Impact of Socioeconomic Characteristics on Determinants Influencing Overall Usage Behavior of PMJDY Financial Inclusion Program in India

Abstract

Pradhan Mantri Jandhan Yojana (PMJDY) is a dream project on the financial inclusion program by the government of India for inclusive growth of the economy. This program aims to provide basic banking account and financial services to every households in the country. The study is an endeavor to explore the awareness of various banking services rendered to the account holders of Pradhan Mantri Jandhan Yojana Account (PMJDY). Further the researcher has investigated to find the effect of the demographic characteristics on the determinants of overall usage behavior. An exploratory research design has been adopted for the current study with the help of structured questionnaire administered on the account holders of PMJDY in the rural area of Tamilnadu. Factor analysis is used to extract the factors that could affect the usage behavior of the account holders. Besides a bivariate Pearson correlation is also run to find any significant of association between the distance of the bank and the operation of the bank account. One way analysis of variance was deployed to understand the differences among the various groups of the socio economic characteristics like Age, Gender, Income, and Occupation. Results indicate only Monthly income and Marital groups of the customers like married, unmarried and divorced have different perceptions towards the factors affecting overall usage behavior. Thus the findings of the study will help the banking authorities, and the financial service providers to understand at the grass root level of this scheme and enhance the banking services for the economic upliftment of the rural population in India.