sections and
low income group at affordable cost. Planning commission (2009) further explain it as
universal access to a wide range of financial services at a reasonable cost. C
Rangarajan (2009) defined financial exclusion as restricted access to financial
services to certain segment of economy which includes individuals or family
belonging
to low income group who cannot access basic banking like bank accounts, credit.

Dr.B.C.M. Patnaik , Dr. IpsitaSatpathy,D.Litt&Avinash Chandra Supkar

(february (2015)9Most recently a national mission on financial inclusion called
“PRADHAN MANTRI JAN -DHAN YOJANA” was launched on the 28th of August
2014. Under the direct supervision of theIndian Prime Minister and the Department of
Financial Services, Ministry of Finance, the objectiveof this mission is to enroll over
70 million households and open their bank accounts along withproviding them as a
first step a RuPay debit card with a Rs. 1,00,000/- accident cover. In the duecourse of
time the plan is to also cover these account holders with insurance and pension
products.About 60% of the population in India does not have access to a bank
account. The urban populationof financially excluded category mainly comprises of
low income groups like urban labourers, slumdwellers of the cities and socially
excluded communities. Poverty as a result of absence of income orirregular income,
low education, lack of financial education, and location of financial serviceproviders
beyond close proximity make it difficult for the service providers to provide
financialservices which in turn becomes a primary reasons of financial exclusion. It is

9
Dr.B.C.M. Patnaik , Dr. IpsitaSatpathy,D.Litt&Avinash Chandra Supkar (february
(2015),). PradhanMantri Jan DhanYojna (Pmjdy) – A New Direction For
Mainstreaming The Financially Excluded. International Journal Of Management
(IJM), Volume 6,(Issue 2,), issn 0976-6510 (online), 31-42.

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46
also believed thatfinancial exclusion also leads to social inclusion. This study is
focused in the eastern region of Indiaand particularly capital region of Odisha, India
The sample population of 137 for this studycomprises of household servants,
domestic helps, migrant & local construction laborers, rickshaw /cart pullers, taxi
drivers and other contractual low income staff at different private institutions.
YogeshVerma&PriyankaGarg (january 2016)10Financial untouchability is a
phenomenon that results from certain situations that prevents people to access to
formal financial system. In absence of formal financial system people are forced to go
to local money lender who charges much interest rate from poor people. Financial
untouchability also creates the problem of social discrimination. The only solution to
fight with the evil of financial untouchability is promotion of financial inclusion
which may be defined as the process of ensuring access to financial services and
timely and adequate credit where needed by vulnerable groups such as weaker
sections and low income groups at an affordable cost (Rangarajan Committee, 2008).
Financial Inclusion can be achieved by ensuring access to financial services,
affordability of services and actual utilization of financial services.
In order to promote financial inclusion, PradhanMantri Jan DhanYojana (PMJDY) is
launched across the country. It is a mission mode project of Indian government. The
scheme aims to ensure universal access to banking facilities in each and every
household of country. The scheme has provision of opening zero balance with free
debit card and inbuilt accidental insurance. It also includes program of financial
literacy, access to credit, and insurance facility.
The present study has made an attempt to study the effectiveness of PMJDY by
finding effectiveness of financial literacy program and awareness towards PMJDY.
The study has been carried out among workers in central university of Rajasthan and
villager of Bandrasindri village in Ajmer district of Rajasthan. Data has been
collected from various primary and secondary sources. The primary data has been
gathered in the form of discussion held with respondents in 2015. The secondary data
has been collected from various published and non-published sources. The finding of
study shows that still there is a long path which needs to be covered to eradicate
financial untouchability in real sense from the country.

YogeshVerma&PriyankaGarg(january 2016). PradhanMantri Jan DhanYojana

10

(PMJDY): A Step Towards Eradicating Financial Untouchability. In Indian Journal

of Finance, Volume-1(Issue-1), 1-15.

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47
The following conclusions can be drawn from the research findings:
1) Majority of respondent have primary or basic knowledge about PMJDY.

2) Lack of money and financial illiteracy are the primary reason for financial
exclusion.

3) Government needs to ensure proper delivery of financial literacy program as nearly

all respondents have not attended any such program.

Overall, finding of the study matches the general perception that rural people have
comparatively less level of awareness on financial and banking services. Different
survey and study indicates that poverty and illiteracy level are also high in villages
which is also reflected by the under taken study. In real life situation villagers do not
feel comfortable in using various banking services like debit card, credit card and
insurance services etc. The result of study also confirms that most of the respondents
have never used banking services. It can clearly be said that the results of the under
taken study are refection of real life situation regarding financial and banking
awareness in the country.

Dr. M. D. Somani&BhavanaNahar (oct. 2015). 11The Prime Minister launched the

National Mission on financial inclusion known as PradhanMantri Jan DhanYojna on
August 28, 2014 is a landmark initiative to link the hitherto excluded poor with the
bank and a policy to help them joineconomic mainstream by removing financial
untouchability. Inclusive growth becomes impossible without financial
inclusion.Financial inclusion is the key factor for inclusive growth. The focus of
financial inclusion in India there for has overwhelmingby been on delivering credit
through microfinance channels, state owned banks and through state promoted self
helpgroups. The PMJDY has completed these efforts by the previous efforts of the
RBI of promoting financial inclusion throughfacilitating opening of bank accounts.
However, the present Indian Government has packaged it in a mission mode with abig
bang action plan which is popularly known as “PradhanMantri Jan DhanYojna”. The
scheme is a landmark initiativeto bring the poor people into economic mainstream

Dr. M. D. Somani&BhavanaNahar (oct. 2015).PradhanMantri Jan DhanYojana :

11

Financial Inclusion. Journal of Commerce & Trade, Vol. X(No. 2), issn (p) : 0973-
4503, 34-39.

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48
through linking the neglected poor strata with the banking system. Thisscheme will
help the poor to come out of the grip of money lenders, manage emerging financial
needs and get benefits froma range of financial services. The present paper endeavor
to study the recent trends in financial inclusion in India withspecial reference to
PMJDY highlights the need of financial inclusion, pillars of the PMJDY and
performance of this scheme.
The PMJDY is superior over the UPA’s financial inclusion programme because the
earlier programme had no focus on individual households Effective implementation of
Jan DhanYojna will reduce the poverty solving most of the financial problems of
people. PMJDY, a long felt-need National Mission on Financial Inclusion committed
itself for an integrated approach to bring about comprehensive financial inclusion of
all the households in the country enabling especially low income group people to get
rid of moneylenders, cultivate the habit of saving, and most importantly, benefit from
string of financial products and services offered by banking system. It not only will
eradicate poverty and curb corruption at the grass root level but at the same time
generate an employment opportunity which in turn improves the living standard of
vast section of underprivileged people leading ultimately to vicious cycle of
Economic growth. Needful modification in Rupay cards program and life cover has
made the scheme more attractive. The progress of all proposed strategies needs to be
checked on regular basis and
effectively implemented within specified time bound framework. The present PMJDY
has addressed all the existing and possible deficiencies. This programmed is in the
sense one of the poverty alleviation programme. Hence this is the mission to eradicate
poverty through the financial inclusion programme. The poor and the underprivileged
people in rural, semiurban and urban areas are expected to get all the benefits such as
financial inclusion, financial stability
and financial freedom through the PMJDY.

Dr. Alka Singh (july 2017).12With the announcement of PradhanMantri Jan

DhanYojna (PMJDY) on 28 August 2014, the currentgovernment has once again
attempted to implement Financial Inclusion in the country. This scheme isbased on

Dr. Alka Singh (july 2017). Financial Inclusion & Implementation of Jan
12

DhanYojna – Information Technology as Enabler [Abstract]. International Journal of

Scientific Research and Management (IJSRM), Volume||5||(Issue||07), issn (e): 2321-
3418, 5913-5918.

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“Sab kasath sab kavikas” i.e. inclusive growth. It has far reaching impact on the
socio-economiclives of people, as it ensures that everyone in the society gets access to
social, economic and politicalopportunities without any discrimination. This facet is
strongly linked with the concept of inclusivegrowth. Technology can play an
important role in not only reducing operating cost of providing bankingservices,
particularly in the rural and unbanked areas but also increasing the reach of the
financial sector tothe remotest areas. There are technologies that could drive the
growth in financial inclusion and withfurther development and innovation in
Information Technology it is succeeding in its desired objective

Dr. ManasNaskar&Sourav Kumar Das (november 2017).13Even after 69 years of

independence, a large section of population in India is still facing several challenges
regarding access to all financial facilities provided by the Government. Around 53.1%
of adults in India have a bank account and nearly 33.1% use ATMs to withdraw cash
from banks (Report of World Bank Group, 2015).The scenario in the rural area is very
pathetic. The Central Government and the State government have implemented
various schemes for the betterment of the Indian people from time to time. Initiatives
have been taken for implementing various plans and programmes by forming several
Commissions in the recent years.73rdConstitutional Amendment was the very
important for the Indian rural people, as major policies were taken for the
development of the rural areas. The PradhanMantri Jan DhanYojana (PMJDY) has
given the opportunity to the people to access the financial services in an affordable
manner for the purpose of financial inclusionwhere every household having at least
one basic banking account, can get universal access to formal credit, insurance cover
and pension facilities.The main aim of the study is to identify whether the plans under
PMJDY so implemented are effectively running or not particularly in the rural area.
This study is developed based on both primary and secondary data. From the study it
is revealed that a large section of the rural people is still not so much aware of this
program.

The PradhanMantri Jan DhanYojana scheme (PMJDY) has shown substantial growth
in the number of accounts opened. In this globalization era, it is important to

Dr. ManasNaskar&Sourav Kumar Das (november 2017). PradhanMantri Jan

13

DhanYojana: An empirical study in rural area. International Journal of Academic

Research and Development, Volume 2(Issue 6), issn: 2455-4197, 120-125.

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50
financially include each and every sections of the society in this scheme to achieve the
goal of inclusive growth of the nation. The PMJDY scheme is fully helpful to rural
and urban area people in getting directly government financial services [5]. But it has
been seen that this programme still have not been able to reach all the tribal
communities of the economy. So, there is a great need to create awareness among
each and every community about all the benefits of PMJDY, so that all the
households will mention PMJDY as the best programme for the economic
development of rural India. Thus, it can be suggested that,
 Local awareness programmes on regular basis should be started.
 Local representatives may take initiatives to make the people aware of this
programme.
 Advertisement on local basis through proper channels should be spread out over
the local areas.
 Banking institutions may take initiatives through different
organizations for convincing the local people.
 Banks may start a fair taking the rural people regarding the awareness of the
banking products.
 Investment awareness programmes should be started in rural areas, especially in
the rural area like the Foskadanga.
 More Rural bank branches should be opened within reachable distance of the rural
people.

Dr. HimanshuRastogi (july 2017).14 India today is one of the fastest growing
economies and is amongst the top 10 economies of the world with estimated GDP of
USD 2.1 trillion (Nomura 2014) and fourth biggest when measured in terms of
purchasing power. In spite of such a strong position on world economic map it suffers
from the problem of poverty and poor financial inclusiveness. According to 2011
census only 58.7 percent of the households have access to banking services. To take
care of this situation and to increase the financial connectivity of all households so as
to improve their economic conditions and free them from exploitative practices of
landlords and agents helping them to collect government payments the Government of

14
Dr. HimanshuRastogi (july 2017). An analysis of PradhanMantri Jan DhanYojana.
International Journal of Academic Research and Development, Volume 2(Issue 4),
issn: 2455-4197, 167-171.

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51
India on 28 August, 2014 launched PradhanMantri Jan DhanYojana (PMJDY) with a
target of opening at least one bank account to each household across the country,
covering 75 million households by 26 January 2015. It was a general opinion that
opening a bank account is not a big achievement but converting these account into
active accounts will indeed be a challenge and only time will tell to what extent the
scheme has been successful in achieving the objective of promoting financial
inclusion or will it be only be yet another scheme with huge promises but little
success. The paper focuses on analyzing the progress made by PMJDY, challenges
faced and to come up with suggestive measures in order to make this scheme a real
success, and be regarded as a premier scheme towards promoting financial inclusion.
The situation as regard to financial inclusion is concerned has started showing signs
of improvement and more so because of the successful implementation of Pradhan
Mantra Jan DhanYojna. The commitments level and firm determination on the part of
government, policymakers, banks and all those associated with the scheme, made sure
that the accounts opened under the scheme do no lay as dormant accounts but be a
legal active account, which has been a great achievement for the scheme. However
still 100 percent financial inclusion has not been achieved in true sense but by taking
care of the implementation problems, there is no doubt soon that the day will come
when we can proudly say that yes our country is financially included cent percent and
ready to govern the world as real economic power.
Ahmed Hussain (june 2015).15Hon’ble Prime Minister ShriNarendraModi
announced a new scheme PradhanMantri Jan DhanYojana (PMJDY) on August 15,
2014 and launched it as a national mission for financial inclusion on August 28, 2014
as a land mark initiatives to ensure financial inclusion for weaker section of the
society for providing banking, insurance and pension to mitigate the ill effects of
earlier schemes, thus giving them dignity, financial freedom and financial stability.
On the inauguration day, 1.5 Crore bank accounts were opened under this scheme
across the country, the largest such exercise on a single day possibly anywhere in the
world. The implication of the financial exclusion is much needed when the exclusion
mass is entrapped in the hydra headed cycles of poverty. This causes further social
exclusion which is very much detrimental for the equitable growth in any country.

Ahmed Hussain (june 2015). PradhanMantri Jan DhanYojana: The most intensive
15

Financial Inclusion scheme in India. International Journal Of Core Engineering &

Management (IJCEM), Volume 2(Issue 3), issn: 2348 9510, 254-266.

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52
Needful modification in Rupay cards program and life cover has strengthen the
scheme more Accountable and transparent organizational structure for implementing
PMJDY will be essential for achieving the desired societal outcomes which solely
depends on the execution skill of the Government.

PMJDY, a long felt-need National Mission on Financial Inclusion committed itself for
an integrated approach to bring about comprehensive financial inclusion of all the
households in the country enabling especially low income group people to get rid of
moneylenders, cultivate the habit of saving, and most importantly, benefit from string
of financial products and services offered by banking system.

 This mega scheme has attracted the mass population because the scheme proves to
the bunch of financial products and services starting with universal banking facilities
to facilities of micro finance and pension provision at a very affordable cost.

 It not only will eradicate poverty and curb corruption at the grass root level but at
the same time generate an employment opportunity which in turn improves the living
standard of vast section of underprivileged people leading ultimately to vicious cycle
of Economic growth.

 For successful implementation of this mega mission, full support is needed from
Banking and other Financial Institutions, private service providers and above all, the
responsible citizen.

 Needful modification in Rupay cards program and life cover has made the scheme
more attractive.

 The progress of all proposed strategies needs to be checked on regular basis and
effectively implemented within specified time bound framework.

 We can say that accountable and transparent organizational structure with their
predetermined contribution for implementing PMJDY will be essential for achieving
the desired societal outcomes which solely depends on the execution skill of the
Government.

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53
Mohana Krishna Irrinki&KuberuduBurlakanti (june, 2017). 16Financial inclusion
aims at delivering the financial services at an affordable cost to sections of
disadvantaged and low-income segments of society. Financial inclusion is an
innovative concept which promotes the banking habits among the financially
excluded people and enables to reduce poverty and the launch of PradhanMantri Jan
DhanYojana (PMJDY) by Government of India is in that direction. This scheme is not
confined to opening of bank account but has other advantages blended with it such as
Zero Balance bank account with RuPay debit card, Accidental Insurance cover of Rs
1 lakh, Life Insurance cover of Rs 30,000, etc. This paper is an attempt to identify the
perception of the people of ThallarevuMandal about the newly launched scheme
PradhanMantri Jan DhanYojana.

A good number of accounts are opened under the scheme but the usage is limited.
There is need to improve the transactions in these accounts which will be helpful for
the people as well as the banks.
 The financial literacy levels are very less. There is need to conduct financial
literacy programs in these areas. The usage of ATMs needs to be educated among the
people. The usage of technology needs to be improved which helps in effective
utilization of the banking services.
 The procedure to open accounts, operating the accounts, disbursement of loans
needs to be simplified. This simplification will help to remove the fear of the people
with the complex documents of the banking procedures.
 Bank staff needs to be trained on a regular basis which will help them in assisting
the people more effectively.
 Local people must be recruited as Business correspondents as they better
understand the local people. Opening of accounts, disbursement of loans, transactions
in the account and recovery of the loans will be easy for them.
 Customised products and services needs to be introduced. These people have
irregular incomes and the savings, loan repayments will also be irregular.

Mohana Krishna Irrinki&KuberuduBurlakanti(june, 2017). Perception

16

OnPradhanMantriJandhanYojana - A Study With Reference To ThallarevuMandal.

International Journal of Research - GRANTHAALAYAH, Vol.5((Iss.6), issn- 2350-
0530(o, 129-146.

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54
Mr. Divyesh Kumar & Dr. H R Venkatesha, (january 2015). 17 Financial inclusion
or inclusive financing is the delivery of financial services at affordable costs to
sections of disadvantaged and low-income segments of society, in contrast to financial
exclusion where those services are not available or affordable. An estimated 2.5
billion working-age adults globally have no access to the types of formal financial
services delivered by regulated financial institutions. Financial inclusion is an
innovative concept which enables the alternative techniques to promote the banking
habits and acts as enabler in reducing the poverty and the launch of PradhanMantri
Jan DhanYojana (PMJDY) by Government of India is in that direction. The scheme
is not only limited to opening of a bank account but has other benefits with it viz. zero
balance bank account with RuPay debit card, in addition to accidental insurance cover
of Rs 1 lakh, those who open accounts by January 26, 2015 over and above the Rs 1
lakh accident, they will be given life insurance cover of Rs 30,000, etc. This paper is
an attempt to discuss the overview of financial inclusion using PMJDY in India
One of the greatest steps ever taken to eradicate poverty is financial inclusion through
PMJDY. For the success of any scheme constant review and regular check is very
much essential. Successful implementation would not only reduce poverty but also
puts a check on corruption. A bold first step by NDA Government indeed helped
many to come into the main stream of economy and reduce financial untouchability.

M. SWATHI &Dr.D. VEZHAVENTHAN (2018).18India is a well developing

country at the same time there are lots of problems were occurred in India, among
those housing is also one. Housing is an important component of human resource
development. In India the problem of housing is dreadful .There are lots of legislation
in India which help the people to improve their standard of living. The ministry of
rural development in India deals with the rural development and takes care of the rural
needs. The main objective of this research to analysed the development of housing in
rural areas and also the implementation process of PradhanMantriAwasYojana.This
research is based on analytical and descriptive method. In this research the researcher
17
Mr. Divyesh Kumar &Dr. H R Venkatesha, (january 2015). FINANCIAL
INCLUSION USING PRADHAN MANTRI JAN-DHAN YOJANA - A
CONCEPTUAL STUDY. Indian Journal of Research, Volume-1(Issue-1), 1-12.
18
M. SWATHI &Dr.D. VEZHAVENTHAN (2018). A STUDY ON THE HOUSING
IN RURAL AREAS WITH SPECIAL REFERENCE TO PRADHAN MANTRI
AWAS YOJANA (PMAY-G). International Journal of Pure and Applied
Mathematics, Volume 120(No. 5), issn: 1314-3395, 87-99.

Page
55
also analysed in what way the Indian government builds houses in rural areas with the
PradhanMantriAwasYojana( PMAYG) and also found PradhanMantriAwasYojana
(PMAY-G) was very helpful to people who were in rural areas suffering from
homelessness. In this research the researcher analysed that the government mainly
focused on rural areas and after the implementation of this scheme many rural areas in
Tamilnadu have been developed well economically. The researcher also concludes
that there is a significant changes in housing development after the implementation of
this scheme and this was properly implemented in India thus the current study proves
its alternative hypothesis that there is significant changes in housing developing in
rural areas.
The government has now focusing on providing housing for rural areas based on the
scheme of PradhanMantriAwasYojana (PMAY-G)19. This scheme provided housing
for the rural areas .After the implementation of this scheme many rural areas in Tamil
Nadu have developed well economically.There are significant changes about housing
development in rural areas through the proper implementation of
PradhanMantriAwasYojana. Hence alternative
hypothesis proved.
Dr. Manjula. R. Iyer&Kripa Jose (september 2017). 19Financial Literacy is an
important adjunct that drives the PradhanMantri Jan DhanYojna (PMJDY) mission
towards its goal to attain financial inclusion. Though the financial literacy initiatives
in the first stage have spearheaded in opening a large number of basic bank accounts,
the continuity in maintaining operational accounts is still not a reality. The present
study attempts to measure the extent of the participation through financial literacy
camps and to analyse the changes in the strategies adopted. The effectiveness of the
initiatives was also measured in terms of RuPay card activation. The study is based on
secondary data, followed by an empirical analysis to draw a conclusion. Around 19.3
lakhs school students and 2.7 lakhs skilling school students were covered in the
second phase. The strategies for the financial literacy have also undergone a massive
change in this phase with respect to the structure of course, the materials and tools
used in knowledge dissemination, reporting mechanism of financial literacy
coordinators and use of media. The level of active cards was ascertained at 44%,
Dr. Manjula. R. Iyer&Kripa Jose (september 2017). Financial Literacy in the Second
19

Trajectory Phase of Financial Inclusion Plan under PradhanMantri Jan DhanYojana

(PMJDY). International Journal of Advance Research in Computer Science and
Management Studies, Volume 5(Issue 9), issn: 2321-7782, 22-28.

Page
56
which is attributed to ‘resistance to change’ attitude of the elderly population and
minimal scope for use of financial products by students. The focused initiatives in the
second phase have fuelled the mission, though the current status is not fully
satisfactory, the major results are expected to show in the near future as the
programmers are aimed at the student population who are tomorrow’s decision
makers.

Financial literacy being an important pillar of the PMJDY mission, has undergone a
tremendous change in its second phase. Prior to the second phase, there was lack of
focus in the initiatives carried out and the strategies proved to be ineffective.
Nevertheless, the second phase focused on covering remaining adults in the
households and students. Thus, the strategies were formulated to reach out to the
schools and skilling centres like Industrial Training Institutes (ITI’s), Vocational
Training Providers (VTP’s), Operational Centres (OC’s). Around 19.3 lakh school
students and 2.7 lakh skilling school students were covered, which is fuel for the
mission. The strategies for the financial literacy have also undergone massive change
in the second phase with respect to the structure of course, the materials and tools
used in knowledge dissemination, reporting mechanism of the financial literacy
coordinators and use of media as a source to reach out to the commons through radio
and television shows. The effectiveness of the initiatives was measured using one
parameter that is in terms of RuPay card activation. However, the level of active cards
is only 44%, which questions the effectiveness of the initiatives. The ‘resistance to
change’ attitude of the elderly population and minimal scope for the use of financial
products by students has resulted in the low level of card activation. The focused
initiatives in the second phase have boosted the mission. Though the current status is
not fully satisfactory, the major results are expected to show in the near future, as the
programmes are aimed at the student population, who are the tomorrow’s decision
makers.

Sri Lakshmi and D.Mamatha&Dr.Ponniah V M, (o c t o b e r 2014). 20Even after

60 years of independence, a large section of Indian population still remains unbanked.

Sri Lakshmi and D.Mamatha&Dr.Ponniah V M, (o c t o b e r 2014).A STUDY ON

20

PRADHAN MANTRI JAN DHAN YOJANA – WITH REFERENCE TO

NATIONALIZED BANK (BANK OF BARODA). S A M Z O D H A N A– “ J O U
RNaLOFJOURNaLOFMaNaGEMENTMaNaGEMENTRESE
a R C H ”, V o l3(I s s u e 1), i s s n2347-4270, 227-236.

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57
In the recent years the government and Reserve Bank of India has been pushing the
concept and idea of financial inclusion. The Financial Inclusion Plan aims at
providingeasy access to financial services to those sections of the society who are
deprived of it so far at affordable cost thereby bringing them into the mainstream
financial sector.RBI set up theKhan Commission in 2004 to look into financial
inclusion and the recommendations of thecommission were incorporated into the mid-
term review of the policy (2005–06) and urged banks to review their existing
practices to align them with the objective of financial inclusion. Honourable Prime
Minister of India, Sri NarendraModi announced this scheme for comprehensive
financial inclusion on his first Independence Day speech on 15 August 2014. The
scheme was formally launched on 28 August 2014 with a target to provide 'universal
access to banking facilities' starting with Basic Banking Accounts with overdraft
facility of Rs.5000 after six months and RuPay Debit card with inbuilt accident
insurance cover of Rs. 1 lakh and RuPayKisan Card & in next phase, micro insurance
& pension etc. will also be added. An attempt is made in this paper to study and cover
the followingAn overview of Financial Inclusion. Bank of Baroda’s performance with
reference to Financial Inclusion.Latest trends being implemented for Financial
Inclusion by PMJDY.

3.3 Research Gap

From the below 20Articles Title
1. Financial Inclusion and Inclusive Growth in India
2. Awareness of Financial Inclusion: An Empirical Study.
3. PradhanMantri Jan DhanYojana: Issues and Challenges.

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58
 4. A Leap Towards Financial Inclusion in India.
5. An Overview of PradhanMantri Jan DhanYojana.
6. PradhanMantri Jan DhanYojana (Pmjdy) - A Conceptual Study.
7. A Study OfPradhanMantri Jan DhanYojana (Pmjdy) Scheme In Odisha And
Challenges Of Financial Inclusion.
8. Implementation Of Jan DhanYojana – Challenges And Prospects.
9. PradhanMantri Jan DhanYojna (Pmjdy) – A New Direction For
Mainstreaming The Financially Excluded.
10. PradhanMantri Jan DhanYojana (PMJDY): A Step Towards Eradicating
Financial Untouchability.
11. PradhanMantri Jan DhanYojana : Financial Inclusion.
12. Financial Inclusion & Implementation of Jan DhanYojna – Information
Technology as Enabler.
13. PradhanMantri Jan DhanYojana: An empirical study in rural area.
14. An analysis of Pradhan Mantri Jan DhanYojana.
15. PradhanMantri Jan DhanYojana: The most intensive Financial Inclusion
scheme in India.
16. Perception On Pradhan Mantri Jan dhan Yojana - A Study With Reference To
ThallarevuMandal.
17. Financial Inclusion Using PradhanMantri Jan-DhanYojana - A Conceptual
Study.
18. A Study On The Housing In Rural Areas With Special Reference To
PradhanMantriAwasYojana (Pmay-G).
19. Financial Literacy in the Second Trajectory Phase of Financial Inclusion Plan
under PradhanMantri Jan DhanYojana (PMJDY).
20. A Study On Pradhan Mantri Jan Dhan Yojana – With Reference To
Nationalized Bank (Bank Of Baroda).

CHAPTER IV

DATA ANALYSES AND INTERPRETATION

4.1 INTRODUCTION
Data collection, analysis and interpretation of results are the critical and core
section in the research process. The aim of analysis is to organize, classify and to

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59
summarize the data that has been collected, such that they can be comprehended and
interpreted to give the solutions to the queries that triggered the research.

Without interpretation, analysis of findings is not fulfilled and interpretation

cannot be preceded without analysis. Both are directly correlated. In this chapter,
based on the objectives stated earlier, a detailed analysis of data collection has been
done. Hypothesis was tested based on the findings of the study, interpretation and the
conclusions were drawn.

4.2 AGE
TABLE NO 4.2
AGE

AGE NO.OF RESPONDENT % OF RESPONDENT

20-30 13 26%
31-50 25 50%

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60
 50-70 12 24%
TOTAL 50 100%
Source: compiled of Questionnaire

Graph No 4.2

Age

60%

50%
50%
Percentage of Respondance

40%

30%
26%
24%

20%

10%

0%
20-30 31-50 50-70
Age

The above Table & Graph No 4.2 The majority of the Respondent are from the age
group of 31-50 Years i.e. 25 Respondent (50%). 26 Percent are from 20-30 years i.e.
13 respondent and 24 percent are from 50-70 year i.e. 12 respondent.

Hence the majority of the respondents are from age group of 31-50 years. i.e. 25
respondents (50%)

4.3 Gender
Table No 4.3

Gender

Gender No. of Respondent % of Respondent

Male 28 56%
Female 22 44%

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61
 Others 0 0
Total 50 100%
Source: compiled of Questionnaire

Graph No 4.3

Gender
60%
56%

50%
44%
Percentage Of Respondent

40%

30%

20%

10%

0%
0%
Male Female Others
Gender

The above Table & Graph No 4.3 The majority of the Respondent are from Male i.e.
28 Respondent Percent (56%). 44 percent are Female i.e. 22 respondent and 0 percent
are from others i.e. 0 respondents.

Hence the majority of the respondents are Male i.e. 28 Respondent (56%)

4.4 Marital Status

Table No 4.4
Marital Status

Marital Status No. of Respondent % of Respondent

Married 33 66%
Unmarried 15 30%

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62
 Divorced 2 4%
Widow 0 0%
Total 50 100%
Source: compiled of Questionnaire

Graph No 4.4
Marital Status

70% 66%

60%

50%
Perecnatge of Respondent

40%

30%
30%

20%

10%
4%
0%
0%
Married Unmarried Divorced Widow
Marital Status

The above Table & Graph No 4.4 The majority of the Respondent are from Married
i.e. 33 Respondent (66%). 30 Percent are from Unmarried i.e. 15 Respondent. 4
percent are from Divorced i.e. 2 Respondent and 0 percent are from widow i.e. 0
Respondent.

Hence the majority of the respondents are from Married i.e. 33 Respondent (66%).

4.5 Education
Table No 4.5
Education

Education No. of Respondent % of respondent

SSC 8 16%
HSC 15 30%

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63
 Graduate & Post Graduate 15 30%
Uneducated 12 24%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.5
Education

35%

30% 30%
30%

25% 24%
Percentage of Respondent

20%
16%
15%

10%

5%

0%
SSC HSC Graduate & Post Graduate Uneducated
Education

The above Table & Graph No 4.5 The majority of the Respondent are from HSC And
Graduate & Post Graduate Group. i.e. 15 Respondent (30%) from both group.
Whereas 16 percent are from SSC Group i.e. 8 Respondent and 24 Percent are from
Uneducated Group i.e. 12 Respondents.

Hence, the majority of the Respondents are from HSC And Graduate & Post Graduate
Group i.e. 15 Respondent (30%) from both group.

4.6 INCOME SOURCE

Table no 4.6
Income Source

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64
 Income source No. of Respondent % Of Respondent
Self Employed 13 26%
Salaried 37 74%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.6
Income Source

80%
74%
70%

60%
Percentage of Respondent

50%

40%

30% 26%

20%

10%

0%
Self Employed Salaried
Income Source

The Above Table & Graph No 4.6 The majority of the Respondents are from Salaried
Group i.e. 37 Respondents (74%). 26 Percent are from Self Employed Group i.e. 13
Respondents.

Hence, the majority of the respondents are from Salaried Group i.e. 37 Respondents
(74%)

4.7 Monthly Income

Table No 4.7
Monthly Income

Monthly Income No. of Respondent % of Respondent

0 -10 K 20 40%

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65
 10-40K 22 44%
40k-Above 8 16%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.7
Monthly Income

50%
45% 44%
40%
40%
Percentage Of Respondent

35%

30%
25%
20%
16%
15%
10%

5%
0%
0 -10 K 10-40K 40k-Above
Monthly Income

The Above Table & Graph No 4.7 The majority of the Respondents are from the 10-
40K Group i.e. 22 Respondents (44%). 40 Percent are from 0-10K Group i.e. 20
Respondent and 16 Percent are from 40K and above Group i.e. 8 Respondent.

Hence, the majority of the respondents are from 10-40K Group i.e. 22 Respondents
(44%).

4.8 Do you know what is PMJDY?

Table No 4.8
Do you know what PMJDY is?

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66
 Do you know what No. Of Respondent % of Respondent
PMJDY is?

Yes 35 70%
NO 15 30%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.8
Do you know what PMJDY is?

0.8
70%
0.7

0.6
Percentage of Respondent

0.5

0.4
30%
0.3

0.2

0.1

0
Yes NO
Do you know what PMJDY is?

The Above Table & Graph No 4.8 The majority respondent is YES i.e. 35
Respondent (70%) and 30 Percent is NO i.e. 15 Respondent.

Hence, the majority of the respondents are YES i.e. 35 Respondent (70%)

4.9 Are you Aware of benefits of PMJDY Scheme?

Table No 4.9
Are you Aware of benefits of PMJDY Scheme?

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67
 Are you Aware of No. Of Respondent % of Respondent
benefits of PMJDY
Scheme?
Yes 38 76%
No 12 24%
Total 50 100%
Source: compiled of Questionnaire

Graph No 4.9
Are you Aware of benefits of PMJDY Scheme?

80% 76%

70%

60%
Percenatge of Respondent

50%

40%

30%
24%
20%

10%

0%
Yes No
Are you Aware of Benefits of PMJDY Scheme?

The Above Table & Graph No 4.9 The majority of the Respondent are Yes i.e. 38
Respondent (76%) and 24 Percent are NO i.e. 12 respondent.

Hence, The Majority of the respondents are YES i.e. 38 Respondent (76%)

4.10 PMJDY was launched on which of the following data?

Table No 4.10
PMJDY was launched on which of the following data?

PMJDY was launched on No. of Respondent % of Respondent

which of the following
data?

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68
 14th May, 2012 7 14%
15th Aug, 2014 37 74%
26th Aug, 2018 3 6%
02nd Oct, 2010 3 6%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.10
PMJDY was launched on which of the following data?

80%
74%
70%

60%
Percenatge of Respondent

50%

40%

30%

20%
14%
10% 6% 6%

0%
14th May, 2012 15th Aug, 2014 26th Aug, 2018 02nd Oct, 2010
PMJDY was launched on which of the following data?

The Above Table & Graph No 4.10 The Majority of the Respondents is 15Th
Aug,2014i.e. 37 Respondent(74%). 14 Percent is 14th May, 2012 i.e.7 Respondent. 6
Percent is 26th Aug, 2018 and 02nd Oct, 2010 i.e. 3 Respondent for Both.

Hence, the majority respondents is for 15th Aug, 2014 i.e. 37 Respondent(74%).

4.11 Which banks have the authority to open an A/C under PMJDY
Scheme?
Table No 4.11
Which banks have the authority to open an A/C under PMJDY Scheme?

Which banks have the No. Of Respondent % of Respondent

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69
 authority to open an A/C
under PMJDY
Scheme?
Private Banks 8 16%
Public Banks 10 20%
Co-Operative Banks 2 4%
All Banks 30 60%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.11
Which banks have the authority to open an A/C under PMJDY Scheme?

70%

60%
60%

50%
Percentage of Respondent

40%

30%

20%
20% 16%

10%
4%
0%
Private Banks Public Banks Co-Operative Banks All Banks
Which banks have the Authority to open an A/C under PMJDY Scheme?

The Above Table & Graph No 4.11 The majority of the respondent are for ALL
BANKS i.e. 30 Respondent (60%). 20 Percent are for Public Bank i.e. 10
Respondent. 16 Percent are for Private Banks i.e. 8 Respondent and 4 Percent are for
Co-Operative Banks i.e. 2 Respondent.

Hence, the majority Respondents re for ALL BANKS i.e. 30 Respondent (60%).

4.12 Have you opened bank A/C under PMJDY?

Table No 4.12

Have you opened bank A/C under PMJDY?

Have you opened bank No. Of Respondent % of Respondent

A/C under PMJDY?

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70
 Yes 38 76%
No 12 24%
Total 50 100%
Source: compiled of Questionnaire

Graph No 4.12

Have you opened bank A/C under PMJDY?

0.8 76%

0.7

0.6
Percentage of Respondent

0.5

0.4

0.3
24%
0.2

0.1

0
Yes No
Have you Opened bank A/C Under PMJDY?

The Above Table & Graph No 4.12 the majority respondent is for YES i.e. 38
Respondent (76%). And 24 Percent is for NO i.e. 12 Respondent.

Hence, the majority respondents is for Yes i.e. 38 Respondent (76%)

4.13 In which bank have you opened your account?

Table No 4.13
In which bank have you opened your account?

In which bank have you No. Of Respondent % of Respondent

opened your account?

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71
 Public Sector Bank 20 40%
Private Sector Bank 17 34%
None 13 26%
Not Yet 0 0%
Total 50 100
Source: compiled of Questionnaire
Graph No 4.13
In which bank have you opened your account?

45%
40%
40%

35% 34%
Percentage of Respondent

30%
26%
25%

20%

15%

10%

5%
0%
0%
Public Sector Bank Private Sector Bank None Not Yet
In which bank have you opened your A/C?

The Above Table & Graph No 4.13 the majority of the respondent are from Public
Sector Bank i.e. 20 Respondent (40%). 34 Percent are from the Private Sector Bank
i.e. 17 Respondent. 26 Percent are for None i.e. 13 respondent and 0 Percent are for
Not Yet i.e. 0 respondent.

Hence, the majority of the respondents are from Public Sector Bank i.e. 20
Respondent (40%).

4.14 Do you know about facilities of PMJDY?

Table No 4.14
Do you know about facilities of PMJDY?

Do you know about No. Of Respondent % of Respondent

facilities of PMJDY?

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72
 Yes 40 80%
No 10 20%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.14
Do you know about facilities of PMJDY?

90%
80%
80%

70%
Percentage of Respondent

60%

50%

40%

30%
20%
20%

10%

0%
Yes No
Do you know about facilities of PMJDY?

The above Table & Graph No 4.14 The majority respondent are for YES i.e. 40
Respondent (80%) and 20 Percent respondent are for NO i.e. 10 Respondent.

Hence, the majority respondents are for YES i.e. 40 Respondent (80%).

4.15 What facilities of PMJDY you like most?

Table No 4.15
What facilities of PMJDY you like most?

What facilities of No. Of Respondent % of Respondent

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73
 PMJDY you like most?
Overdraft Facility 7 14%
Insurance Facility 13 26%
Rupay Debit Card 7 14%
Zero Balance 23 46%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.15
What facilities of PMJDY you like most?

50%
46%
45%
40%
Percenatge of Respondent

35%

30%
26%
25%

20%

15% 14% 14%

10%

5%

0%
Overdraft Facility Insurance Facility Rupay Debit Card Zero Balance
What facilities of PMJDY you like most?

The Above Table & Graph No 4.15 The Majority respondent are for Zero Balance
i.e.23 Respondent (46%). 26 Percent respondent are for Insurance Facility i.e. 13
Respondent and 14 Percent respondent are for Overdraft Facility and Rupay Debit
Card. i.e. 7 Respondent for both.

Hence, The Majority respondent are for Zero Balance i.e.23 Respondent (46%).

4.16 Is it better than SWABHIMAN POLICY of UPA Government?

Table No 4.16
Is it better than SWABHIMAN POLICY of UPA Government?

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74
 Is it better than No. Of Respondent % of Respondent
SWABHIMAN POLICY
of UPA Government?

Yes 43 86%
No 7 14%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.16
Is it better than SWABHIMAN POLICY of UPA Government?

1
0.9 86%
0.8
Percentage of Respondent

0.7

0.6

0.5

0.4

0.3
0.2 14%
0.1

0
Yes No
Is it better than SWABHIMAN POLICY of UPA Government?

The Above Table & Graph No 4.16 The Majority Respondent are for YES i.e. 43
Respondent (86%) And 14 Percent are for NO i.e. 7 Respondent.

Hence, The Majority Respondent are for YES i.e. 43 Respondent (86%).

4.17 From Your Family how many opened A/C under PMJDY?
Table No 4.17
From Your Family how many opened A/C under PMJDY?

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75
 From Your Family how No. Of Respondent % of Respondent
many opened A/C under
PMJDY?

One 5 10%
Two 22 44%
More than Two 13 26%
None 10 20%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.17
From Your Family how many opened A/C under PMJDY?

0.5
0.45 44%

0.4
Percentage of Respondent

0.35

0.3
26%
0.25
20%
0.2
0.15
10%
0.1
0.05

0
One Two More than Two None
From Your Family how many opened A/C under PMJDY?

The Above Table & Graph No 4.17 The Majority respondents are for TWO i.e. 22
respondent (44%). 26 Percent are for More than Two i.e. 13 respondent. 20 Percent
are for None i.e. 10 Respondent and 10 Percent are for one i.e. 5 respondents.

Hence, The Majority respondents are for TWO i.e. 22 respondent (44%).

4.18 Is it helpful to develop your saving habits?

Table No 4.18
Is it helpful to develop your saving habits?

Is it helpful to develop No. Of Respondent % of Respondent

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76
 your saving habits?
Yes 40 80%
No 10 20%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.18
Is it helpful to develop your saving habits?

90%
80%
80%

70%
Percentage of Respondent

60%

50%

40%

30%
20%
20%

10%

0%
Yes No
Is it helpful to develop your saving habits?

The above Table & Graph no 4.18 the majority respondents are YES i.e.40
respondent (80%) and 20 percent are for NO i.e. 10 respondent.

Hence, the majority respondents are YES i.e.40 respondent (80%)

4.19 How often do you transact with Bank?

Table No 4.19
How often do you transact with Bank?

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77
 How often do you No. Of Respondent % of Respondent
transact with Bank?
Fortnightly 0 0%
Weekly 3 6%
Monthly 47 94%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.19
How often do you transact with Bank?

1 94%
0.9

0.8
Percentage of Respondent

0.7

0.6

0.5
0.4

0.3
0.2

0.1 6%
0%
0
Fortnightly Weekly Monthly
How often do you transact with Bank?

The above Table & Graph no 4.19 the majority respondent are for monthly i.e. 47
respondent (94%) .6 percent respondent are for weekly i.e. 3 respondent and 0 percent
respondent are for fortnightly i.e. 0 respondent.

Hence, the majority respondent are for monthly i.e. 47 respondent (94%)

4.20 Do you maintain Minimum Cash in You’re A/c or there is zero?

Table No 4.20
Do you maintain Minimum Cash in You’re A/c or there is zero?

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 Do you maintain No. Of Respondent % of Respondent
Minimum Cash in
You’re A/c or there is
zero?
Yes 40 80%
No 10 20%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.20
Do you maintain Minimum Cash in You’re A/c or there is zero?

90%
80%
80%

70%
Percentage of Respondent

60%

50%

40%

30%
20%
20%

10%

0%
Yes No
Do you maintain Minimum Cash in You’re A/c or there is zero?

The above Table & Graph no 4.20 the majority respondents are YES i.e.40
respondent (80%) and 20 percent are for NO i.e. 10 respondent.

Hence, the majority respondents are YES i.e.40 respondent (80%)

4.21 Which State has achieved 100% success in implementing the

PMJDY?
Table No 4.21

Which State has achieved 100% success in implementing the PMJDY?

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 Which State has achieved No. Of Respondent % of Respondent
100% success in
implementing the
PMJDY?
Meghalaya 37 74%
Punjab 5 10%
Kerala 5 10%
Not Known 3 6%
Total 50 100%
Source: compiled of Questionnaire

Graph No 4.21

Which State has achieved 100% success in implementing the PMJDY?

80%
74%
70%

60%
Percentage of Respondent

50%

40%

30%

20%
10% 10%
10% 6%

0%
Meghalaya Punjab Kerala Not Known
Which State has achieved 100% success in implementing the PMJDY?

The above Table & Graph no 4.21 the majority respondents are for meghalaya i.e.37
respondent (74%) and 10 percent are for punjab and kerala i.e. 5 respondent for
both and 6 percent are for not known i.e. 3 respondent.

Hence, the majority respondents are for meghalaya i.e.37 respondent (74%)

4.22 How did you come to know about PMJDY?

Table No 4.22
How did you come to know about PMJDY?

How did you come to No. Of Respondent % of Respondent

know about PMJDY?

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 Friends & Relative 23 46%
Media Advertisement 20 40%
Bank Financial Institute 7 14%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.22
How did you come to know about PMJDY?

50%
46%
45%
40%
40%
Percentage of Respondent

35%
30%
25%

20%
15% 14%

10%
5%

0%
Friends & Relative Media Advertisement Bank Financial Institute
How did you come to know about PMJDY?

The above Table & Graph no 4.22 the majority respondents are Friends & Relative
i.e.23 respondent (46%) and 40 percent are for Media Advertisement i.e. 20
respondent and 14 percent are for Bank Financial Institute i.e. 7 respondent

Hence, the majority respondents are Friends & Relative i.e.23 respondent (46%)

4.23 Were all the benefits adequately and timely provided to you?
Table No 4.23
Were all the benefits adequately and timely provided to you?

Were all the benefits No. Of Respondent % of Respondent

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 adequately and timely
provided to you?
Yes 38 76%
No 12 24%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.23
Were all the benefits adequately and timely provided to you?

80% 76%

70%

60%
Percentage of Respondent

50%

40%

30%
24%
20%

10%

0%
Yes No
Were all the benefits adequately and timely provided to you?

The above Table & Graph no 4.23 the majority respondents are YES i.e.38
respondent (76%) and 24 percent are for NO i.e. 12 respondent.

Hence, the majority respondents are YES i.e.38 respondent (76%)

4.24 How successful is the PMJDY Scheme?

Table No 4.24
How successful is the PMJDY Scheme?

How successful is the No. Of Respondent % of Respondent

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 PMJDY Scheme?
Successful 40 80%
Neutrally Successful 5 10%
Not a Success 5 10%
Total 50 100%
Source: compiled of Questionnaire
Graph No 4.24
How successful is the PMJDY Scheme?

90%
80%
80%

70%
Percentage of Respondent

60%

50%

40%

30%

20%
10% 10%
10%

0%
Successful Neutrally Successful Not a Success
How successful is the PMJDY Scheme?

The above Table & Graph no 4.24 the majority respondents are successful i.e.40
respondent (80%) and 10 percent are for Neutrally Successful and Not a Success i.e.
5 respondent for both .

Hence, the majority respondents are successful i.e.40 respondent (80%).

4.25 Do you feel PMJDY are needed for your growth?

Table No 4.25

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 Do you feel PMJDY are needed for your growth?

Do you feel PMJDY are No. Of Respondent % of Respondent

needed for your growth?
Very Useful 35 70%
Somewhat useful 13 26%
Not Very Useful 2 4%
Total 50 100
Source: compiled of Questionnaire
Graph No 4.25
Do you feel PMJDY are needed for your growth?

80%
70%
70%

60%
Percentage of Respondent

50%

40%

30% 26%

20%

10%
4%
0%
Very Useful Somewhat useful Not Very Useful
Do you feel PMJDY are needed for your growth?

The above Table & Graph no 4.25 the majority respondents are for Very Useful
i.e.35respondent (70%) and 26 percent are for Somewhat useful i.e. 13 respondent
and 4 percent are for Not Very Useful i.e. 2 respondent for both .

Hence, the majority respondents are for Very Useful i.e.35respondent (70%)

CHAPTER V
CONCLUSION

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5.1 INTRODUCTION
The conclusion is intended to help the reader understand why your research should
matter to them after they have finished reading a paper. A conclusion is not merely a
summary of the main topics covered or a re-statement of your research problem, but a
synthesis of key points and, if applicable, where you recommend new areas for future
research. For most college-level research papers, one or two well-developed
paragraphs may be required.

5.2 Findings
1. The majority of the respondents are from age group of 31-50 years. i.e. 25
respondents (50%).
2. The majority of the respondents are Male i.e. 28 Respondent (56%)
3. The majority of the respondents are from Married i.e. 33 Respondent (66%).
4. The majority of the Respondents are from HSC And Graduate & Post
Graduate Group i.e. 15 Respondent (30%) from both group
5. The majority of the respondents are from Salaried Group i.e. 37 Respondents
(74%).
6. The majority of the respondents are from 10-40K Group i.e. 22 Respondents
(44%).
7. The majority of the respondents are YES i.e. 35 Respondent (70%)
8. The Majority of the respondents are YES i.e. 38 Respondent (76%)
9. The majority respondents is for 15th Aug, 2014 i.e. 37 Respondent(74%).
10. The majority Respondents re for ALL BANKS i.e. 30 Respondent (60%).
11. The majority respondents is for Yes i.e. 38 Respondent (76%)
12. The majority of the respondents are from Public Sector Bank i.e. 20
Respondent (40%).
13. The majority respondents are for YES i.e. 40 Respondent (80%).
14. The Majority respondent are for Zero Balance i.e.23 Respondent (46%).
15. The Majority Respondent are for YES i.e. 43 Respondent (86%).
16. The Majority respondents are for TWO i.e. 22 respondent (44%).
17. The majority respondents are YES i.e.40 respondent (80%)
18.The majority respondent are for monthly i.e. 47 respondent (94%)
19. The majority respondents are YES i.e.40 respondent (80%)
20. The majority respondents are for Meghalaya i.e.37 respondent (74%)

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 21. The majority respondents are Friends & Relative i.e.23 respondent (46%)
22. The majority respondents are YES i.e.38 respondent (76%)
23. The majority respondents are successful i.e.40 respondent (80%).
24. The majority respondents are for Very Useful i.e.35respondent (70%)

5.3 Objective wise Conclusion

Objective Conclusion
To comprehend the magnitude of Table no. and Graph no. 4.2, 4.3, 4.4, 4.5,
participation level of financial literacy 4.6, 4.7.
programmes. In the profile of PMJDY Scheme
majority of the respondent belongs from
-the age group of 31-50 years which are
more of male group who are mostly
married which are H.S.C and Graduate &
post Graduate and belong from Salaried
group having income source of 10-40k
To analyse the changes in the financial Table no. and Graph no.4.8, 4.9, 4.10,
literacy strategies adopted in the second 4.11, 4.12, 4.13, and 4.14.
phase of the financial inclusion plan. In this paragraph it is been explained
about the awareness of PMJDY Scheme
And how many respondents have respond
to this scheme.
Table no. and Graph no 4.9 describe the
benefits about the scheme which show
that 76% i.e. 38 respondent are aware
about this scheme.
Whereas, Table no. and Graph no 4.13
describe that the 40% i.e.20 respondent
have opened bank account under this
scheme with public sector bank.
To study the impact of financial literacy Table no. and Graph no 4.15, 4.16, 4.17,
programmes in terms of activated RuPay 4.18, 4.19, 4.20, 4.21, 4.22, 4.23, 4.24,
Cards. and 4.25.
In this Paragraph it is been explained
about the facilities, No. of Member
opened A/C under this scheme and
whether it is useful for savings and how
successful this scheme is.
Table no. and Graph no 4.18 describe
that 80% i.e.40 respondent find this
scheme is used for savings.

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5.4 Hypothesis wise Conclusion
PMJDY Scheme are usually used for saving
and bring the banking system in the more of
the society
PMJDY scheme are been known by the most
of the users and are aware about the facilities
provided to them.
SWABHIMAN POLICY is it better then
PMJDY scheme
Family Members Opened A/C Under this
Scheme or Not
How Many Users have opened their bank
A/c under zero balance
Which State have been successfully
implemented under this PMJDY Scheme?
Knowing about PMJDY Scheme
5.5 CONCLUSION
The government has now focusing on providing housing for rural areas based
on the scheme of Pradhan Mantri Awas Yojana (PMAY-G)19. This scheme provided
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Table No & Graph No 4.8 shows the
majority of the respondent with 70%
i.e. 35 Respondent which describes
that they are aware about the PMJDY
scheme.
Table No & Graph No 4.9, 4.14, 4.15
This of the following show that
76%i.e. 38 respondent are aware
about this scheme. Whereas,4.14,
shows that 80% i.e. 40 respondent are
aware about the facilities of PMJDY
Scheme. And Facilities provided by
PMJDY of Zero Balance are been
Mostly like showing that 46% i.e. 23
respondent liked the zero balance
facility the most.
Table No & Graph No 4.16 shows the
majority of the respondents saying
YES it is better. Which describe as
86% i.e.43 respondent find it better
then the SWABHIMAN POLICY
Table No & Graph No 4.17 shows
that most of the Family Group in their
family at least TWO of them have
opened A/C under this Scheme.
Described as 44% i.e. 22 Respondent.
Table No & Graph No 4.20 show the
majority of the respondent 80% i.e.40
respondent have opened their bank a/c
under Zero Balance Scheme
Table No & Graph No 4.21 shows the
majority of the respondent for
Meghalaya State which is with 74%
i.e.37 Respondent
Table No & Graph No 4.22 show the
majority of the respondent for Friends
& Relative which is with 46 % i.e. 23
Respondent came to know from their
friends & relative.
housing for the rural areas .After the implementation of this scheme many rural areas
in Tamil Nadu have developed well economically. There are significant changes
about housing development in rural areas through the proper implementation of
Pradhan Mantri Awas Yojana. Hence alternative hypothesis proved.
Financial literacy being an important pillar of the PMJDY mission, has
undergone a tremendous change in its second phase. Prior to the second phase, there
was lack of focus in the initiatives carried out and the strategies proved to be
ineffective. Nevertheless, the second phase focused on covering remaining adults in
the households and students. Thus, the strategies were formulated to reach out to the
schools and skilling centres like Industrial Training Institutes (ITI’s), Vocational
Training Providers (VTP’s), Operational Centres (OC’s). Around 19.3 lakh school
students and 2.7 lakh skilling school students were covered, which is fuel for the
mission. The strategies for the financial literacy have also undergone massive change
in the second phase with respect to the structure of course, the materials and tools
used in knowledge dissemination, reporting mechanism of the financial literacy
coordinators and use of media as a source to reach out to the commons through radio
and television shows. The effectiveness of the initiatives was measured using one
parameter that is in terms of RuPay card activation. However, the level of active cards
is only 44%, which questions the effectiveness of the initiatives.

The following conclusions can be drawn from the research findings:

1) Majority of respondent have primary or basic knowledge about PMJDY.

2) Lack of money and financial illiteracy are the primary reason for financial
exclusion.

3) Government needs to ensure proper delivery of financial literacy program as nearly

all respondents have not attended any such program.

Overall, finding of the study matches the general perception that rural people
have comparatively less level of awareness on financial and banking services.
Different survey and study indicates that poverty and illiteracy level are also high in

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villages which is also reflected by the under taken study. In real life situation villagers
do not feel comfortable in using various banking services like debit card, credit card
and insurance services etc. The result of study also confirms that most of the
respondents have never used banking services. It can clearly be said that the results of
the under taken study are refection of real life situation regarding financial and
banking awareness in the country.
The Pradhan Mantri Jan Dhan Yojana scheme has substantial growth in
number of accounts opened. In globalized scenario, it is important to financially
include all sections of the society in this scheme to achieve the goal of inclusive
growth of the nation. PMJDY is a national mission on financial inclusion which is
concentrated on individual household with an aim to provide formal financial support
through the organized financial system. Success of the PMJDY scheme depends on
the effective regulatory system as in the stakeholders have to build a sustainable
ecosystem to keep the accounts active and successful implementation of the
programme. The challenge is the conversion of the non operative accounts with zero
balance into operative and for this it’s important to focus on financial literacy
programme. Inclusive growth “Sab Ka Sath Sub Ka Vikas” is central to our
development philosophy. This mission would enable all households, urban and rural
to gain easy and universal access to financial services. Exclusion from the banking
system excludes people from all benefits that come from a modern financial system.
The PMJDY scheme is fully helpful to rural and urban area people in getting directly
government financial services. This study highlights commercial banks performance
on Pradhan Mantri Jan Dhan Yojana. The PMJDY scheme has created an impressive
result in the banking sector with regard to eradication of financial untouchability in
the country.

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