T M Jacob Memorial Government College Manimalakunnu Koothattukulam

T. . M Jacob Memorial Government College, Manimalakunnu, Koothattukulam National Conference on Recent Macroeconomic Developments in India: Issues, Challenges and Remedies – 6 -7, December 2017 FINANCIAL INCLUSION: PROGRESS UNDER THE PMJDY Bittu Ann Chacko Assistant Professor Department of Economics St. Aloysius College, Edathua

• To include everyone into the formal financial system • Engine of Economic growth • PMJDY- August 2014

Objectives • 1. Evaluation of the progress of F I under the PMJDY • 2. Analysis of the trends in Jan Dhan accounts after demonetization • Secondary data • Data from department of Financial Services, Ministry of Finance

Progress • • • No of BSBD accounts till July 2014 = 26 crore No. of accounts from Aug 2014 - Nov 8 2017 = 31 crore No. of beneficiaries highest in rural areas Highest in UP and Lowest in Sikkim Public sector banks took the lead Average deposit balance- Rs. 2200

Trends noticed: • • Increase in the no. of beneficiaries in rural areas- 17% In urban it is- 26 % Overall increase- 20% Increase in the amount of deposits- 49% Highest increase- November 2016 Deposit of all types of banks increased considerably Allahabad Bank(120%), Union Bank of India(600%), Axis Bank Ltd(70%)

What happened to JD accounts after demonetization? Abnormal surge Possibility of misuse of JD accounts Increase in deposits during Oct 2016 - 10 billion November 2016 - 290 billion Decrease in the number of zero balance accounts

Conclusion • • Financial inclusion is a key to reach the path of sustainable growth Helps in the transformation of rural India Ongoing process and huge project Financial literacy Financial responsibility Proper check on the accounts and transactions Collective effort of all stake holders