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Annals of Computer Science and Information Systems, Volume 14

Proceedings of the 2017 International Conference on Information Technology and Knowledge Management

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Financial Inclusion in India and PMJDY: A Critical Review

DOI: http://dx.doi.org/10.15439/2017KM32

Citation: Proceedings of the 2017 International Conference on Information Technology and Knowledge Management, Ajay Jaiswal, Vijender Kumar Solanki, Zhongyu (Joan) Lu, Nikhil Rajput (eds). ACSIS, Vol. 14, pages 39–46 ()

Full text

Abstract. The recent developments in banking and insurance have transformed the financial system, however, it is restricted only to certain segments of the society, excluding others. i.e. ``financial exclusion''. People with low incomes, cannot access mainstream financial products such as bank accounts, credit, remittances and payment services, financial advisory services, insurance facilities, etc. This situation is detrimental for a nation's economy as micro savings are not properly channelized into the productive sectors of the economy. This study explores to find the current status of financial inclusion in India, analyze the government's effort through various policies like MGNREGA, DBT, PMJDY etc. The study is based on secondary information from the Governmental committees' reports and primary information from six states of India before the launch of PMJDY. The post PMJDY status is reviewed only through the secondary information published in Government reports. It is found that PMJDY has increased the number of Bank accounts through diluting KYC for marginalized and deprived citizens but transactions in the account is very limited. A good number of accounts are dormant in the want of sufficient income to be routed through that account or lack of savings to be deposited. It is recommended to policy makers to concentrate on the creation of job opportunities for all to have complete financial inclusion in India.

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