| Pub. Date | : July, 2021 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP70221 |
| Author Name | : Kavita Laghate and Meghna Chotaliya |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 10 |
Financial inclusion and inclusive growth are indispensable for the economic growth of a nation. Financial resources need to be distributed equitably to the unreached and poor sections of the society who have limited access to banking facilities. Pradhan Mantri Jan Dhan Yojana (PMJDY) is a policy initiative of the Government of India in this direction. In this paper, an attempt is made to understand the extent of financial inclusion through banking activities in India post implementation of PMJDY considering banking growth and resultant financial inclusion by means of major banking variables such as deposits and credits of banks in India before 2014 and after 2014 (the year of implementation of PMJDY).
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable (Pravarkar, 2014). The larger aim of financial inclusion is to provide deeper penetration of banking services across the country (Singh and Nisha, 2014). Pradhan Mantri Jan Dhan Yojana (PMJDY) with reference to financial inclusion is an innovative concept which enables alternative techniques to promote the banking habits and acts as enabler in reducing the poverty, being the largest financial inclusion plan in the world (Ashok et al., 2019). Financial inclusion in the Indian context is all the more critical given the large poor population who do not have adequate social security (Parveen et al., 2018). Indian economy is fast growing with a population of over 1.21 billion and prolonged financial services deprivation may lead to social exclusion hence, financial inclusion is considered as an explicit strategy for achieving inclusive growth in India (Jacob et al., 2019). The efforts of the Government of