Role of Pradhan Mantri Jan Dhan Yojna in emerging Indian economic power

Abstract

Even after 76 years of independence, a sizable portion of the Indian population is still unbanked, which is a cause for grave concern given the explosive growth of the banking industry in India, both horizontally and vertically. The notion of financial inclusion has been promoted by the Indian government and the Reserve Bank of India in recent years, however the suffering of these financially vulnerable individuals has not shown any discernible impact. In August 2014, Prime Minister Narendra Modi announced a new initiative for lower-income and weaker-section people in his Independence Day speech. This initiative, known as the National Mission on Financial Inclusion (NMFI), aims to alleviate the long-standing financial suffering. The Prime Minister praised the Banks in particular for managing to open a record 1.5 crore new accounts on the first day of the Pradhan Mantri Jan Dhan Yojana on August 28, 2014. This endeavour will undoubtedly significantly contribute to poverty reduction and economic growth, as well as to the mitigation of systemic risk and preservation of financial stability. This essay centres on the significance of financial inclusion and the changes that the Pradhan Mantri Jan Dhan Yojana (PMJDY) would bring about for all parties involved in our nation.