PERFORMANCE OF FINANCIAL INCLUSION AMONG POOR HOUSEHOLDS THROUGH PRADHAN MANTRI JAN DHAN YOJANA (PMJDY) IN COIMBATORE DISTRICT OF TAMIL NADU

Abstract

The present research work analyse the performance of financial inclusion among poor households through the implementation of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in Coimbatore district, Tamil Nadu. In the pursuit of inclusive growth, financial services historically favored the high and middle classes, posing challenges for the impoverished. The PMJDY, initiated in 2014, aimed to bridge this gap by connecting the underprivileged to mainstream financial systems. The study adopts a multistage random sampling technique, strategically dividing Coimbatore into zones and selecting SBI banks in rural (Sulur) and urban (Peelamedu) regions. Findings from the survey of 160 respondents between March and June 2023 showcase a positive perception of PMJDY's impact. Notably, the provision of Smart card/ATM card facilities received the highest mean score, indicating the beneficiaries' appreciation for the accessibility these cards bring to financial transactions. Direct income transfers to bank accounts, income-generating activities, and access to direct benefit transfers for schemes like LPG and MGNREGA also garnered significant mean scores. Multivariate tests affirm the substantial effect of PMJDY on loan facilities, showcasing its transformative role in reshaping the accessibility of credit. The study further explores the scheme's impact on different loan types, revealing significant positive effects on Educational Loans, Housing Loans, and Vehicle Loans. However, challenges persist, with low awareness, limited financial literacy, and accessibility issues emerging as prevalent concerns. The study concludes with policy suggestions to address these challenges, emphasizing targeted awareness campaigns, financial education programs, and infrastructure development to enhance the overall effectiveness of PMJDY in promoting financial inclusion among the poor households of Coimbatore district.

Keywords: Financial inclusion, Poorer Households, Loan amount, Income amount, Bank account, economic growth