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Impact Assessment of Pradhan Mantri Jan-Dhan Yojana in Augmenting Financial Inclusion in India - A District-Level Analysis

Author

Listed:
  • Yadav, Vishal
  • Singh, Shishir Kumar
  • Velan, Nirmala
  • Aftab, Md Asif

Abstract

The study builds up a financial inclusion index (FII) across districts of 27 Indian states utilizing UNDP's similar approach in constructing the Human Development Index. The FII is constructed for the period 2011-2018. The study additionally investigates government schemes' effectiveness, especially the PMJDY, in augmenting financial inclusion throughout its inception. The study's significant finding shows that a greater part of the Indian locale falls under the class of low financial inclusion. Southern areas perform better while the central, eastern, and north-eastern locale perform poorly in financial inclusion. Further, FII and HDI have a positive association between them. Furthermore, the PMJDY framework has not driven the economy towards a high degree of financial inclusion with only a couple of areas improving their rank from low to medium financial inclusion. Subsequently, underlying changes are legitimized in the institutional setting by fortifying and growing monetary organizations and all the while handling digital literacy.

Suggested Citation

  • Yadav, Vishal & Singh, Shishir Kumar & Velan, Nirmala & Aftab, Md Asif, 2020. "Impact Assessment of Pradhan Mantri Jan-Dhan Yojana in Augmenting Financial Inclusion in India - A District-Level Analysis," MPRA Paper 105064, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105064
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial Institutions; Financial inclusion index (FII); Indian districts; PMJDY.;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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