Assessing Financial Inclusion Across Indian States and Union Territories

Financial inclusion is essential for the effective channelisation of money, allowing individuals to access financial products and services that enhance their financial well-being and contribute to the economic growth of a nation. Governments worldwide are recognising the importance of financial inclusion and are taking initiatives to enhance it. In India, the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014 stands as a significant effort by the government to boost financial inclusion. This study is an attempt to assess financial inclusion across Indian states and union territories, focusing on three key dimensions: automated teller machines (ATM) penetration, insurance penetration and mutual fund penetration. This study is based entirely on secondary data, sourced from the annual reports of the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Association of Mutual Funds in India (AMFI) and Unique Identification Authority of India (UIAI). The findings of this study provide valuable insights into the current state of financial inclusion in India and will contribute to effective policy formation aimed at enhancing financial inclusion across Indian states and union territories.