Financial Inclusion Literature Review

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A Term Paper On ________________________________________ PRADHAN MANTRI JAN DHAN YOJNA NATIONAL MISSION ON FINANCIAL INCLUSION ________________________________________ In Partial Fulfillment of the Requirements for the Award of the Degree of Bachelor of Arts in Economics Submitted to: Submitted by: MS. SHIVANI JASWAL Sarthak Mittal Enroll No. A6018214085 AMITY SCHOOL OF ECONOMICS AMITY UNIVERSITY ----Sector 125,…show more content…
Financial inclusion: It has been defined, by the Committee on Financial Inclusion, 2008, as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. It primarily represents access to a bank account backed by deposit insurance, access to affordable credit and the payments system. Literature Review 1. Research Paper on, “Financial Inclusion in Gujarat: A Study on Banker’s Initiatives” by Mr. Nanjibhai D. Ranparia includes study of various financial inclusion and to evaluevaluate progress and current status of financial inclusion of the state. 2. Research Paper on, “An Analytical Study: Relevance of Financial Inclusion For Developing Nations” by Dr. Anupama Sharma and Ms. Sumita Kukreja, The study focuses on the role of financial inclusion, in strengthening the India’s position in relation to other countries economy. For analyzing such facts data for the study has been gathered through secondary sources including report of RBI, NABARD, books on financial inclusion and other articles written by eminent…show more content…
And due to that they have to pay a high interst rate on the money that they had borrowed. Bank accounts for all may solve this problem. Easy access to the banking system (and freedom from scam-artists and moneylenders) can materially lift India`s economic prosperity. Financial accessibility as promised by the PMJDY would certainly help generate higher savings and would help in economic uplift. If bank accounts become the norm, it will also be easier for the Government to directly pay all subsidies into the accounts of the poor, instead of dispensing them through the vast, leaky network of government agencies. Due to that the Government will save huge amount of money and the citizens will get the exact amount of subsidy in their bank account and that too on time. The PMJDY promises an overdraft or credit facility, this would expand the poor`s access to credit, and thereby positively affect well-being, confidence of decision making, and trust in carrying economic activities. Further, insurance coverage of one lakh rupees would help poor account holders mitigate risk and manage shocks. Vulnerability to risk and the lack of instruments to absorb external shocks make it difficult for poor people to rise above the poverty

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