Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society? Give arguments to justify your opinion. (Not more than 200 words)

Financial inclusion is best assessed through its developmental, institutional and implementation dimensions, with equity and resilience as the governing tests.

PMJDY addresses a foundational barrier to inclusion: poor households’ exclusion from a regulated account, payment channel and formal credit history. Basic accounts, RuPay cards, direct benefit transfer and financial literacy can reduce dependence on moneylenders.

Its contribution is substantial through zero-balance accounts, simplified KYC, banking correspondents and linkage with Aadhaar and mobile phones. DBT reduces leakage and transaction costs, while overdraft and insurance features can provide a modest safety net.

An account alone does not guarantee inclusion. Dormancy, weak banking-correspondent viability, connectivity gaps, biometric failures, low financial literacy and unsuitable credit products can exclude remote, elderly and migrant users. Informal borrowing may still dominate during emergencies.

PMJDY should therefore be integrated with MUDRA, pensions, insurance and livelihood programmes; strengthen grievance redress, local-language counselling, cash-out points and consumer protection. Inclusion should be measured by active use, savings, affordable credit, resilience and women’s control over the account.

Keywords: economy; financial inclusion; banking; PMJDY