An Analysis of Effectiveness of Financial Inclusion in India under PMMY

Abstract Financial inclusion refers to the easy and affordable availability to financial products and services to all segments of the population, including the poorest of the poor. It guarantees equitable possibilities to acquire financial services and products. This research paper will concentrate on the theoretical aspects of the financial inclusion plans in India. Our focus will be on the financial impact of the Pradhan Mantri MUDRA Yojana (PMMY) on the rural population of India. We will examine PMMY performance by social category and highlight the PMMY’s gender-specific performance . This will shed some light on how well the program is doing both for New and Old Entrepreneurs on the basis of number of accounts opened as well as their effectiveness. Since PMMY is based on loan disbursement, it will analyse PMMY’s performance as a Financial Institution and shed light at the State level. The effort will be to find out in the PMMY sample whether there is a significant correlation between the level of satisfaction and age, gender, social category, educational attainment, annual income, and occupation of the beneficiaries. It will investigate whether there is a noteworthy correlation between the issues encountered by MUDRA loan applicants and the motivation behind the application. This paper intends to provide appropriate methods for creating a system to improve India’s financial inclusion more successfully. Keywords: Financial Inclusion, Inequality, Social Categories