INTERNATIONAL CONFERENCE

JNNCE-SHIVAMOGGA
DATE 17/01/2020
Topic
A STUDY ON FINANCIAL INCLUSION (New Initiative) SCHEMES in
India-Progress, Issues and Challenges
Presentation By
Mr. Gururaja S (Research Scholar)
Asst. Professor
Government First Grade College-Tarikere
and
Dr. H.H. Ramesha
Associate Professor, MBA Dept.
VTU-CPGS, VIAT Muddenahalli
Chikkaballapur Dist. 562101 Bangalore Region
 
Contents of Presentation What we study?

1. Introduction
2. Research Gap (Literature Review)
3. Objectives
4. Research methodology
5. Progress of Financial Schemes
6. Issues and challenges of the Financial Schemes
7. Findings
8. Suggestion and Conclusion
REFERENCES
1.1 INTRODUCTION INTRODUCTION
• Financial inclusion
• that individuals and business have access to useful and affordable financial products and
services that meet their needs-transactions, payments, savings, credit and insurance-
delivered in a responsible and sustainable way. (world bank)

• World Bank and IFC has committed to enabling 1 billion people to gain financial access.
• - World bank group’s focus on Universal Financial Access 2020 (UFA 2020) initiative
1.2 Literature Review and RESEARCH GAP IDENTIFIED

• Upasand Sharma (2019) -------initiatives undertaken by RBI in India in regard to financial inclusion
and also the recent trend and progress of financial inclusion in Indian banking sector..
• Mohammed Irshad M and Mohammed Shahid (2019) -------the opportunities provided to low
income group to access banking products and services and focus on the challenges & opportunities of
financial inclusion in India.
• Dr. Gomathy Thyagarajan and Prof. Jyoti Nair (2016) --- Government, RBI and banks have adopted
various policy measures and innovative tools to ensure access of financial products and services to
weaker and under privileged sections of the society.
• Mr. Nanjbhai D Ranpair (2015) ----- -financial inclusion and evaluate progress and current status of
financial inclusion of the Gujarat state.
• Sonu Garg and Dr. Parul Agarwal (2014) ----the financial inclusion in India. The aim of the paper was
to study initiatives and the approaches adopted by various banks for achievements of those schemes
1.2 Literature Review and RESEARCH GAP IDENTIFIED

narrow and limited scope and coverage

Only one or few schemes

• Majority of the study has done on the topics financial inclusion, only
few on all the schemes.
• Those who have done the research mainly on the current year and not
from inception
• Thus, to fill the gap on this the study under the title A STUDY ON FINANCIAL INCLUSION (New
Initiative) SCHEMES in India-Progress, Issues and Challenges
1.3 OBJECTIVES OF THE STUDY

1.To study the current status/progress of Newly Initiative

Financial Inclusion schemes.

2. To understand the issues and challenges of the schemes.

1.4 RESEARCH METHODOLOGY

Research methodology has 3 dimensions

• Data collection -------Secondary data such as( Progress reports published on the
Government websites, articles and magazines.)

• The study is analytical in nature and

• Analysis of data using tables and graphs.

 1.5 Progress Report of the Scheme (as on 12.12.2019)
Sukanya Samridhi Account Scheme -----2015 with the aim of
1. Pradhan Mantri Jan Dhan Yojana in the year 2014. build the saving habit at the parents of a girl children, build the
(marked in Guinness Book of World Record) fund for the future education and marriage expenses of their
daughter and women empowerment step.
• Focus: Basic Savings Bank Accounts for weaker
and needy section • Offers and Benefits: Very attractive interest rates, nominal
amount to save (Minimum Rs.250 per year) and tax benefits.
•  Offers and benefits are
• Focus: Saving account for a girl for her future expenses for
• Basic Savings Bank Deposit (BSBD)
education and marriage.
• RuPay debit card ,
• Insurance
• and overdraft.
Amount deposited under SSA (Rs. In Crores)
RuPay
Bank No. of Accounts Balance in A/c (Rs in Crores)
Cards
20000
Public Sector Banks 15000
29.78 24.62 84346.94
17660.66
10000
Regional Rural Bank
6.39 3.86 19448.25 5576.16 7316.6
5000
Private Banks
1.25 1.16 3051.43 0
01.04.2015 01.04.2016 01.04.2017
to 31.03.2016 to 31.03.2017 to 31.12.2018
Total
37.42 29.65 106846.62

Source: https://pmjdy.gov.in/statewise-statistics
Source: http://www.nsiindia.gov.in
 1.5Progress Report of the Scheme ( As on 12.12.2019)
3.Pradhan Mantri MUDRA Yojana (PMMY)-launched on April 8, 2015 for providing loans up to 10 lakh to the
non-corporate, non-farm small/micro enterprises. MUDRA has created three products namely 'Shishu', 'Kishore'
and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit /
entrepreneur

Focus: Faster loan facility for informal sector

No of accounts   Amount disbursed (Rs. In Crores)
2018-
Category 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 19
Shishu 3,24,02,000 3,64,00,098 4,26,69,795 5,15,07,438 62,028 85,100.75 1,04,228.05 139651.55
Kishore 20,69,000 26,63,000 46,53,874 66,06,009 41,073 53,545.14 83,197.09 99868.00
Tarun 4,10,000 5,40,000 8,06,924 17,56,871 29,854 41,882.66 59,012.25 72291.84
TOTAL 3,48,81,000 3,96,03,098 4,81,30,593 59870318 1,32,955 1,80,528.55 2,46,437.39 3,11,811.39
Out of the above
Women 79.00% 73.40% 69.72% 61.90%
New
entrepreneurs 36.00% 25.16% 26.09% 22.37%
SC/ST/OBC 53.00% 56.67% 54.48% 46.99%

Source: http://www.mudra.org.in
 1.5Progress Report of the Scheme ( As on 12.12.2019)
4. Atal Pension Yojana (APY), a pension scheme 5. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
focused on the unorganized sector workers. A life insurance scheme launched by GOI is available to
guaranteed minimum pension of Rs. 1,000/- or people in the age group of 18 to 50 years.
2,000/- or 3,000/- or 4,000 or 5,000/- per month
will be given at the age of 60 years depending on The life cover of Rs. 2 lakhs are for the one-year period.
the contributions by the subscribers. The premium is Rs. 330 per annum.
• Focus: Life Insurance scheme
.Focus: pension scheme for unorganized sector.
  No. of Contribution amount
Subscribers in Rs (Crore) Balance in A/c (Rs in Crores) Cumulative Total Claims disbursed
in lakhs gross Registered
enrolment claims
2015-16
24.60 506.34 84346.94 Amount deposited under SSA (Rs. In Crores)
2016-17
19448.25 5.91 crore 145763 135212
49.60 NA 
2017-18
110.00 3950 3051.43
2018-19
149.53 6860 106846.62
Source: http://www.financialservices.gov.in
Source: http://www.financialservices.gov.in
 1.5Progress Report of the Scheme ( As on 12.12.2019)
6. Pradhan Mantri Suraksha Bima Yojana • 7.Stand Up India Scheme-to encourage entrepreneurship,
(PMSBY)--available to people in the age group 18 to
support the backward community and empower the woman,
70 years. The risk coverage -Rs. 2 lakhs for accidental
the GOI launched 5th April, 2016.
death and full disability and Rs. 1 lakh for partial
disability. • The Scheme facilitates bank loans between Rs.10 lakh and
Rs.1 crore to at least one SC/ST borrower and at least one-
The nominal premium of Rs.12 per annum.
Woman borrower per bank branch for setting up greenfield
Focus: General Insurance scheme enterprises.
.
Cumulative gross Total Registered Claims disbursed • Focus: Faster loan facility to backward
enrolment claims community
  Total Accounts Total sanctioned
(Rs. In Crores)
15.47 crore 40,749 32,176 (Percentage)
Women 59,429 (81.42 %) NA
ST 3,103 (4.26 %) NA
SC 10,451 (14.32 %) NA
Total 72,983 (100 %) 16,085

Source:
Source: http://www.financialservices.gov.in Source: http://www.financialservices.gov.in
6. Issues and challenges of the Financial Inclusion
• Demand side issues:
• Huge population with unbanked spread across the country where reachability is difficult.
• Limited accessibility to credit, lack of technological and financial literacy among the people
• Low skill, productivity and vulnerability to the risk of small and marginal farmers,
• lack of saving habits

• Supply Side Challenges:

• Due to no-frill account option most of the accounts are either no balance or low deposit in the accounts which is
not so profitable for bankers,
• high loan default rates,
• reluctance of bankers to these accounts and
• different schemes meant for the rural and urban poor did not translate into outcomes due to the poor delivery
mechanism.
7.Findings:
• PMJDY: Rising in the deposit under the scheme from last 5 years. Majority of accounts are opened
in Public sector banks. ( 37 crore accounts with deposit Rs. 100000 crores)
• *Sukanya Samrudhi Account: Overall amount deposited in Post office was almost double than in
Banks.
• *PM MUDRA Scheme: tremendous growth and progress in the loan disbursement year on year.
(increased to 2.5 times from last 4 years). majority of the loan disbursed to women and for SC/ST/
OBC
• *Atal Pension Yojana: the number of subscribers and their contribution Atal Pension Yojana is rising
phenomenal
• *Most of the PMJDY accounts are linked with both PMJJBY and PMSBY. PMJJBY has 92 % claim
disbursement percentage where as PMSBY has 79 % Claim rate.
• *Stand Up India Scheme: Majority of the loan has sanctioned to women under the scheme around
81.42 %.
Suggestions and Conclusion
 GOI, RBI and financial service providers has to bring the awareness about financial
inclusion schemes on a regular basis in TV, Newspaper and Radio.
 Service providers has to educate the customers about the changes in the scheme, new offers
and benefits.
 Service providers may encourage the beneficiaries of the accounts to operate it on regular
basis and conduct Financial Literacy programs at each branch.

To conclude
• Overall, ------financial schemes are popular and success --- but
• real challenge to the Government are majority of the bank accounts are in dormant stage,
duplication of accounts and opening of the account even by the higher income groups.
REFERENCE: Books and articles

 1] Upasana Sharma (2019) “Financial Inclusion: An Initiative of Indian Banks towards Sustainable Rural
Development”, Advances in Economics and Business Management (AEBM), Vol 6, Issue 5, pp,402-406, July-
Sept 2019.
 2] Dr. Gomathy Thiagarajan (2016) “Financial Inclusion in India- A Review”, International Journal of Science
Technology and Management, Vol. No.5, Issue No. 08, pp,426-432, August 2016.
 3] Mahammad Irshad M and Mahammad Shahid (2019) “A Theoretical study on Financial Inclusions with
reference to central Govt schemes of India”, The Research Journal of social sciences, Vol 10, Issue 6, pp, 335-
338, June 2019.
 4] Sonu Garg and Dr. Parul Agarwal (2014) “Financial Inclusion in India: a Review and Initiatives and
Achievements”, IOSR Journal of Business and Management, Volume 16, Issue6, pp, 52-61, June 2014.
 5] https://pmjdy.gov.in retrieved on 28.11.2019
 6] https:/www.worldbank.org/en/topic/financialinclusion/overvinw retrieved on 29.11.2019
 7] http://www.mudra.org..in retrieved on 02.12.2019
 8] http://www.financialservices.gov.in retrieved on 03.12.2019
 9] http://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=155 retrieved on 05.12.201A
Thank you