Dutta, Swati and Mehta, Balwant Singh
Banking the unbanked: The performance and impact of Pradhan Mantri Jan Dhan Yojana (PMJDY) schemes on poor households in Bihar - IASSI Quarterly: Contributions to Indian Social Science - 40(1), Jan-Mar, 2021: p.5-28
The paper examines the impact of PMJDY scheme on the poor households’ financial behavior in terms of savings, borrowings, and active use of bank accounts based on a primary survey conducted in eight villages spread over two districts of Bihar during August 2018. The results show that PMJDY programme has been broadly successful as a financial inclusion strategy related to opening bank account among poorer households particularly those engaged in casual labour activities and illiterate. However poor households are still largely dependent on SHGs and money lenders for accessing credit due to lack of suitable saving products. The Probit regression analysis suggests that education plays an important role in the active use of bank account as very few poor households were aware of the overdraft facility, accidental insurance, and life insurance. Hence, the financial literacy programme as well as suitable savings products for the poor need to be emphasized to improve the functioning of the scheme. – Reproduced
Financial inclusion, Pradhan Mantri Jan Dhan Yojana, Financial product, Financial literacy, Savings account, Informal institutions.
Banking the unbanked: The performance and impact of Pradhan Mantri Jan Dhan Yojana (PMJDY) schemes on poor households in Bihar - IASSI Quarterly: Contributions to Indian Social Science - 40(1), Jan-Mar, 2021: p.5-28
The paper examines the impact of PMJDY scheme on the poor households’ financial behavior in terms of savings, borrowings, and active use of bank accounts based on a primary survey conducted in eight villages spread over two districts of Bihar during August 2018. The results show that PMJDY programme has been broadly successful as a financial inclusion strategy related to opening bank account among poorer households particularly those engaged in casual labour activities and illiterate. However poor households are still largely dependent on SHGs and money lenders for accessing credit due to lack of suitable saving products. The Probit regression analysis suggests that education plays an important role in the active use of bank account as very few poor households were aware of the overdraft facility, accidental insurance, and life insurance. Hence, the financial literacy programme as well as suitable savings products for the poor need to be emphasized to improve the functioning of the scheme. – Reproduced
Financial inclusion, Pradhan Mantri Jan Dhan Yojana, Financial product, Financial literacy, Savings account, Informal institutions.