Financial Inclusion in
INDIA“ PMJDY:
A snapshot of the Reality
check. ”
Objective of the project
• The objective of the project is to access the Indian experience in the field of Financial Inclusion.• To study this Financial Inclusion
and how it works, a recent example has been taken which will also help to lower the unbanked population of the country.
Financial Inclusion before PMJDY
• In India, financial inclusion first featured in 2005, when it was introduced by K C Chakraborty, the chairman of Indian Bank.
• Mangalam Village became the first village in India where all households were provided banking facilities.
• KYC Norms were relaxed for people intending to open accounts with annual deposits of less than Rs. 50,000.
• Census 2011 estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%) households had access to banking services.
• Out of the 16.78 crore rural households, 9.14 crore (54.46%) were availing banking services.
• Out of the 7.89 crore urban households, 5.34 crore (67.68%) households were availing banking services.
Cont’d
Availability of Banking Services
National Level DataFor
PMJDY
After PMJDY S.No
No Of AccountsNo Of Rupa
y Debit Cards
Balance In Accounts
% of Zero Balan
ce AccountsRural Urban Total
1 Public Sector Banks 6.87 5.73 12.59 11.75 1407
5.44 52.74
2 Private Banks 2.44 0.43 2.87 2.09 3186.83 52.96
3 Regional Rural Banks 0.4 0.28 0.67 0.59 1034.
51 49.25
Total 9.71 6.43 16.14 14.43 18296.78
52.60
Actual Scenario• After the interaction with the bank
officials, some basic problems and challenges came into focus.• Massive work load, Illiteracy of
customers and easy KYC norms are few to mention.• As shown in figures, the reality is
somewhat different.
Realistic ExperienceChallengesPercent %
Lack of Financial Literacy 60%Bulk Opening forms 30%Non availability of ID proof 10%
60%30%
10%
Lack of Financial Literacy
Bulk Opening forms
Non availability of ID proof
UBI SBI IDBI BOB PNB0
500
1000
1500
2000
2500
3000
3500 3082 3167
2064
2797
1596 No. of account
No.
of
Acco
unts
Bank UBI SBI IDBI BOB PNB
No. of account 3082
3167
2064
2797
1596
No. of accounts opened in last 6 months
Bank UBI SBI IDBI BOB PNBNo. of
account 326 900 2941322 480
Zero Balance Accounts
UBI SBI IDBI BOB PNB0
200
400
600
800
1000
1200
1400
326
900
294
1322
480No. of account
No.
of
Acco
unts
No. of Persons 12 22 6Awareness Yes No don’t Know
Awareness of PMJDY among customers
Yes No don’t Know0
5
10
15
20
25
12
22
6
Awareness of PMJDY
Awareness
No.
Of P
erso
ns
My Recommendations1. Financial Education-leads to-Financial Inclusion-leads to- Financial Stability.
2. Achieving number is not success, delivering promises is.
Conclusion• To sum up, financial inclusion is the
road that India needs to travel towards becoming a global player. Financial access will attract global market players to our country and that will result in increasing employment and business opportunities.
• Financial inclusion cannot be achieved only by meeting the target numbers. . The target is universality, not just speed and numbers.” The scheme can be a “waste” if it leads to duplication of accounts.
Noopur Srivastava
Intern, RPCD