Evaluating the Impact of Pradhan Mantri Jan Dhan Yojana (PMJDY) on the Indian Economy: A Paired Sample Analysis Using Secondary Data

The Prime Minster Jan Dhan Yojana (PMJDY) was launched in August 2014 a flagship of financial inclusion by Government Of India which aims to give access to banking facility to every citizen particularly in rural and underserved areas. The study aims to analyses the effectiveness of PMJDY by inferring before and after affect on different banking and economic variables using paired sample t test at 5% significance level using IBM-SPSS Software. Investment deposit ratio, GDP to broad money ratio and deposits in scheduled commercial banks in Uttar Pradesh and Lakshadweep is significantly different before and after PMJDY and ash deposit ratio, credit deposit ratio, bank reserve to demand deposit, narrow money/reserve money, broad money/reserve money, GDP/ narrow money did not show significant changes due to PMJDY. Achieving 100% financial inclusion still remains a challenge for the economy and government can several measures like mechanism to convert zero balance or inactive accounts into active one by engaging with beneficiaries, encourage the beneficiaries to use mobile banking and digital transaction especially in rural areas, encourage some small incentive like cash back or interest to keep the account active, simplify the process of issuing RuPay debit card , passbooks etc…regularly train the banking staff, financial literacy campaign or tie up with NGOs, self-help groups to spread awareness.