A 'COST-BENEFIT' ANALYSIS OF PRADHAN MATRI JAN DHAN YOJANA (PMJDY)

Abstract

Financial inclusion has been a matter of greatest importance for India and while reasonable progress has been made over the years, India remains a long way from universal financial inclusion. Generally the vulnerable section of the society has always been kept away from the banking fold because of their lower income and poor banking awareness. This has resulted in the dearth or shortage of credit facilities at reasonable cost and also the financial aids are not available to them at the times of their need. The financial system in India is considered as one of the premier in the world despite this there is lack of financial awareness and availability of financial services in the rural areas of India especially among the vulnerable section of the society, which is commonly known as ‘bottom of Pyramid’. Therefore, it is necessary to provide them financial assistance in order to sail them out from the sorry state of affairs. Recently, in 2014 to give leverage to financial inclusion drive ‘Pradhan Matri Jan Dhan Yojana’ has been introduced. While there has been a tremendous increase in the number of bank accounts opened, but financial inclusion means not just the opening of bank accounts but, more importantly, access to credit from formal sources. Therefore, financial inclusion is a stepping stone for the inclusive growth process & sustainable development of the country.