Role of Pradhan Mantri Jan Dhan Yojana in the Financial literacy of West Bengal

This study shows Pradhan Mantri Jan Dhan Yojana (PMJDY) can improve financial literacy in West Bengal. The study is founded on the survey of 1000 participants, 500 of whom have PMJDY accounts and 500 participants have regular bank accounts as a control group. The research measures awareness, usage trends and financial behaviour to measure scheme effectiveness. The results demonstrate that PMJDY has made a considerable contribution to the growth in the number of bank accounts; however, it has not produced a substantial effect on enhancing financial literacy and active use of banking services. Some of the main features like overdraft and insurance benefits are unknown to a high percentage of the beneficiaries. Also, there are a number of inactive or infrequently used accounts. The paper concludes that financial inclusion efforts should focus on awareness, education and behaviour change to have significant results. The success of PMJDY in the long run should be supported by fortifying financial literacy programs.