Assessment of financial inclusive policy in Indian economy
International Journal of Ethics and Systems
ISSN: 2514-9369
Article publication date: 15 August 2018
Issue publication date: 17 August 2018
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
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited