Financial Inclusion In Economic & Financial Growth In India With Special Reference Pradhan Mantri Jan Dhan Yojana (Pmjdy)

Abstract

Financial inclusion has emerged as a key policy focus in India, characterized by a series of initiatives and reforms aimed at extending access to financial services to marginalized and rural populations. The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, is among the world's most ambitious financial inclusion programs, aiming to provide basic banking services to every household. The Aadhaar system, assigning unique identification numbers, plays a pivotal role in enabling this endeavour by establishing identity and facilitating access to government welfare schemes and financial services. Furthermore, digital payment systems, particularly the Unified Payments Interface (UPI), have revolutionized financial transactions and access to services.

The study employs logistic and probit models within the framework of discrete choice models to estimate the probabilities of individuals choosing different levels of financial inclusion based on their characteristics and the attributes of available financial services. This approach allows for the analysis of the determinants of financial inclusion and the prediction of how these choices may change in response to shifts in demographics or changes in the attributes of available financial alternatives.

Promoting financial literacy, regulatory reforms, the Digital India initiative, credit guarantee schemes, and other measures have been implemented to foster inclusive finance. However, as of the last update in September 2021, challenges remain in ensuring service quality, addressing the digital divide, and enhancing financial awareness. Financial inclusion in India continues to be a top policy priority, with ongoing efforts to bridge the remaining gaps and create a financially empowered society. For the most current information, readers are encouraged to refer to the latest reports and updates from relevant government agencies and financial institutions.