A PROJECT REPORT

ON

PRADHAN MANTRI JAN-DHAN YOJANA: THE

MYTH & REALITY
(SUBMITTED TO UTKAL UNIVERSITY IN PARTIAL FULFILLMENT OF DEGREE OF MASTER OF COMMERCE)

Submitted by:
BIKASH KUMAR NAYAK
ROLL NO.10619V142021
SESSION: 2014-2016

Under The Guidance of:

PROF. JAYANTA KUMAR PARIDA
P. G. DEPT. OF COMMERCE,
UTKAL UNIVERSIT, BHUBANESWAR

P.G. DEPARTMENT OF COMMERCE

UTKAL UNIVERSITY, BHUBANESWAR, ODISHA
2015

DECLARATION

I do hereby declare that the project entitled PRADHAN MANTRI JAN-DHAN

YOJANA:- THE MYTH & REALITY is submitted by me as a partial fulfillment of the
requirements for the degree of Master of commerce, Utkal University in the course curriculum. It
is the original piece of work done by me under the guidance of PROF. JAYANTA KUMAR
PARIDA as my faculty guide and has not been submitted for the awards of any other degree
elsewhere in full or in part.

Date:

BIKASH KUMAR NAYAK

Place:

Roll no. 10619V142021

P.G .Dept. of Commerce,
Utkal University

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be incomplete
without mentioning people who made it possible,

whose encouragement

and consistent

guidance crowned my effort with success.

I express my deep sense of gratitude and indebtedness to my guide, PROF. JAYANTA
KUMAR PARIDA, P.G. Dept. Of commerce, Utkal University, Bhubaneswar for his
suggestions, constant inspiration and prompt guidance to carry out and complete this study.
Last but not the least I especially thank to Head Of Departments and all my teachers who have
helped me directly or indirectly to complete this project. I express my profound thanks to my
seniors as well as my family members and friends for their valuable suggestions and constant
encouragement.

Date:
Place:

BIKASH KUMAR NAYAK

Roll no. 10619V142021

Executive Summary

Even after 60 years of independence, a large section of Indian population still

unbanked. In the recent years the government and Reserve Bank of India has been
pushing the concept and idea of financial inclusion. The financial inclusion plan aims at
providing easy access to financial services to those sections of the society who are deprived
of its so far at affordable cost thereby bringing them into the mainstream financial sector.
RBI set up the Khan Commission in 2004 to look into financial inclusion and the
recommendations of the commission were incorporated into the mid-term review of the
policy and urged banks to review their existing practices to align them with objectives of
financial inclusion.
Honorable Prime Minister of India, Sri Narendra Damodar Das
Modi announced this scheme for comprehensive financial inclusion on its first
Independence Day speech on 15 August 2014. The scheme was formally launched on 28
August 2014 with a target to provide universal access to banking facilities starting with
Basic Banking Accounts with overdraft facility and RuPay Debit card with inbuilt accident
insurance cover one lakh and RuPay Kisan card & in next phase, micro insurance & pension
etc. will also be added.
An attempt is made in this paper to study and cover the followings
An overview of Financial Inclusion
Latest trends being implemented for Financial Inclusion by PMJDY
Critically analysis the PMJDY and to what extend it achieves the Financial Inclusion
Detailed analysis of benefits offered under PMJDY
Analyze PMJDY really achieves financial inclusion or leads to corruption

ABBREVIATIONS

FY

PMJDY
GOI

Financial Year
-

Pradhan MANTRI Jan Dhan Yojana

Government of India

BOB

Bank Of Baroda

PSB -

Public Sector Bank

RRB -

Regional Rural Bank

NPCI -

National Payment Corporation of India

DFS -

Department of Financial Services

NUUP -

National Unified USSD Platform

IMPS -

Immediate Payment System

CTS ---

Cheque Truncation System

ECS --

Electronics Clearing System

FI --

Financial Inclusion

FIF ---

Financial Inclusion Fund

BC -

Bank Mitra(Business Correspondence

SLBC--

State Level Banking Committee

KYC ---

Know Your Customer

CBS -

Core Banking Solution

IDRBT -

Institute of Development & Research on Banking Technology

POS -

Point Of Sale

CONTENTS

PARTICULARS

PAGE NO.

Certificate

Declaration

II

Acknowledgement

III

Executive Summery

IV

Abbreviations
List of Tables, charts &figures

V
VI

CHAPTER1: INTRODUCTION1 - 8
1.1 Context
1.2 Pradhan Mantri Jan Dhan Yojana: An Overview
1.3 Importance of the topic
1.4 Review of literature
1.5 Research gap & statement of the problem
1.6 Objectives of the study
1.7 Research methodology
1.7.1 Sources of the data
1.7.2 Scope of the study
1.7.3 Period of the study
1.7.4 Tools and techniques
1.8 Relevance of the study
1.9 Limitation of the study
1.10 Chapter Plan
CHAPTER 2: FINANCIAL INCLUSION: AN OVERVIEW 9 - 38
2.1 Introduction
2.2 Financial Inclusion: Background
2.3 Objectives of financial inclusion
2.4 Role of Stakeholders in Financial Inclusion
2.5 Needs of Financial Inclusion

2.6 Mainstream of financial services for financial inclusion

2.7 Policy Developments
2.8 Present status of financial inclusion in India
2.9 Role of Technology in financial inclusion
2.10 Impact of Financial Inclusion on Household
2.11 Comparative analysis of Financial Inclusion with Reference to foreign country
2.12 Conclusion
CHAPTER 3: PMJDY: A FUNDAMENTAL ANALYSIS..39 - 62
3.1 Introduction
3.2 Aim of Pradhan Mantri Jan Dhan Yojana
3.3 Pradhan Mantri Jan Dhan Yojana: A Snapshot
3.4 Strategy of Pradhan Mantri Jan Dhan Yojana
3.5 Challenges before Pradhan Mantri Jan Dhan Yojana
3.6 Implementation of PMJDY
3.7 Monitoring Mechanism
3.8 Media & Publicity
3.9 Comparative analysis with SWABIMAAN
3.10 Financial Inclusion under Pradhan Mantri Jan Dhan Yojana: A case study of Bank of
Baroda
3.11 Conclusion
CHAPTER 4: DATA ANALYSIS.....63 - 81
CHAPTER 6: FINDINGS & CONCLUSION.82 - 85
5.1 Major Findings
5.2 Suggestions
5.3 Scope for future study
5.4 Conclusion

Annexure
BIBILIOGRAPHY........................86 - 87

LIST OF FIGURES, TABLES & CHARTS:

List of Tables
This table includes titles and page numbers of all tables.
Table No

Title

Page No

2.1

No. of branches of SCB as on 31st march 2013

28

2.2

No. of functioning branch of SCB during five years

29

2.3

No. of branches opening by SCB in five year

29

2.4

No. of villages and average population per branch

29

2.5

No. of branches of SCB over the year

30

2.6

No. ATM in the country as on 31st march, 2013

30

2.7

Comparative analysis of financial Inclusion

37

3.1

No. of accounts opened in PMJDY scheme till 5th August 48

2015

3.2

Comparative analysis of PMJDY with SWABHIMAAN

57

4.1

Total no. of account holder under PMJDY by PSB

63

4.2

PSB provided Rupay card under PMJDY

65

4.3

Total no. of account holders under PMJDY by PSB

65

4.4

4.6

Total amount of balance of account holders opened under 66

PMJDY
Total no. of accounts with zero balance amount in PMJDY by 67
PSB
68
No. of individual aware about PMJDY

4.7

Status of account open under PMJDY

69

4.8

Accounts open in different category banks

70

4.9

Facilities of PMJDY

71

4.10

Most like facilities of PMJDY

72

4.11

Comparative analysis of PMJDY with SWABHIMAAN

73

4.12
4.13

No. of accounts opened by individual and their family 74

members
Develop savings habit through PMJDY
75

4.14

Distance of bank from home

4.5

77

4.15

Frequency of transact with banks

78

4.16

Maintenance of minimum balance or zero balance in account

79

4.17

Satisfaction level of people of PMJDY services

80

LIST OF CHARTS & GRAPHS:

This table includes titles and page numbers of all charts and graphs.
Serial No

Title

Page No

2.1

Availability of Banking services

27

2.2

Source of financing

30

3.1

Trends of zero balance account

48

4.1

No. of individual aware about PMJDY

69

4.2

Status of account open under PMJDY

70

4.3

Accounts open in different category banks

71

4.4

Facilities of PMJDY

72

4.5

Most like facilities of PMJDY

73

4.6

Comparative analysis of PMJDY with SWABHIMAAN

74

4.7

No. of accounts opened by individual and their family members 75

4.8

Develop savings habit through PMJDY

76

4.9

Distance of bank from home

77

4.10

Frequency of transact with banks

78

4.11
4.12

79
Maintenance of minimum balance or zero balance in account
Satisfaction level of people of PMJDY services

80

LIST OF FIGURES:
Serial No

Title

Page No

2.1

Household access to financial services

20

2.2

Impact of financial inclusion on Households

36

3.1

Features of PMJDY

42

3.2

Six pillars of PMJDY

43

CHAPTER 1

INTRODUCTION

CHAPTER 2
FINACIAL
INCLUSION: AN
OVERVIEW

CHAPTER 3
PRADHAN MANTRI
JAN DHAN YOJANA:
A FUNDAMENTAL
ANALYSIS

CHAPTER 4
DATA
FIELD

ANALYSIS:
STUDY

KENDRAPARA
DISTRICT

OF

CHAPTER 6

FINDINGS,
SUGGESTION &
CONCLUSION