DMPQ- Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society? Give arguments to justify your opinion.

Financial inclusion means providing financial services such as basic bank accounts , deposit and saving facility at very low cost to poor section of society or to those who are not having access to banking sector so that they can also enjoy basic banking facilities and they can be integrated with formal banking system.  In this direction Pradhan Mantri Jan Dhan Yojna(PMJDY) was started with a wide vision to provide access to banking facilities to those people who are not having any bank accounts or still unbanked from formal banking sector. The necessity of PMJDY in financial inclusion is because of following reasons:

  • According to census report of 2011 out of total population only 58.7 percent population have access to banking services remaining 42%. PMJDY would bring in those who have been left behind by mainstreaming banking services and would reduce the role of money lenders.
  • Under this scheme people would get basic bank accounts with insurance facility and an additional facility of overdraft. Thus they would avail benefit offered by banks and facilities provided by government and will be able to develop small savings habits, and which will enhance capital formation, resulting in increased economic development of country.
  • Banks are now opening bank accounts with zero balance and providing facilities to poor and unbanked section of society so that they can also get maximum benefits from banking sector.

The PMJDY is playing its role in great manner by ensuring mass participation of people and providing them low cost financial services and banking facilities, still there is need to impart financial knowledge and awareness among people about benefits of banks and basic banking facilities. But just opening accounts would not fulfil the desired goals of financial inclusion because of idle banks accounts which only increase expenses of banks. Real benefits would go to people when people will use these accounts. Demonetisation helps in a great way in this direction.


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