Financial Inclusion through the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Its Impact on Household Saving and Investment Patterns

Authors:

Mrs. A.Parkavi, Full Time Research Scholar, Department of Commerce, Sri Ramakrishna College of Arts and Science, Coimbatore.

Dr.D.SasikalaDevi, Head-Department of Commerce, Sri Ramakrishna College of Arts and Science, Coimbatore.

Abstract

            Financial inclusion has become a key driver of inclusive economic growth in developing economies. The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, aims to provide universal access to banking services, particularly for rural and economically weaker sections. This study examines the impact of PMJDY on household saving and investment patterns in rural areas of Tirupur District. The research is based on primary data collected from 120 respondents using a structured questionnaire. Analytical tools such as percentage analysis and paired comparison of savings levels were employed. The findings indicate a significant improvement in formal savings behaviour after the adoption of PMJDY accounts. While traditional investment avenues such as gold continue to dominate, there is gradual adoption of formal financial instruments. The study concludes that PMJDY has positively influenced financial behaviour, though challenges such as low financial literacy and limited awareness of investment options persist.

Keywords: Financial Inclusion, PMJDY, Savings Behaviour, Rural Finance, Investment Patterns, Tirupur