Pradhan Mantri Jan Dhan Yojana
INTRODUCTION
Even after 60 years of independence, a large section of Indian population still remains unbanked. 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 providing easy 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 of financial sector. RBI set up the Khan Commission in 2004 to look into financial inclusion and the recommendations of the commission were incorporated into mid term review of the policy (2005-2006) and urged banks to review their existing practices to align them with the objective of financial inclusion. Honorable Prime Minister Narendra Modi announced Pradhan Mantri Jan Dhan Yojana scheme for comprehensive financial inclusion on his first Independence Day speech on 15th August, 2014. The scheme was formally launched on 28th August, 2014 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. 1 Lakh and RuPay Kisan card.
Pradhan Mantri Jan Dhan Yojana, is an ambitious scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra Modi 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 RuPay Kisan card. In the next phase, micro insurance and pension etc. will also be added. Reports said that, on 28th August, more than 1.5 crore bank accounts were opened in a single day. The main objective of this scheme is that easy financial services for the excluded section i.e. weaker sections and the low income group. As per the scheme one could open an account in any bank branch or business correspondent outlet with zero balance. The process of opening an account has been made easier. It is an approach to bring about comprehensive financial inclusion of all households in the country. The aim of the scheme is access to banking facilities, financial literacy and access to credit, insurance and pension facility. Moreover, the beneficiaries would get RuPay Debit card having inbuilt accident insurance covers of Rs. 1 Lakh. The plan also envisages channeling all government benefits to the beneficiaries’ accounts and pushing the direct benefits transfer scheme of the union government. Under this scheme the technological issues like poor connectivity, on line transactions will be addressed. Mobile transactions through telecom operators and their established centers as cash out points are also planned to be used for financial inclusion.
Pradhan Mantri Jan Dhan Yojana (PMJDY) puts the financial inclusion efforts on the mission mode. It is a comprehensive programme aiming at ensuring that the financially excluded people can access to financial services, such as banking accounts, remittance, credit, insurance deposit accounts and pension in an affordable manner. PMJDY accounts can be opened in any bank branch or business correspondence (BC) (Bank Mitra), even with zero balance. However, if the account holder requires a cheque book, she / he will have to meet the minimum balance criteria laid down by the bank. PMJDY focuses on coverage of households as against the earlier plan which focused on coverage of villages. It focuses on coverage of rural as well as urban areas. Earlier plan targeted only villages above 2000 population while under PMJDY whole country is to be covered by extending banking facilities in each sub services area consisting of 1000-1500 households such that facility is available to all within a reasonable distance say about 5 Km.
Pradhan Mantri Jan Dhan Yojana (PMJDY), one of the biggest financial inclusion initiatives in the world, was announced by Prime Minister, Shri Narendra Modi on 15th August 2014 from the ramparts of the Red Fort. While launching the programme on 28th August, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle. Shri Narendra Modi 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 said & the Government has fulfilled its promise in record time.
Pradhan Mantri Jan Dhan Yojana is a National Mission on Financial Inclusion which has an integrated approach to bring about comprehensive financial inclusion and provide banking services to all households in the country. The scheme ensures access to a range of financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension.
Guinness World Records has also recognised the achievements made under the Pradhan Mantri Jan Dhan Yojana. It has certified that the “Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India.”
Against the original target of opening bank accounts for 7.5 crore uncovered households in the country by 26th January, 2015, banks have already opened 12.54 crore accounts as on 31st January 2015 after conducting survey of 21.06 crore households with deposits exceeding Rs 10,000 crores. The target was set after conducting a survey of 21.02 crore households in the country. Today, a coverage of almost 100% has been achieved. Out of the accounts opened, 60% are in rural areas and 40% are in urban areas. Share of female account holders is about 51%.
Pradhan Mantri Jan Dhan Yojana provides a platform for universal access to banking facilities with at least one basic banking account for every household, financial literacy, and access to credit, insurance and pension facility. It covers both urban and rural areas and those who open account would get indigenous Debit Card (RuPay card). Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet at zero balance. Every bank account is on Core Banking System (CBS) of banks. Mobile banking using USSD facility available on even basic feature phones is also being supported. A facility of call centre and toll free number is available nationwide.
PMJDY brings about the objective of financial inclusion for all by providing basic banking accounts with a debit card with inbuilt accident insurance. The main features of PMJDY include Rs. 5,000 overdraft facility for Aadhar-linked accounts and a RuPay debit card with inbuilt Rs. 1 lakh accident insurance cover. In addition, for accounts opened between 15th August 2014 and 26th January 2015, a Life Insurance cover of Rupees 30,000 is available to the eligible beneficiaries. One of the salient features of Pradhan Mantri Jan Dhan Yojana is that after remaining active for 6 months, the account holder will become eligible for an overdraft of up to Rs 5,000. Under the scheme, financial literacy programme which aims to take financial literacy upto village level is provided for better understanding of the whole mechanism. The Mission also envisages extension of Direct Benefit Transfer (DBT) under various Government Schemes through bank accounts of the recipients. The Kisan Credit Cards (KCC) are also being linked with RuPay platform. Micro insurance to the people, and unorganised sector Pension schemes like Swavalamban through the Business Correspondents have also been included for the second phase of the programme.
The Pradhan Mantri Jan Dhan Yojana has a structured monitoring mechanism from Central to District level. At the Centre, Finance Minister is the Mission head along with a Steering Committee and a Mission Director. The programme is monitored at State level by a State Implementation Committee and in the districts by a District Implementation Committee.
Thus, Pradhan Mantri Jan Dhan Yojana not only serves as an important example of Governance in Mission Mode but also demonstrates what a Government can achieve if it is committed to the welfare of the people.
Pradan Mantri Jan Dhan Yojna (PMJDY) was inaugurated on 15 August, 2014 (Pradhan Mantri Jan Dhan Yojna, 2018). This scheme has the following missions:
1 . Access to finance through formal financial system.
2. Opening of basic bank account and provision of Rupay card.
3. Increase the financial literacy.
4. Credit guarantee fund.
5. Micro Insurance.
6. Provision of pension scheme.
CONCEPT OF PRADHAN MANTRI JAN DHAN YOJANA
The Pradhan Mantri Jan Dhan Yojana, a major socio – economic initiative of the National Democratic Alliance government, was announced by the Prime Minister in his Independence Day speech. Jan Dhan Yojana in English it is nothing but “People’s Wealth Scheme”. India’s Prime Minister Narendra Modi announced the launch of this scheme at the historic Red Fort. The slogan for the Pradhan Mantri Jan Dhan Yojana is “Mera Khata Bhagya Vidhaata” it is nothing but “My Bank Account -The creator of the Good Fortune.
Now the government of India and RBI working are aggressive to bring larger section of Indian population within the banking system. Khan commission (2004) recommended for financial inclusion was by providing financial service to the economically poor section of Indian population at a sustainable cost and to create a platform to inculcate the habit of saving money and to provide formal footpaths for credit. In this regard government of India launched Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August, 2014 with the intension to reach weaker section and lower income groups have no access to financial service like savings, credits and insurance as well as to increase financial inflow to the bank. PMJDY aims at providing bank account to single household above the age of 10 years who do not have bank account and will be opened with zero balance. The household opening the account will be benefited with 1 lakh accident cover and 30,000 life cover without premium. People opening account under this scheme will also avail overdraft facility up to Rs. 5,000 from the bank after satisfactory conduct of the account for 6 months. Pension and insurance product can be accessed by account holder under this scheme. Rupee credit card will be issued to the account holder which is acceptable.
PMJDY was introduced by government of India on 28th August, 2014 to ensure comprehensive financial inclusion of all the households in the country. PMJDY envisions universal access to banking services and products with at least one banking account for every households in the country. This scheme came into picture with a view to provide comprehensive and inclusive growth. PMJDY is a scheme which came with additional features compare to earlier financial inclusion schemes like minor above 10 years can open the account, RuPay debit card issued for the account holder to withdrawal, deposits and payment purpose, accidental insurance of Rs. 1,00,000 and life insurance of Rs. 30,000 provided without premium, after 6 month of satisfactory transaction of the account household can avail Rs. 5,000 overdraft facility and interest will be charged base plus 2% or 12% whichever is lower, account can be transferred in case customer relocates.
What are the benefits of the PMJDY Scheme?
Insurance Benefits
The account holders under this scheme will get an accidental insurance cover of Rs 1 lakh and a life cover of Rs 30,000 – payment on the death of the beneficiary (subject to conditions).
Loan Benefits
The account holders under this scheme can avail an overdraft facility upto Rs 5,000. This is available against one account per household. The quantum of the loan may look small but definitely is a boon to those below the poverty line and would enable them to reinvest this in more profitable avenues.
Mobile Banking Facility:
Enabling carrying out transactions through a mobile phone facilitates such account holders in checking of balance and also transferring funds with ease across India.
The other benefits being:
1. The account holders would be eligible for interest on their deposits.
2. They are not mandated to have a minimum balance in the account.
3. The scheme allows Direct Benefit Transfer for beneficiaries of Government Schemes.
4. Account – holders can get easy access to pension and other insurance products with the PMJDY scheme.
ACTION PLAN FOR IMPLEMENTING PRADHAN MANTRI JAN DHAN
YOJANA
Two phases of this scheme has been determined in which the objective of financial inclusion of weaker section of the society is supposed to be achieved. The PMJDY scheme is being implemented in two phases. The first phase was to be 15th August, 2014 to 14th August, 2015 and the second phase from 15th August, 2015 to 14th August, 2018.
Phase I of PMJDY (15th August, 2014 To 14th August, 2015):
Universal access to banking facilities for all households across the country through a bank branch or a fixed point BC within a reasonable distance except areas with infrastructure and connectivity constraints. Covering all households with at least one basic banking account with overdraft facility of up to Rs. 5,000 after satisfactory operation for 6 months.
Expansion of direct benefit transfer facility under various government schemes will be provided through bank account of the beneficiaries. Issuing KCC as RuPay Kisan. Providing basic banking accounts and RuPay Debit card which has inbuilt accident insurance cover of Rs. 1 lakh.
Financial literacy programme under the scheme will be implemented up to village level.
Phase II of PMJDY (15th August, 2015 To 14th August, 2018):
1. Covering 7.5 crore households with at least one PMJDY.
2. Overdraft facility up to Rs. 5,000 after six months satisfactory operation / history.
3. Creation of Credit Guarantee Fund for coverage of defaults in accounts with overdraft limit up to Rs.
5,000.
4. Micro insurance will be provided to the people.
5. Unorganized sector pension schemes like Swavalamban is to be proposed through the business
correspondence.
6. Coverage of households in hilly, tribal and difficult areas and coverage of remaining adults in the
households and students.
7. Reactivating a large number of dormant accounts.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Documents required to open the account
-An account under this scheme can be opened by presenting an officially valid document.
– The passport,
– The driving licence,
– The Permanent Account Number (PAN) Card,
– The Voter ‘s id issued by Election Commission of India,
– The Aadhaar Card ;
Any other document as notified by the Central Government in consultation with the Regulator:
Provided that where simplified measures are applied for verifying the identity of the clients, the following documents shall be deemed to be officially valid documents:—
1. Identity card with applicant’s Photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;
2. A letter issued by a Gazetted officer, with a duly attested photograph of the person.
– In case, there is a change in the current address, you need to submit valid documents to transfer your account to the new address.
– Two passport size photographs are required.
– In case, a person does not have a valid residential address, he/she needs to submit a valid identity proof issued by the government of India.
Important to note that the Reserve Bank of India (RBI) has clarified in the year 2014 that those persons who do not have any of the ‘officially valid documents’ can open “Small Accounts” with banks.
A “Small Account” can be opened by a person on the basis of a self-attested photograph and putting his/her signatures or thumb print in the presence of officials of the bank. For such accounts, the aggregate credits have been limited to not more than Rs 1 lakh a year and aggregate withdrawals have been limited to not more than Rs 10,000 in a month, and balance in the account at any point of time should not cross Rs 50,000. The validity of these accounts is 1 year, normally after which such accounts would be allowed to continue for a further period of twelve more months if the account-holder provides a document showing that he/she has applied for any of the Officially Valid Document within 12 months of opening the small account.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Guinness Book of World Records
The achievements made under PMJDY are also recognised by the Guinness Book of World Records. It gave the certificate by stating that the “Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India from 23 to 29 August, 2014.”
As we know that due to Coronavirus pandemic and 21 days Lockdown in the country, the government of India has announced some relief packages for the benefits of poor and needy under Pradhan Mantri Garib Kalyan Yojana. One of them is that Women Jan Dhan account holders will get Rs 500 per month for the next three months.
Pradhan Mantri Jan Dhan Yojana (PMJDY):
Features:
Both rural and urban that is whole households of the country are covered under the scheme. For every household, financial literacy, access to credit, insurance and pension it provides universal access to banking facilities with at least one basic account.
People can open their account in any bank branch or Business Correspondent (Bank Mitr) outlet. For three security schemes, PMJDY provided a platform namely Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY) and Pradhan Mantri Mudra Yojana (PMMY).
Accounts opened under PMJDY with Zero balance. If the account-holder wants a cheque book then he/she has to fulfil minimum balance criteria. Under this scheme, the account holders are provided with a RuPay debit card which can be used across all ATMs for cash withdrawal.
BENEFITS OF PRADHAN MANTRI JAN DHAN YOJANA
1. Account holders will be provided zero balance bank account with RuPay debit card, in addition to
accidental insurance cover of Rs. 1 Lakh.
2. Those who open accounts by January, 2015 over and above the 1 lakh accident, they be given life
insurance cover of Rs. 30,000 to be give by Life Insurance Corporation.
3. After six months of opening of the bank account, holders can avail 5,000 overdrafts from the bank. Overdraft facility is of great support to the people to come out of the clutches of pawnbrokers who change an exorbitant rate of interest.
4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.
5. Mobile banking for the poor would be available through National Unified USSD platform (NUUP) for
which all banks and mobile companies have come together.
6. Account holders receive cheque book, literature on financial literacy and pass book in a kit.
7. Account holder will have debit card which can be used for E-Commerce transactions.
8. Additional loan of Rs. 15,000 will be sanctioned to the account holder in case the repayment of each loan
was made on time.
9. Mobile banking facility would also be extended.
10. Account holders would get attractive rate of interest on deposits besides availing of pension facility notified by the insurance company.
List of Banks Offering Jan Dhan Account Benefits
a) Government banks
– State Bank of India (and its affiliated banks)
– Bank of Baroda
– Bank of India
– Allahabad Bank
– Vijaya Bank
– Central Bank of India
– Punjab National Bank
– Dena Bank
– Bhartiya Mahila Bank
– Punjab and Sindh Bank
– Oriental Bank of Commerce
– Canara Bank
– Bank of Maharashtra
– Corporation Bank
– Indian Bank
– Union Bank of India
– Andhra Bank
– IDBI Bank
– Syndicate Bank
b) Private banks
– HDFC Bank
– ICICI
– YES Bank
– Karnataka Bank
– Kotak Mahindra Bank
– Axis Bank
– Dhanlaxmi Bank
– Federal Bank
– Induslnd Bank
– ING Vyasa Bank
HIGHLIGHTS OF THE PRADHAN MANTRI JAN DHAN YOJANA SCHEME
1. Interest on deposit.
2. In built accident insurance cover of Rs. 1 lakh with RuPay Debit Card given to the account holder.
3. No minimum balance required.
4. An additional Rs. 30,000 life insurance cover for the accounts opened up to January, 26, 2015.
5. Easy transfer of money across India.
6. Beneficiaries of government schemes will get direct benefit transfer in that account.
7. After satisfactory operation of the account for 6 months an overdraft facility will be permitted.
8. Access to pension, insurance product.
9. Accidental insurance cover, RuPay Debit Card must be used at least once in 45 days.
10. Availability of overdraft facility up to Rs. 5,000 but in only one account per household preferably lady of the household.
CHALLENGES OF PRADHAN MANTRI JAN DHAN YOJANA
1. Many cases have been detected that, where an individual has opened more than one account in various banks.
2. Budgetary provisions has not been made by the government to provide incentives, otherwise the financial status of the banks
may be ruined.
3. Insurance companies have to fix a nominal premium to cover the risk of the account holders in case it is not
done the state owned LIC may batter with financial losses.
4. Overdraft facility needs to be properly regulated, as the same is the discretionary of the concerned banks. Many banks may decline to extend the overdraft facility therefore defeating the purpose.
5. Business correspondents if made to accomplish the objective may misuse the authority and thereby making
the life of people under below poverty line miserable.
6. KYC norms are not insisted under this programme, therefore duplication is unavoidable.
7. RBI has to accord approval to banks so as to enable them to establish more branches keeping in view the number of
villages and the population.
8. Bank correspondence i.e. bank mitra is the idea before the finance ministry whereas creating infrastructure mitra for business mitra, including computers, micro ATM biometric scanners, and internet connectivity may be a major concern.
9. There is a commitment on the part of the government to provide Rs. 50,000 towards equipment, Rs. 25,000 towards working capital and Rs. 50,000 towards vehicle. These arrangements have been made without budgeting provisions.
10 .Bank mitra to be appointed in terms of lakhs. They should be properly trained with accurate knowledge, skill and attitude and
the outcome of the training shall be visible in terms of accomplishing the target.
11. Making every village a Swavalamban village is considered to be an advantage but the lack of infrastructure may become a
major hurdle for the effective implementation.
12. Reserve Bank of India has to set in a roadmap for the financial inclusion to be effectively implemented by the Indian banking system.
13. Private Banks levy hidden charges on the beneficiary which may become a deterrent for the financial inclusion.
REVIEW OF LITERATURE
Harpreet Kaur and Kawal Nain Singh (2015) studied the recent trends in financial inclusion in India with special reference to Pradhan Mantri Jan Dhan Yojana (PMJDY), highlighting its key areas and suggest strategies to ensure maximum financial inclusion for the underprivileged and unbanked areas.
Sonam Kumari Gupta (2015) highlighted on Performance of the Pradhan Mantri Jan Dhan Yojana (PMJDY) and latest trends being implemented for financial inclusion by PMJDY. It is found that, of the accounts opened at public sector banks under the Jan Dhan Yojana, 71% are zero balance, against 64% for private banks released by the ministry, only 28% of the accounts opened under the scheme are active, with about Rs.9, 000 crores deposited in these.
Patnaik (2015) analyzed that, only 13.8% of the respondent in Bubaneswar have access to bank accounts and out of the total respondent who do not have bank account due to various reason are alarming are not aware of PMJDY scheme. Amongst males 78.9% and in 95.08% were not aware of the scheme. The study concluded that, the banks should make more effort in creating awareness on zero balance account and should aggressively campaign for such scheme.
Diveyesh Kumar (2014) discussed the overview of financial inclusion using PMJDY in India. It is revealed that, it is the greatest steps ever taken to eradicate poverty are financial inclusion through PMJDY. It is suggested that, the success of this scheme constant review and regular check is very much essential.
Bhatia and Singh (2015) have attempted to study the initiatives of central Government towards financial inclusion, steps taken by the bank with respect financial inclusion, strategies adopted by RBI and Government of India for strengthening financial inclusion and challenges faced to achieve financial inclusion as a part of sustainable growth. They concluded that India is at moderate level of financial inclusion and the need of efficient and effective implementation of policies to achieve the target of banking facilities being felt.
Dr. Vedala Naga Sailaja and Dr. Uma MaheswaraRao T.(2018) in their research paper: A study on financial inclusion awareness through PMJDY in Guntur District studied about the present status and people’s awareness about PMJDY schemes and also the factors affecting access to financial products and also suggests measures to overcome problems in attaining financial inclusion. This study suggests that the government and banking sector should take necessary steps to identify and remove the factors that hinder the public from accessing formal financial channels. By providing awareness to people through financial counseling helps in removing the problems faced in accessing formal financial sources.
Charan Singh and GopalNaik (2018) had focused on the importance of financial inclusion after PMJDY through the study of Financial Inclusion after PMJDY: A Case Study of GubbiTaluk, Tumkur. PradhanMantri Jan-DhanYojana (PMJDY) was introduced in August 2014 and has achieved record success in terms of ensuring almost 100% household coverage. The study attempts to examine the success of PMJDY in six Gram Panchayats of Gubbi. The study finds that new accounts have been opened by women, small and marginal farmers, and rural people with no formal education. The properly run, Common Service Centers have served an important purpose of facilitating financial services to rural population. Interestingly, demonetization did not have any long term impact on the behavior of users nor bankers but money lenders improved their services. The other financial schemes of the government pertaining to pension, insurance and social security have yet to make an inroad into rural sector. However, digitalization of the economy needs to be carefully addressed because many respondents were not comfortable in using online, internet, ATM and mobile banking.
Partha Sarathi Senapati (2018) in his research “A Study of PradhanMantri Jan DhanYojana (PMJDY) Scheme in Odisha and Challenges of Financial Inclusion” mentioned about the importance of this scheme (PMJDY) and its progress across the country as well as in the state of Odisha .PradhanMantri Jan-DhanYojana (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. 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 inclusive growth. This paper tries to study the scheme in details and its progress across the country as well as in the state of Odisha.
M. RifayaMeera, P. Kleeswaran and R. Gurunandhini
(2017) in their study about financial inclusion through PradhanMantri Jan Dhan scheme try to know the salient features and benefits enjoyed by PMJDY account holders. They also analyzed the current status and progress of PMJDY scheme and make suitable suggestion for the betterment of the scheme. The author made a comparison between public sector, private sector and regional rural banks in terms of number of accounts opened, number of accounts with zero balance, rupay cards issued. It is clear that all these services are given mainly through public sector banks and the least through regional rural banks. This study suggests that private sector banks participation should be increased and more awareness about the scheme through financial literacy centers and camps should be provided to the public.
Reetika Bhatt (2017) published an article entitled “Augmenting financial inclusion through PradhanMantri Jan DhanYojana”, the major objective of the study is to know the level of awareness and progress of PMJDY. From the study we could understand that in the first phase of the scheme several unbanked villages were identified and covered by opening banking outlets and in the second phase a high increase in number of bank accounts was seen. District wise study shows a high progress of the scheme. The scheme is more successful in rural areas. Majority of the accounts are opened under this scheme and of the accounts opened majority are zero balance accounts.
Manuela Günther (2017) “The Progress of Financial Inclusion in India: Insights from Multiple Waves of Survey Data” has studied how the unbanked can be brought into the formal financial system remains a question of policy and academic interest. India lends itself as an interesting case study. He uses data of India’s lowest income states to understand the trends in financial inclusion in India between 2013 and 2015. The sample frame covers the time-period in which India introduced the PMJDY scheme. Over 260 million bank accounts are opened. He characterizes several cross-sectional differences that highlight the heterogeneity in the progress of financial inclusion. For instance, richer, more educated, older, and employed individuals are still most likely to own a bank account. But the PMJDY scheme has significantly increased the likelihood of owning an account among the most disadvantaged, such as women and the rural population. Lastly, it also shed light on the effect of other Government-led interventions such as the introduction of unique identification cards, bank agents, and digitizing government payments.
Dr. Rajeshwari M. Shettar (2016) in her study about PradhanMantri Jan DhanYojana: Issues and Challenges studied about the present scenario, actual progress and challenges of PradhanMantri Jan DhanYojana. This study suggests that duplication of accounts should be prevented, financial literacy programs should be conducted, ATM s should be strengthened in rural areas and also Swabhiman campaigns with business correspondents needs to be enlarged. Another challenge faced by the scheme is to make the non operative zero balance account operative.
MrunalChetanbhaiJoshi1-Vikram P. Rajpurohit (2016) has found through the study of Awareness of Financial Inclusion: An Empirical Study, that government is consistently working for the betterment of rural customer by taking initiative through various schemes. From time to time Indian Government consistently makes its efforts towards inclusion of rural customer (investors) in organizing 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 up to 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 PMJDY among its potential investor i.e. rural customer.
Rajat Deb (2016) “Perceptions of Bank Account Holders about PMJDY – A Study on Baikhora Region of South Tripura” found the empirical results that have indicated the catalysts like demographic characteristics, service quality and scheme benefits. Policy lags and perceptions about private banks have attracted the respondents in nationalized banks. The public sector banks may incorporate the results in their strategic policy formulations to attract the potential customers and may frame course of actions to compete with the tentative private players in PMJDY. The study offers policy relevance, acknowledges few limitations and indicates the future research agenda.
Patel (2014) highlighted the features, benefit, limitation and criticism of PMJDY. The study mentioned that there is lack of financial inclusion in India because only 59% of households having bank accounts. By discussing various pillars of PMJDY, study also mentioned the process to open ‘jan-dhan account’. Study criticised scheme due to- multiple accounts to get more insurance and also due to money laundering activities.
Kumar (2015) studied the implications and effectiveness of PMJDY as well threats for the success for PMJDY. The study is focused on phases as well strategy for the successful implementation of PMJDY. The study concluded that financial inclusion requires sustained efforts over many years and emphasis on quality rather than quantity.
Hussain (2015) studied the need of financial inclusion through PMJDY in Indian context. The study discussed that there are 250 million household in the country but only three-fifths of the total had access to basic banking services. The study concluded that for the successful implementation of this mission. Full support is needed from banking and other financial institutions and above the citizens.
Kaur and Singh (2015) studied the progress of financial inclusion initiative in India. The study focused on financial inclusion initiative before launch of PMJDY and discussed various steps taken by RBI and other banks to achieve financial inclusion. Study concluded that financial inclusion mitigates the exploitation of vulnerable sections by money lenders, by facilitating easy access to formal credit.
Singh (2016) studied the role and progress of PMJDY and also the challenges in the way of financial inclusion in India. Study also focused on details of household coverages of various states under financial inclusion. The study concluded that involvement of people in financial system and formal banking sector is necessary for the development of country.
RESEARCH METHODOLOGY
Research Methodology is the general research strategy that outlines the way in which research is to be undertaken. The following methodologies have been adopted for this study:
3.1 Research problem : The research problem was to know the Awareness and Benefits of Pradhan Mantri Jan Dhan Yojana.
3.2 Research Objective:
1. To find the most important dimensions of service quality that affect customer satisfaction.
2. To analyze perceived responses of people about PMJDY.
3. To give suggestions for good quality services.
4. To find out awareness among people for PMJDY.
3.3 Research Design: This study is dependent on tangibility, reliability, responsiveness, assurance and empathy as evaluated by customers on quality of service, so it is a causal research design; since it reveals a cause and effect relationship.
3.4 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.
3.5 Sample Size: 80 people were approached out of which 71 responses were taken into consideration for the study.
3.6 Target Population: Opinion of general public of Udaipur from different age groups was taken.
3.7 Statistical tools: Percentage method was used to analyze a few open-ended questions; some of the Questions were based on Likert scale, to analysis the respondent’s opinion about PMJDY. Chi-Square technique was applied to analyze a set of data.