The Role Of Pradhan Mantri Jan Dhan Yojana In Financial Inclusion: A Pathway To Economic Empowerment

Abstract

The Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in 2014 has been a transformative initiative aimed at fostering financial inclusion in India by providing universal access to basic financial services, including savings accounts, insurance, and credit facilities, to underserved populations. This article examines the objectives, implementation strategies, and impact of PMJDY, with a particular focus on the role of lead banks in ensuring the scheme's success. It reviews relevant literature on financial inclusion and economic empowerment, highlighting the ways in which PMJDY aligns with global theories on inclusive economic growth. Through its key features, such as zero-balance accounts, financial literacy programs, and an emphasis on digital banking, PMJDY has significantly increased access to financial products, particularly for women and rural populations. Despite its success, the scheme faces challenges related to infrastructure limitations, financial literacy, and technological barriers. The article concludes by offering policy recommendations to address these challenges and enhance the effectiveness of PMJDY in empowering economically marginalized communities.