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Assessment of financial inclusive policy in Indian economy

Dipasha Sharma (Symbiosis Centre for Management and Human Resource Development, Symbiosis International (Deemed University), Pune, India)
Sonali Bhattacharya (Symbiosis Centre for Management and Human Resource Development, Symbiosis International (Deemed University), Pune, India)
Shagun Thukral (Symbiosis Centre for Management and Human Resource Development, Symbiosis International (Deemed University), Pune, India)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 15 August 2018

Issue publication date: 17 August 2018

165

Abstract

Purpose

This study attempts to critically assess one of the financial inclusion policy “Pradhan Mantri Jan Dhan Yojna” introduced by the government of India in 2014.

Design/methodology/approach

Number of bank accounts opened (rural, urban and overall) under the policy, total balance in such account and total number of debit cards issued till October, 2017 were taken as the criterion variables. The macroeconomic indicators, infrastructure, literacy, regional dummy and percentage labour participation were taken as predictors. Finally, a State index for financial inclusion under the policy was developed through Normalized Inverse Euclidean Distance using per capita number of accounts, total balance and number of debit cards issued as the parameters.

Findings

Andaman and Nicobar, Puducherry and Chandigarh came out to be the top three State indexes for Financial Inclusion under the policy. Status of infrastructure (such as number of roads) was found to be the most significant determining factor. Other factors were labour force participation, poverty and regional disparity.

Originality/value

This paper is unique in the sense that financial inclusion policy has been assessed both through its reachability and assessment of its predictors.

Keywords

Acknowledgements

The authors express their sincere thanks and gratitude for the comments and suggestions of the anonymous reviewers and editor which has helped in improving the quality of the paper.

Citation

Sharma, D., Bhattacharya, S. and Thukral, S. (2018), "Assessment of financial inclusive policy in Indian economy", International Journal of Ethics and Systems, Vol. 34 No. 3, pp. 304-320. https://doi.org/10.1108/IJOES-11-2017-0211

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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