At present, Indiaisone of the fastest growingeconomiesin theworld. Indiahas been selfsufficientin food. But it is also a fact that hunger still hunts stomach of many poor. Still a sizeable population is living below poverty line. Inequality is as critical an issue as poverty. Growth to be sustainable must be inclusive, where everybodyparticipatesinthe developmentprocess. Poor atthe bottom should become a part of the growth story. The bottom of the pyramid ensures the true resilience in a developmental journey. Research has shown that existing inequalities and f inancial exclusion are barriers to empowerment. Individuals lacking access to formal financial system find it difficult to contribute to the growth process. Out of the many ways to reduce poverty and inequality, Financial Inclusion (FI) is one of the critical starting points. Many countries around the world have started realizing critical role of financial inclusion and have started incorporating it in their policy frameworks by chalking out programmes for quicker access, easy availability and convenient use of formal financial system in a more inclusive way.
Pradhan Mantri Jan Dhan Yojana (PMJDY) is a unique financial inclusion initiative by the present government in India forprovidingaccess tovarious basic financial products andservices like Savings deposit, credit, remittance, insurance and pension coupled with inputs on financial literacy to the unbanked people so that they get included in to the mainstream financial system. So far around 328
million (progress report 3rd Oct 2018 source www.pmjdy.gov.in) people have been included to the financial system through PMJDY. No doubt the sheer number speaks volumes about the programme. A poor by opening an account through Jan Dhan Programme may get an access to the financial system but it has no meaning to him, if he fails to see any improvement in his financial wellbeing.
The purpose of this study is to explore how PMJDY has been able to influence the banking behaviour of the people who entered the banking channel through this unique financial inclusion programme. Opening of an account is the entry point of access to the banking system. But is maintaining of an account itself a sufficient condition to label the customer as a financially well off person? Technology has changed the face of banking and the way the products and services are delivered. Can a person operate in the contemporary banking environment without awareness about the technology as well as products and services? Does awareness impact intention of a customer to use the products and services? Even after securing access, have these account holders developed proper attitude for using the formal financial system for their financial growth? Does the programme enhance the confidence levelof customers? Has their intention touse theproductsand services have influenced their banking behaviour? All these questions have serious implications in the context of analysing the impact of the programme in influencing the banking behaviour of account holders covered through this unique financial inclusion programme
Odisha isone of the fertilestates forundertaking anyresearchworkon financial inclusion becauseof its socio economic and demographic profile and varied forms of poverty. The data in respect of 453 account holders covering eighteen out of thirty districts of Odisha are collected via intervieweradministered questionnaire using a stratified random sampling technique. Data are analysed using variousstatistical tools toassess the impactof PMJDY in influencing the banking behaviour ofaccount holders who got included to formal financial system through financial inclusion programme.
The study finds that while the programme has positively impacted the attitude of account holders, lack of awareness about credit products coupled with trust deficit to get timely loans from banks act as a major barrier. Also, it may perpetuate their age old relationship with money lenders thereby defeating the very purpose of Jan Dhan programme. Similarly while the programme has facilitated their banking behaviour by familiarizing them with technology thereby enhancing their confidence level, discomfort in using mobile banking will remain as a road block in their digital journey. While serviceproviders havebeenable to facilitatetheir meaningful induction to theformal financial system, delay in services and non availability of loans for emergency purposes will make them vulnerable in their new found relationship with banks. Going beyond deposits and withdrawals, the true experience of joining formal banking requires account holders’ higher engagement with variety of products and services offered under the programme.
Various Surveys have been conducted by national and international agencies to assess the impact of financial inclusion programmes in different countries around the world. The present study is a modest attempt to assess the impact of PMJDY on banking behaviour of account holders in terms of analysing their attitude, confidence, financial awareness level and behavioural intention. As a pioneering study, it is expected to provide some insights to all the stake holders in financial inclusion space in general and Jan Dhan programme in particular so that appropriate intervention strategies are formulated to bring about desired change in banking behaviour of poor, marginalized and underprivileged people of India who need to be empowered through the programme to realize their full potential, achieve financial well being and become equal partners in our journey of inclusive growth.
The study also provides future research directions to have more engrossing and meaningful studies for bringing about qualitative changes in the financial health of unbanked people all around the world.
