Issues and challenges of Pradhan Mantri Jan Dhan Yojana

Abstract

Financial Inclusion is a fundamental way in which a society’s welfare and development can be measured. In India, even though Financial Inclusion has always been a highly discussed topic, it was only on the last Independence Day (i.e. 15th August, 2014) it became a much more main stream and highly analyzed topic in Indian public policy. Based on 2011 Census, only 58.7% of households in India had any access to financial services. The Pradhan Mantri Jan Dhan Yojana (PMJDY) launched by the Prime Minister has opened more than 15 crore accounts (10 crore rural & 5 crore urban) in its first year. While this is a huge step towards the ultimate goal set by the Government, this study aims to analyze the problems & challenges that the scheme faces in making financial inclusion effective for all the stakeholders, viz. the banking industry, the citizens and the Government. The objectives of this study are: * Studying success and awareness of PMJDY scheme. * Identifying the issues and challenges in making PMJDY effective. * Recommend ways to tackle these problems.