|
||||||||||||||||||||||||||||||||||||||||||||||
| Empirical Study on Gaddis and Gujjars of Himachal Pradesh Regarding Enablers of Pradhan Mantri Jan Dhan Yojana | ||||||||||||||||||||||||||||||||||||||||||||||
| Paper Id :
17757 Submission Date :
12/05/2023 Acceptance Date :
21/05/2023 Publication Date :
25/05/2023
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. For verification of this paper, please visit on
http://www.socialresearchfoundation.com/researchtimes.php#8
|
||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||
| Abstract | After introducing Pradhan Mantri Jan Dhan Yojana, the formal financial system is heading towards from class banking to mass banking and efforts are made to make everyone part of formal financial system. Still some part of society is financially excluded from the financial formal banking system. A series of factor are causing exclusion from the financial system. Most common factor that causes financial exclusion is geographical distribution of the segments. There are some other factors apart from the socio-economic factors of the tribal communities of the study area which de-motivate people to take formal financial inclusion. The research endows to examine the problem in context to Pradhan Mantri Jan Dhan Yojana. The study aimed to assert the level of awareness about Pradhan Mantri Jan Dhan Yojana based upon the responses of Gaddis and Gujjars and to identify and analyze the level of awareness about Benefits of Pradhan Mantri Jan Dhan Yojana. The study finds that popularity and usage of Pradhan Mantri Jan Dhan Yojana amongst gaddis and gujjars in Himachal Pradesh is very low. | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Keywords | Pmjdy, Financial Inclusion,Financial Exclusion. | |||||||||||||||||||||||||||||||||||||||||||||
| Introduction |
Financial inclusion is concerned with access to formal banking system for all the individuals and the Government of India and putting continuous effort to give access to the excluded segment of the society in the formal financial system. Steps have been taken from nationalization of banks to link all the social welfare programmes with bank account. After introducing Pradhan Mantri Jan Dhan Yojana, the formal financial system is heading towards from class banking to mass banking and efforts are made to make everyone part of formal financial system. Still some part of society is financially excluded from the financial formal banking system. A series of factor are causing exclusion from the financial system. Most common factor that causes financial exclusion is geographical distribution of the segments.
However, the reasons of financial exclusion or low inclusion may vary depending upon the social category of people and geographical remoteness. So, this study analyses the factors causing low inclusion or exclusion among tribal communities of the study area. There are some other factors apart from the socio-economic factors of the tribal communities of the study area which de-motivate people to take formal financial inclusion. The research endows to examine the problem in context to Pradhan Mantri Jan Dhan Yojana.
|
|||||||||||||||||||||||||||||||||||||||||||||
| Aim of study | 1. To assert the level of awareness about Pradhan Mantri Jan Dhan Yojana based upon the responses of Gaddis and Gujjars 2. To identify and analyze the level of awareness about Benefits of Pradhan Mantri Jan Dhan Yojana | |||||||||||||||||||||||||||||||||||||||||||||
| Review of Literature | World Bank (2008)[1] in a survey explains that impoverished
and micro businessmen have to depend upon the informal sources because of
truancy of the inclusive formal financial system and have to invest in
opportunities which are timely and easily accessible despite the fact that they
have to tolerate much higher interest burden in such informal sources. The
report elaborates that financial inclusion can encourage eradication of the
obstacles and achieving financial inclusion in India, with heterogeneous
remarkable segments in rural and unorganised sectors but it requires a high
level of penetration by the formal financial system. Kochaar (2009)[2] has investigated that to promote economic
growth, there is a need to go onwards from opening account, regular savings and
to enable to approach for loans on normal basis for which banks should erect
awareness about financial products and services and facing the problem of
financial exclusion with integrative approach in which specific strategies
would help banks to reach out the financial untouched segment of the society.
In this regard, banks facilities should give extensive exposure to the no
frills accounts etc. to make entry of financial excluded region into financial
inclusion through use of the technological advancement and make bank premises
easy approachable and banks related Electronic Machines (ATMs Machine) user
friendly for the people who are still unaware about technology. Balaji’s study (2014)[3] examines the assess and level of
financial inclusion among selected tribal communities, their level of awareness
about no frills account and the financial services offered by the banks and the
steps taken by the banks towards financial inclusion. The scholar recommends
that for villagers financial inclusion and infrastructure should go hand in
hand for all round tribal development to take place so as to ensure that
villagers have access to health education, shelter, information, technology and
insurances apart from credit behaviour. Shabna (2014)[4] investigated the level of awareness about
financial inclusion forces and examined the extent of financial inclusion among
below poverty line people in households of Kerala in terms of continuous usage
and access of bank account. The scholar finds that the literacy level and
occupation highly influence access and continuous usage of bank account.
Further BPL households access bank account only for enjoying the government
benefits and schemes and are to a certain extent aware about financial
inclusion drives as majority are fully aware of no-frill accounts. Sinha & Azad, (2018)[5] examined The Jan Dhan Yojana of
financial inclusion programme where they appreciate the increase in accounts
because of PMJDY, but doubt that many of these accounts are duplicate, that is,
opened by people who already have bank accounts. The operative status of the
accounts has been felt mostly remaining dormant. More over regarding the access
to credit from formal sources, the post launch period of the scheme according
to them has not shown any increase in the credit-deposit ratio and in the share
of small loans. Fraudulent use of PMJDY accounts is also apprehended by the
authors. They have raised concern on the ability to use and operate bank
accounts which challenge the claims of financial inclusion. They stated that
the PMJDY scheme in its current form is inadequate to address the problem of
financial exclusion.
Peterson and Rachid (2022)[6] demonstrated that there has
been increasing access to financial services and products provided by financial
institutions, which improves financial intermediation and results in positive
economic growth via which financial inclusion promotes economic growth. They
suggest that policy environment should be favourable for financial
participation and economic expansion which is also a priority according to the
policy makers. They argued that there may be a positive welfare impact from the
relationship between financial inclusion and economic growth. This is because
significant levels of financial inclusion would make finance accessible to all members
of society, regardless of income level, giving people the chance to use the
services to improve their welfare and fostering greater social inclusion. |
|||||||||||||||||||||||||||||||||||||||||||||
| Methodology | Factor Analysis (Principal Component Analysis):
It is used for identifying groups or clusters of variables. Factor analysis is used to summarize the information contained in a large number of variables into a smaller number of subsets or factors to determine the influence level of the factors.
|
|||||||||||||||||||||||||||||||||||||||||||||
| Sampling | The research was undertaken on the basis of the primary
data collected from 480 respondents including 98 nomadic and 382 non-nomadic
tribal communities (Gaddis and Gujjars) based
the multi stage random sampling method. Data was taken from six blocks
of Kangra district in Himachal Pradesh. |
|||||||||||||||||||||||||||||||||||||||||||||
| Result and Discussion | The responses are analyzed and discussed as below: 1. Awareness about Pradhan Mantri Jan Dhan Yojana Government of India has launched Pradhan Mantri Jan Dhan
Yojana with the motive to include more andmore number of people in the process
of financial inclusion through opening bank accounts. The scheme is to provide
the opportunity to such strata of the society who are not much natient about
investment benefits are unable to invest due to cumbersome procedures and
conditions of investment. The policy includes services like opening of bank
account, insurance facility, credit facility and pension benefits at affordable
access. Through the policy, the conditional barriers have been tried to be
broken and eased to ensure access of financial inclusion of such communities
who have very limited sources. To propagate the policy, widespread
institutional involvement has been assigned the responsibility through
financial institutions as well as the government bodies. The reaction of the
respondents with regard to awareness about Pradhan Mantri Jan Dhan Yojana is
depicted in the following table 1. Table 1Awareness about Pradhan Mantri Jan Dhan
Yojana
The responses reveal that 67.9 percent of the respondents
are not aware about Pradhan Mantri Jan Dhan Policy which is a government
program despite of the fact that it is characterized by the features of access
to bank at minimum rate or open bank account with zero balance. This indicates
that the organizations involved in propagating about the Programme in the
community could-not successfully accomplish their goal especially when the
communities of gaddis and Gujjars of Himachal Pradesh are talked about. 2. Responses Regarding Benefits of Pradhan
Mantri Jan Dhan Yojana Out of 480 respondents, only 154 have revealed that they
are aware about Pradhan Mantri Jan Dhan Yojana. Amongst 154 respondents who are
aware about the scheme, great majority is of the opinion that it is not
beneficial. It is worth to mention that under the scheme, facilities like use
of Ru-Pay card, Insurance and Pension Benefits are provided. Further, the
users can avail overdraft facility. As per the responses of the informants of
the present research, the benefits of the scheme being felt by the people of
Gaddi and Gujjar communities are analyzed as under: Table 2 Responses Regarding Benefits of
Pradhan Mantri Jan Dhan Yojana
According to the respondents of the present research,
since the percentage of respondents who are aware about the scheme is only
32.1, out of them more than 90 percent are not availing the overdraft facility.
The responses reveal that two-third of them (103 respondents) are using Ru-Pay.
On the other hand, 43.5 percent stated that they are availing insurance
facility and only 29.2 percent are getting pension benefits. Therefore, it can
be implied that the popularity and usage of Pradhan Mantri Jan Dhan Yojana
amongst gaddis and gujjars in Himachal Pradesh is very low (Table 2). 3. Analysis of Awareness about Benefits of
Pradhan Mantri Jan Dhan Yojana (KMO and Bartlett's Test Anaysis) To testify the awareness level about the benefits of
Pradhan Mantri Jan Dhan Yojana for the chosen communities of gaddis and gujjars
in Himachal Pradesh, by applying KMO and Bartlett’s Test Analysis, the results
are as under (Table 3): Table 3 Analysis of Awareness about
Benefits of Pradhan Mantri Jan Dhan Yojana
The above table of KMO and Bartlett’s test output
analyzes whether the responses given are adequate with the data collected or
not. Since the Kaiser-Meyer-Olkin (KMO) value obtained is 0.766 and if this
value is compared with the of KMO value interpretation criteria, it is very
clear that value of KMO i.e. .766 is more than reasonable value level. This
means that the sum of partial correlation is not large in comparison to the sum
of correlation. The sum of analysis variable is 76.6% which indicates that there
is no diffusion in the correlation pattern. Hence, the factor analysis is
appropriate for this data. The above table also shows the Bartlett’s test of
sphericity. The approx. Chi-square value obtained is 797.513 and the
significance value P of the Bartlett’s test of sphericity which is .000 is less
than .005 which reveals that correlation matrix is not an identity matrix. This
indicates that the variables are strongly related with each other and factor
analysis is applicable for this data. |
|||||||||||||||||||||||||||||||||||||||||||||
| Findings | The Study indicates that PMJDY is introduction of the formal banking system among the mass of the society and it shows that financial inclusion has moved in a positive direction as a result of PMJDY. Considering that PMJDY is a national mission on financial inclusion that adopts a non-discriminatory approach towards society and by achieving a significant number of accounts opened under the scheme, not only account opened electronic card (Ru-pay card) also issued and available Zero Balance Account especially to rural and low -income groups, which increases the effectiveness of this scheme which bring about comprehensive financial inclusion of all the households in the country but still Gaddis and Gujjars tribal communities are still not aware about the PMJDY mission and remained unbanked. | |||||||||||||||||||||||||||||||||||||||||||||
| Conclusion | Whereas, this Mission demonstrates a way to bring the unbanked, underprivileged, and vulnerable segments of society into the financial system. Study reveals that tribal communities’ households had not opened bank accounts reflects low rising in banking practices and levels of financial literacy, which will ultimately lead to disparity in the participation in the economic growth across the country. Increased bank branches in rural regions as a result of financial inclusion based on the PMJDY scheme but still tribal groups are not benefitted. | |||||||||||||||||||||||||||||||||||||||||||||
| Suggestions for the future Study | From the above study it is recommended that Government should focus to uplift such tribal communities who are still far away from the mainstream society when we talked about financial inclusion and should plan something which is beyond opening ‘No Frill’ accounts and should clearly mention the role of major stakeholders and proper monitoring mechanism to ensure proper execution of schemes and policies which are available with regard to achieve financial inclusion of the tribal and vulnerable communities. | |||||||||||||||||||||||||||||||||||||||||||||
| References | 1. World bank (2008). Finance for all? Policies and pitfall in expanding access, world bank policy research paper, pp.1121-1126, world bank, Washington DC. Available at sitesresources.worldbank.org.
2. Sameer kochaar (2009), speeding financial inclusion, New Delhi, Academic foundation.
3. R. Balaji and Dr. J. Vijayadurai (2014), “Financial Inclusion among Tribal in Nilgiris District Journal of Radix International Educational and Research Consortium www.rierc.org Volume 3, Issue 6 (June. 2014) ISSN: 2250 – 3994
4. Shabna Mol (2014). Awareness and access of Financial Inclusion drive: A study of below poverty line households in Kerala. Global Journal of Commerce and Management Perspective., Vol.3 (4), 201-204.
5. Sinha, D., & Azad, R. (2018, March 31). Can jan Dhan Yojana Achieve Financial Inclusion? Economic and Political Weekly, LIII (15).
6. Peterson K. Ozili and AdekemiAdemijuSemia Rachid, (2022) Impact of Financial Inclusion on Economic Growth: Review of Existing Literature and Directions for Future Researchhttps://www.emerald.com/insight/publication/issn/0306-8293 Article in International Journal of Social Economics |
|||||||||||||||||||||||||||||||||||||||||||||
