Asian Journal of Multidimensional Research (AJMR)

India is one of the largest and fastest growing economics in present world. But this growth has not only been uneven but also discrete. The Indian economy couldn't bring down unemployment and poverty to tolerable level in spite of its achieving high growth momentum during 2003–04 to 2007–08. Further, a vast majority of the population has remained outside the ambit of basic health and education facilities during this high growth phase. Thus the economy needs inclusive growth especially for rural area. To attaining the inclusive growth there is a need for resource generation and mobilization of financial inclusion which plays a very crucial role in the process of economic growth in rural area. Post-independent India has stressed on progressive institutionalization of rural and agricultural credit. NABARD was created in 1982 to enable a sustainable rural banking infrastructure and to coordinate and direct rural financial institutions in a professional and specialized manner. To gear up the speed of financial inclusion in Indian economy basically rural areas the government has taken steps to transfer subsidies through the bank accounts. Large sum of wage payments under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to the worker accounts are being disbursed through Aadhaar enabled consumer/worker accounts. There is a great rural-urban divide in the spread of bank offices and access to finance from commercial banks and other formal financial sources. The distribution of institutional credit to agriculture by commercial banks has lacked equity. The flow of credit from commercial banks has benefited largely the big farmers in comparison to the small and marginal farmers. Through PMJDY the government tries to achieve the objective of universal financial inclusion in the rural economy of India. The PMJDY has created a positive environment and has provided a big push to the government's objective of universal financial inclusion. In this way, through financial inclusion we can achieve the inclusive growth in rural area in India.