Title: Effectiveness analysis of largest financial inclusion schemes in India

Authors: Anand Pandey; R. Murugesan

Addresses: National Institute of Technology, Tiruchirappalli, Tamil Nadu, 620015, India ' National Institute of Technology, Tiruchirappalli, Tamil Nadu, 620015, India

Abstract: The present study attempts to evaluate the effectiveness analysis of largest financial inclusion (FI) schemes named as Pradhan Mantri Jan Dhan Yojana (PMJDY) and its impact on FI in India across states. In the paper, a two-dimensional index, Jan Dhan index (JDI), was created using a number of accounts, and deposit parameters for 28 states and 8 union territories¹ from 2015 to 2020 to access the status of FI in India. The index was created using the UNDP's methodology for index and applying the min-max method of normalisation and Euclidean distance method. The JDI is a two-dimensional index that captures standardised values of Jan Dhan account and deposit dimensions on the scale of 0 to 1, where 0 indicates lowest presence of Jan Dhan scheme and 1 indicates highest presence of Jan Dhan scheme in FI. The study's finding suggests that most of the high-income states are low in JDI, except few BJP ruled states such as Gujarat and Haryana. On the other hand, the most populated states, or the low-income states such as Uttar Pradesh, Bihar, Chhattisgarh, Rajasthan, Assam, and Jharkhand are high in JDI. Bhartiya Janata Party (BJP) ruled states and union territories (including Jammu and Kashmir) have positive growth in JDI.

Keywords: financial inclusion; FI; banking; PMJDY; Pradhan Mantri Jan Dhan yojana; India.

DOI: 10.1504/GBER.2025.143073

Global Business and Economics Review, 2025 Vol.32 No.1, pp.88 - 108

Received: 17 Dec 2022
Accepted: 02 Jun 2023
Published online: 03 Dec 2024 *

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