Financial inclusion after PMJDY: a case study of Gubbi Taluk, Tumkur

Abstract

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was introduced in August 2014 and has achieved record success in terms of ensuring almost 100 percent household coverage. The study attempts to examine the success of PMJDY in six Gram Panchayats of Gubbi. The study finds that new accounts have been opened by women, small and marginal farmers, and rural people with no formal education. The properly run, Common Service Centres have served an important purpose of facilitating financial services to rural population. Interestingly, demonetisation did not have any long term impact on the behaviour of users nor bankers but money lenders improved their services. The other financial schemes of the government pertaining to pension, insurance and social security have yet to make an inroad into rural sector. However, digitalization of the economy needs to be carefully addressed because many respondents were not comfortable in using online, internet, ATM and mobile banking.