Financial Inclusion in India and PMJDY: A Critical Review

Abstract

Most recently a national mission on financial inclusion called "PRADHAN MANTRI JAN-DHAN YOJANA" was launched on the 28 th of August 2014. Under the direct supervision of the Indian Prime Minister and the Department of Financial Services, Ministry of Finance, the objective of this mission is to enroll over 70 million households and open their bank accounts along with providing them as a first step a RuPay debit card with a Rs. 1,00,000/-accident cover. In the due course 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 population of financially excluded category mainly comprises of low income groups like urban labourers, slum dwellers of the cities and socially excluded communities. Poverty as a result of absence of income or irregular income, low education, lack of financial education, and location of financial service providers beyond close proximity make it difficult for the service providers to provide financial services which in turn becomes a primary reasons of financial exclusion. It is also believed that financial exclusion also leads to social inclusion. This study is focused in the eastern region of India and particularly capital region of Odisha, India The sample population of 137 for this study comprises of household servants, domestic helps, migrant & local construction laborers, rickshaw / cart pullers, taxi drivers and other contractual low income staff at different private institutions.