Assessment of financial inclusive policy in Indian economy

Dipasha Sharma, Sonali Bhattacharya and Shagun Thukral

International Journal of Ethics and Systems, 2018, vol. 34, issue 3, 304-320

Abstract: Purpose - This study attempts to critically assess one of the financial inclusion policy “Pradhan Mantri Jan Dhan Yojna” introduced by the government of India in 2014. Design/methodology/approach - Number of bank accounts opened (rural, urban and overall) under the policy, total balance in such account and total number of debit cards issued till October, 2017 were taken as the criterion variables. The macroeconomic indicators, infrastructure, literacy, regional dummy and percentage labour participation were taken as predictors. Finally, a State index for financial inclusion under the policy was developed through Normalized Inverse Euclidean Distance using per capita number of accounts, total balance and number of debit cards issued as the parameters. Findings - Andaman and Nicobar, Puducherry and Chandigarh came out to be the top three State indexes for Financial Inclusion under the policy. Status of infrastructure (such as number of roads) was found to be the most significant determining factor. Other factors were labour force participation, poverty and regional disparity. Originality/value - This paper is unique in the sense that financial inclusion policy has been assessed both through its reachability and assessment of its predictors.

Keywords: India; Financial inclusion; Sub national level (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoesp:ijoes-11-2017-0211

DOI: 10.1108/IJOES-11-2017-0211

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