Major Milestones of Financial Inclusion in India – An Analytical Study

Financial inclusion denotes delivery of financial services at an affordable cost to the vast section of the disadvantaged and low income groups. The objective of financial inclusion is to extend the scope of activities of the organized financial system to include within its ambit people with low incomes. Through graduated credit, the attempt must be to lift the poor from one level to another so that they come out of poverty. Self-Help Group (SHG) Bank Linkage Programme has during last two decades covered more than 10.01 crore Indian poor households, making it the largest community based microfinance programme in the world. It is an instrument for financial inclusion and inclusive growth. Under Pradhan Mantri Jan Dhan Yojana (PMJDY), 23.62 Crore accounts opened, in that majority accounts i.e. 14.49 Crore opened in rural areas and 9.13 Crore opened in the urban areas. The present study depends on secondary data. In this study gives a clear picture about the major milestones of financial inclusion in India and also analyze the progress of SHG – Bank Linkage Programme (SBLP) and Pradhan Mantri Jan Dhan Yojana (PMJDY) towards financial inclusion in India. It found that the two milestones are very progressive especially PMJDY results showed that majority of the accounts opened in the rural areas and it helps to improve greater financial inclusion in India. This can be lead to the inclusive growth for the Indian economy.