PMJDY AND FINANCIAL INCLUSION IN GUJARAT: A CONCEPTUAL REVIEW OF ACHIEVEMENTS AND USAGE GAPS

Dhara  Gohel

Abstract

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program of the Government of India designed to provide universal access to formal banking services. Since its introduction in 2014, the scheme has recorded remarkable progress in terms of outreach and account penetration, with more than 57 crore bank accounts opened nationwide. Despite this achievement, concerns persist regarding the effective utilization of these accounts. Evidence from official statistics, Reserve Bank of India reports, and existing academic literature indicates that a considerable proportion of PMJDY accounts remain dormant or are used primarily for receiving Direct Benefit Transfers, rather than for savings, credit, or regular financial transactions. This highlights a significant gap between financial access and meaningful financial inclusion. The present study is conceptual and descriptive in nature and is based exclusively on secondary data collected from credible sources, including the PMJDY official portal, RBI publications, peer-reviewed research articles, and doctoral theses available on Shodhganga. The paper seeks to analyze the paradox of high account penetration accompanied by low account usage under PMJDY. It further aims to identify the key factors responsible for limited usage, such as low financial literacy, irregular income patterns, digital exclusion, and infrastructural constraints, particularly in rural areas. Based on insights drawn from the literature, the study proposes policy-oriented measuresto promote active account usage and strengthen financial engagement. The paper emphasizes the necessity of shifting the policy focus from access-based financial inclusion to sustained, usage-based financial inclusion to achieve long-termsocioeconomic development.

Pmjdy and Financial Inclusion in Gujarat: a Conceptual Review of Achievements and Usage Gaps

Abstract

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