Financial Inclusion-AReality Check

Financial inclusion is the main concern of any country in terms of economic growth and development. It also enables to channelize the money-flow to the financial system and it ensures access financial services to all levels of economy in country. India's poor are largely excluded from the formal financial system. Even many small industries and businesses find it difficult to access to formal sources of finance and thus are largely excluded from financial system. In year 2014, a national mission has been launched by honorable Prime Minister "PRADHANMANTRI JAN DHAN YOJNA (PMJDY)" scheme which planned to achieve financial inclusion by providing basic banking accounts with a debit card, with insurance. The PMJDY scheme has created an impressive result in the banking sector with regard to eradication of financial exclusion in India. But merely opening of bank accounts will not fulfill the aim of the scheme. For PMJDY to be a successful scheme there should be continuous operation and movements in these bank accounts. The paper discusses present scenario of financial inclusion in India with the specific focus on Gujarat based on a primary research. The research also identifies challenges for financial inclusion in terms of extent of usage of financial services among the respondents. The study indicates that mass financial literacy and awareness among the marginalized sections of people are enormously requisite to achieve financial inclusion. Financial institutions will have to be socially responsible as well as accessible to achieve absolute financial inclusion.