inclusion is about (a) the broadening of financial services to those people and
enterprises who do not have access to financial services sector; (b) the
deepening of financial services for those who have minimal financial services;
and (c) greater financial literacy and consumer protection so that those who
are offered financial products can make appropriate choices. The imperative for
financial inclusion is both a moral one as well as one based on economic
efficiency (Rajan R. (2014)).
Financial inclusion activities become one of the
important agendas globally. The World Bank estimates that nearly 2.5bn adults
globally (50% of the total adult population) is currently ‘unbanked’ or does
not have formal financial services. These estimates have huge disparities
between different regions of the world. In developed countries (OECD countries)
high proportion of the adult population uses the formal way of financial
services. While in developing countries two-thirds of the adult populations are
still financially excluded.
In India, financial inclusion
has invariably been a
priority, since 1969, when banks
were nationalized, the strategy for addressing the banking needs of the poor has been biased
toward providing credit, neglecting alternative aspects, like building a deposit base, promoting a savings culture, or
extending the payment network.
(Aggarwal R. (2014)).
However, over the last decade, India’s financial inclusion agenda has
seen a strategic shift from a
stress on credit to an additional comprehensive approach toward financial services, significantly opening bank
accounts and providing basic financial products like insurance.
This shift has been partially driven
by the necessity to attain alternative public policy goals, like exchange product
subsidies with money transfers, which needs beneficiaries to possess bank accounts for
advancing the transfers. (Chakrabarty
The recently launched Pradhan Mantri Jan-DhanYojana
(PMJDY) seems to deal with most of the issues associated with an additional concrete and substantial engagement with the poor
as a part of a financial inclusion strategy to
be undertaken in a mission
mode. The objective of
PMJDY is to make sure ‘access to various financial services like accessibility of basic
savings bank account,
access to need based credit, remittances
facility, insurance and pension to the excluded sections, i.e., weaker sections
and low income groups’.
The Pradhan Mantri
Jan-DhanYojana will be launched
on 28 August, 2014,
across the nation at the same time. it’ll be launched formally
in Delhi with parallel
functions at the state level and additionally at
district and sub-district levels(Alpana and Yashpal
(2015)). Camps are to be organized at the branch level. The Pradhan Mantri
Jan-DhanYojana lies at the core of development philosophy of “Sab Ka Sath Sab Ka Vikas”. With a bank account, each household would gain access to banking and credit facilities (Chowhan S. S., and Pande J. C. (2014)).
This will enable them to come out of the grip of
moneylenders, manage to stay away from monetary crises caused by emerging desires,
and most significantly, benefit from a variety of financial products.
As a primary step, each account holder gets a
RuPay debit card with
Further, they’ll be covered by insurance and
pension products. there is need to register over 7.5crore households and open their
(Lakshmi S. et. al, (2014)).
Mission Mode Objectives (6 Pillars) and
in 2 phases:
PMJDY is to be executed in the Mission Mode. It includes of the
subsequent six pillars:-
Phase I (15 August, 2014 – 14 August, 2015)
1. Universal access to banking facilities:
Measuring every district into Sub service area (SSA) catering to
1000-1500 households in an
exceedingly manner that each habitation has access to banking services among an
say five kilometre by 14 August,2015.
2. Providing Basic Banking Accounts with overdraft facility and RuPay debit card to all households:
The effort would be to first cover all uncovered households with banking
facilities by August, 2015, by opening basic
bank accounts. Account holder would be provided a RuPay debit card. Facility of an overdraft to each basic banking account holder would be considered after satisfactory operation / credit history
of six months.
3. financial literacy Programme:
financial literacy would be an integral part of the Mission so as to let the beneficiaries create best
use of the financial services being created accessible to them.
PhaseII(15 August,2015- 14 August,2018)
4. Creation of Credit Guarantee Fund:
Creation of a Credit Guarantee Fund would
be to cover the defaults in overdraft accounts.
5. micro -Insurance:
To provide micro-insurance to all willing and eligible persons by 14 August, 2018, and so on an current basis.
6. Unorganized sector Pension schemes like
during this scheme unorganized sector are going to be provided pension advantages by 14 August, 2018 and so on an ongoing basis.
Some of the phase II activities would even be applied in phase I. additionally, during this phase, coverage of households in hilly, tribal and troublesome areas would be disbursed. Moreover,
this phase would concentrate on coverage of remaining adults within the households and students.
1.1 Rajasthan scenario:
Rajasthan is the largest state within the country
with a geographical area of 3.42 lakh sq. kilometers. It occupies around 100 percent of the whole area of India. The state has a population of 6.8 crore, that is around 5.67% of the country’s population. The state is
primarily rural (with seventy
five adolescents residing
in rural areas and 25th in urban areas). Of the aggregate urban population 9.8 per
cent live in the slums (directorate of economics & statistics, Rajasthan). As per census 2011, the general literacy rate is 67.06 try and the female literacy rate is 52.66 %, thatcould be
a noteworthy improvement since 2001 (in
2001, the literacy rate
was 60.4% whereas the female literacy rate was 44.34%).
Access to banking services plays a awfully important role in economic and communal
individuals. The impact
assessment of microfinance programs in Rajasthan and elsewhere clearly designates the variation in financial gain level of beneficiaries; reduction of dependency on
moneylenders, increase in expenditure/investment on children’s education, physiological condition, agricultural inputs, increase in production
and utmost vital the enhancedawareness and confidence among women and poor. however the required success wasn’t achieved by the microfinance programs, therefore the central govt. launched ‘PMJDY’ in order to overcome the loopholes of previous programmes.
Therefore, the study is required to find out
the implementation of PMJDY and its effect on
the socio-economic condition of rural households.