FINANCIAL EMPOWERMENT OF WOMEN

THROUGH SCHEMES FOR WOMEN IN INDIA

A Research Project Report submitted in partial fulfilment of the

requirements for the Degree of

Bachelor of Commerce (Finance and Accountancy)

CHRIST (Deemed to be University), Bangalore Central Campus

Submitted By

Ria Bafna (2112065)

Under the Guidance of

Dr. Itishree Pattnaik

Department of Professional Studies
School of Commerce, Finance and Accountancy

Academic Year 2023-24

i
 Declaration

I, Ria Bafna (2112065) hereby declare that this research project titled “FINANCIAL
EMPOWERMENT OF WOMEN THROUGH SCHEMES FOR WOMEN IN INDIA” is
an original research project study, conducted under the guidance of Dr. Itishree Pattnaik,
Department of Professional Studies, CHRIST (Deemed to be University), Bangalore Central
Campus.

I further declare that this has not been previously formed the basis of the award of any degree,
diploma or other similar title of recognition

Place: Bengaluru

Date: 26.03.2024

Ria Bafna

(2112065)

ii
 Certificate by Head of Department

This is to certify that Ria Bafna (2112065) a Bonafide student of Bachelor of Commerce
(Finance and Accountancy) Programme studying in CHRIST (Deemed to be University),
Bangalore Central Campus have prepared and submitted a research project report titled
“FINANCIAL EMPOWERMENT OF WOMEN THROUGH SCHEMES FOR
WOMEN IN INDIA” in partial fulfillment for the requirement of Bachelor of Commerce
(Finance and Accountancy) Programme of CHRIST (Deemed to be University) for the
academic year 2023-24.

Place: Bengaluru

Date: 26.03.2024

Prof. Soumya V.
Coordinator
Department of Professional Studies

iii
 Certificate by Guide

This is to certify that this research project report titled “FINANCIAL EMPOWERMENT
OF WOMEN THROUGH SCHEMES FOR WOMEN IN INDIA” submitted to CHRIST
(Deemed to be University), Bangalore Central Campus in partial fulfillment for the requirement
of Bachelor of Commerce, and is an original and independent work carried out by Ria Bafna
(2112065) under my guidance and supervision.

This has not been previously formed the basis of the award of any degree, diploma or other
similar title of recognition.

Place: Bangalore

Date: 26.03.2024

Dr Itishree Pattnaik
Department of Professional Studies
CHRIST (Deemed to be University)
Bangalore Central Campus

iv
 ACKNOWLEDGEMENT

The research project undertaken by us has enabled us to gain immense knowledge about the
topic chosen. We are grateful to those, without whose constant support and encouragement it
would have been impossible for us to reach this far. Therefore, we take this opportunity to
express our deepest gratitude.

I would like to thank the Management of CHRIST (Deemed to be University), Bangalore

Central Campus for their undisrupted assistance. We are profoundly thankful to Dr. Tomy K
Kallarakal, Dean, School of Commerce, Finance and Accountancy, Dr. Biju Toms, Director,
School of Commerce, Finance and Accountancy, Prof. Soumya V., Coordinator, Department
of Professional Studies, and Dr. Umasankar M., Programme Coordinator, B. Com (F&A) for
permitting me to pursue my research work.

I am deeply indebted to my teacher and guide Dr Itishree Pattnaik, Department of

Professional Studies, School of Commerce, Finance and Accountancy, CHRIST (Deemed to
be University), Bangalore for his scholarly guidance, fruitful discussions, critical evaluation,
consistent encouragement and constant support in the preparation of the report. I acknowledge
the true pleasure and blessing of carrying out the research under his guidance with gratitude.

I recount my beloved Parents' wishes in the march of my academic endeavors. I would also
like to extend our hearty gratitude to those who have always been around us for support, family
members, friends, and everybody else for being patient and supportive throughout the
research.

Ria Bafna
2112065

v
 TABLE OF CONTENTS

SL. NO. CONTENTS PAGE

NUMBER

1. CHAPTER 1 1-5

INTRODUCTION

1.1 Introduction 2

1.2 Introduction to the concept of Financial Empowerment 2

1.3 Introduction to the concept of Women’s Empowerment 3

1.4 Process of Women Empowerment 3

1.5 Women Empowerment in India 4

1.6 Relationship between Economic Development and Women’s 4

Empowerment

1.7 Importance of Women Empowerment 5

1.8 Conclusion 5

2. CHAPTER 2 6-12

REVIEW OF LITERATURE

2.1 Review of literature 7

2.2 Research Gap and Conclusion 12

3. CHAPTER 3 13-16

RESEARCH METHODOLOGY

3.1 Introduction 14

3.2 Statement of problem 14

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3.3 Need for study 15

3.4 Scope of the study 15

3.5 Objectives of the Study 16

3.6 Research Methodology 16

4. CHAPTER 4 17-25

BASIC DESIGN

4.1.1 Introduction to Mudra Scheme 18

4.1.2 Objective of Mudra Scheme: 18

4.1.3 Beneficiaries of PMMY scheme 20

4.1.4 Benefits of Mudra scheme to women 20

4.1.5 Eligibility criteria for Mudra Scheme 21

4.1.6 Importance of women in PMMY 21

4.2.1 Introduction to Pradhan Mantri Jan Dhan Yoyana 22

4.2.2 Benefits under PMJDY (https://pmjdy.gov.in/scheme) 22

4.2.3 Key role of PMJDY in the financial inclusion of women 23

4.2.4 Importance of women in PMJDY 24

4.2.5 Challenges faced by women 25

5.2.4 Impact of PMJDY 25

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 5. CHAPTER 5 26-41

ANALYSIS

5.1.1 Introduction on Mudra Scheme 27

5.1.2 Evolution of Mudra Scheme 27

5.1.3 Implementation of Mudra Scheme 29

5.1.4 Impact of Mudra Scheme 29

5.2.1 Introduction on Pradhan Mantri Jan-Dhan Yojana 34

5.2.2 Evolution of PMJDY 35

5.2.3 Implementation of PMJDY 36

6. CHAPTER 6 41-49

CONCLUSION

6.1.1 Challenges faced by Mudra Scheme 42

6.1.2 Strengthening of Mudra Scheme 43

6.2.1 Challenges faced by Pradhan Mantri Jan-Dhan Yojana 45

6.2.2 Strengthening of Pradhan Mantri Jan-Dhan Yojana 47

6.3 Comparative analysis of both the schemes 48

BIBLIOGRAPHY xii-xvi

ANNEXURE xvii

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Annexure - Annual Reports 2023 xviii-xxii
PMMY – Pradhan Mantri Mudra Yojana
PMJDY – Pradhan Mantri Jan-Dhan Yojana

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 LIST OF TABLES

TABLE DESCRIPTION PAGE NO.

NO.

1. Progress of Pradhan Mantri Mudra Yojana Since Inception 30

2. Employment Created across various schemes 31

3. Cumulative for 8 years since Inception 32

4. Beneficiaries of mudra Scheme of year 2022-2023 33

5. Scheme wise allocation to women Borrowers 33

6. Pradhan Mantri Jan-Dhan Yojana 36

7. Growth Rate of Bank Accounts under Pradhan Mantri Jan Dhan 37

Yojana (PMJDY)

8. Growth Rate of Deposits under PMJDY 39

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 ANALYSIS OF FINANCIAL SCHEMES IN INDIA

ABSTRACT

This report critically analyzes the Pradhan Mantri Mudra Yojana (PMMY) and Pradhan Mantri
Jan Dhan Yojana (PMJDY) for their impact on economic empowerment of women in India.
The research uses a mixed methods approach combining quantitative data analysis with a
qualitative case study to provide a comprehensive assessment of the effectiveness of two
schemes in promoting women's access to financial services and financial independence.
PMMY aims to facilitate unsecured lending to small and micro enterprises including for
women's enterprises. Through analysis of loan disbursement data, the report highlights the
significant contribution of PMMY to empowering women entrepreneurs. Case studies from
different regions show how women have used PMMY loans to invest in various sectors such
as agriculture, handicrafts and retail, resulting in improved livelihoods and socio-economic
impact. On the other hand, PMJDY focuses on promoting of financial inclusion, providing
households with access to basic banking services, insurance and pension systems, with a special
focus on marginalized communities, including women. The report examines PMJDY
enrollment and utilization statistics and assesses the system's impact on women's economic
inclusion. The case studies further illustrate how female PMJDY beneficiaries have gained
confidence in managing their finances, accessing credit and using public welfare systems.
Despite these achievements, the report recognizes some challenges and areas for improvement.
The report recommends policy measures such as targeted financial literacy programs, gender-
sensitive loan products and enhanced information efforts to address these issues and ensure
women's equal access to financial resources. The analysis highlights the positive impact of
PMMY and PMJDY promotes the economic empowerment of women in India. It underlines
the need to continue efforts to remove barriers to women's economic inclusion and promote
gender-responsive policies that support women's economic lives and ultimately promote
inclusive and sustainable development.

Keywords: PMJDY, PMMY, Women Financial Empowerment, Schemes in India, Women

Beneficiaries, Financial inclusion

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 CHAPTER - 1
INTRODUCTION

1
1.1 Introduction

Empowerment encapsulates the essence of agency, autonomy, and the ability to effect change,
enabling individuals to navigate challenges and advocate for equitable outcomes. Financial
literacy, crucial within the empowerment paradigm, empowers individuals to make informed
financial decisions, manage resources effectively, and participate actively in economic spheres.
(Mahbub, 2021)

Economic empowerment is critical for individuals and households because it enables them to
meet their basic needs, invest in education and health, accumulate assets and deal with crises,
all of which contribute to overall well-being and upward mobility. Governments, including the
Government of India, are working to empower citizens economically through initiatives such
as PMMY and PMJDY, which provide access to credit, banking services and financial literacy
programs, laying the foundation for inclusive economic growth and social development.
(Mishra D. et at , 2024)

1.2 Introduction to the concept of Financial Empowerment

Financial empowerment entails equipping individuals with knowledge, skills, and resources to
manage their finances and pursue goals. It begins with education on budgeting, saving,
investing, and debt management, followed by skill development to apply financial knowledge
effectively. Access to banking, savings, credit, insurance, and tailored investments is vital.
Financial inclusion ensures marginalized groups have access to services, overcoming barriers
like documentation and discrimination. Positive behaviors like disciplined saving and
responsible borrowing are encouraged, fostering resilience against unexpected expenses. True
empowerment involves ownership and control over finances, including asset accumulation.
Community engagement and advocacy drive systemic change for financial inclusion and
protection. This holistic process enhances well-being, economic security, autonomy, and
societal participation. (Lusardi, 2019)

2
1.3 Introduction to the concept of Women’s Empowerment

Women's empowerment is essentially the process of raising the economic, social and political
status of traditionally disadvantaged women in society. It is a process to protect them from any
kind of violence. The empowerment of women involves creating a social, political environment
where women can breathe without fear of oppression, exploitation, fear, discrimination and
general persecution associated with being a woman in a traditionally male-dominated structure.
Women constitute almost 50 percent of the world's population, but India showed a
disproportionate sex ratio, where the number of women was comparatively less than that of
men. As for their social status, they are not everywhere treated as equal to men. In Western
societies, women have equal rights and status with men in all areas of life. But gender disability
and discrimination still exist in India. Women's empowerment is the stage of empowering
women to understand their rights and fulfill their responsibilities to themselves and others as
effectively as possible. (Sobha, 2021)

1.4 Process of Women Empowerment

The process of women's empowerment is multifaceted and involves various interconnected

strategies and actions aimed at addressing the systemic barriers that limit women's rights,
opportunities, and agency. Promoting women's empowerment entails a multifaceted approach.
Education and Awareness challenge stereotypes and ensure equal access to quality education.
Legal and Policy Reform advocate for laws safeguarding women's rights and addressing
gender-based issues. Economic Empowerment offers avenues for income generation,
entrepreneurship, and employment. Political Participation supports women's involvement in
decision-making. Health and Well-being ensure comprehensive healthcare access. Social
Support fosters networks and mentorship. Media Representation challenges stereotypes.
Cultural Norms are addressed through community engagement. Research and Data inform
evidence-based policies. Collaboration fosters coordinated efforts. Together, these initiatives
enhance women's autonomy (Lwamba, Kupfer, et al2022)

3
1.5 Women Empowerment in India

Empowerment of women would mean equipping women to be economically independent, self-

sufficient, positively respected to face difficult situations and able to participate in development
activities. In India, various financial schemes actively empower women. The Pradhan Mantri
Jan Dhan Yojana promotes financial inclusion through savings accounts, credit, insurance, and
pensions, particularly targeting unbanked women ( https://pmjdy.gov.in/).The MUDRA
Yojana offers financing for micro-enterprises, facilitating business establishment and
expansion for women. Stand-Up India provides loans to encourage female entrepreneurship.
Women Self Help Groups (SHGs) in rural areas support collective savings, credit access, and
skill development. The Sukanya Samriddhi Yojana encourages long-term savings for girl
children's education and marriage expenses, promoting financial security early
on(https://transformingindia.mygov.in/scheme/sukanya-samriddhi-yojana/).These
initiatives collectively enhance women's economic independence, financial inclusion, and
empowerment across India.(Kumar,2023) The most positive development in the last few years
has been the increasing participation of women in Panchayati Raj institutions. Many women
representatives were elected at the village council level. Women are also involved in human
development issues of child rearing, education, health and gender equality. Many of them
started producing and marketing various cottage products - pickles, tailoring, embroidery etc.
The economic empowerment of women is now seen as essential for the progress of the country;
Therefore, the issue of economic empowerment of women is of utmost importance for political
thinkers, social thinkers and reformers. (Sobha,2021)

1.6 Relationship between Economic Development and Women’s

Empowerment

There is a two-way relationship between economic development and women's empowerment,

defined by improving women's access to the elements of development - especially health,
education, income opportunities, rights and political participation. Unidirectional development
alone can have a significant impact on inequality between men and women. On the other hand,
continued discrimination against women can hinder development. Gender differences are more
evident among the poor both within and between countries. Despite progress, disparities in

4
enrollment remain, particularly in poorer and more isolated communities. The share of women
in the workforce has increased and wage differentials have decreased in some areas. However,
differences in life expectancy still exist, and the number of women in developing countries is
increasing than that of men. Although economic growth can positively affect gender equality
by reducing poverty and increasing opportunities, targeted policies aimed at the advancement
of women are essential. While development can foster women's empowerment, specific
interventions are critical to address entrenched inequalities and ensure inclusive progress.
(Duflo, 2011)

1.7 Importance of Women Empowerment

The empowerment of women is essential for the health and social development of families,
communities and countries. When women live safe, satisfied and productive lives, they can
reach their full potential. increase your skills in the workforce and raise happier and healthier
children. They can also help promote sustainable economies and benefit society and humanity
as a whole.
Empowering women is essential to the health and social development of families, communities
and countries. Girls' empowerment is crucial for achieving economic, political, and social
progress. (https://www.worldvision.com.au/womens-empowerment#topics)

1.8 Conclusion

Women's empowerment in India is a multifaceted effort to increase women's participation in

decision-making, improve their socio-economic status and promote gender equality. This
includes challenging established social norms and structures that prevent women from
promoting and advancing their rights and opportunities in various fields. It also includes
empowering women to participate fully in economic, social and political spheres. It empowers
women to make choices about their lives, breaks down barriers that limit their opportunities,
and ensures equal resources and opportunities. This includes addressing issues such as gender
discrimination, violence against women, unequal access to education and healthcare, and
economic disparities.

5
 CHAPTER - 2
REVIEW OF LITERATURE

6
2.1 Review of literature

Empowerment of women has not only become a global issue in determining the status of
women, but economic empowerment of women has been regarded as a sine-qua-non of
progress and development for a country. In line with this policy, the Government of India
established the National Mission for Empowerment of Women in 2010 with the aim of
converging the systems/programmes of various Indian Ministries/Government Ministries and
State Governments/UN Administrations. If women are empowered economically, culturally
and socially it can be expected that the development process of a country will be accelerated
within a short period of time. (Women empowerment is not only a national goal but also a
global agenda: Vice President )

Every Five-Year Plan since the early 1950s has had certain policies which specially aimed at
increasing women’s welfare. The Sixth Five Year Plan (1980-85) may be taken as a landmark
for the cause of women as the concept of ‘women and development’ was introduced for the
first time in this plan. Taking women empowerment as the central theme, the vision of the 12th
Plan stated ‘empowered women living with dignity and contributing as equal partners in
development in an environment free from violence and discrimination’. The National Policy
for Empowerment of Women was declared by the Government of India in 2001 to eliminate
all types of discrimination against women and to ensure justice, besides empowering women
both socially and economically. In line with this policy, the Government of India established
the National Mission for Empowerment of Women in 2010 with the aim of converging the
systems/programmes of various Indian Ministries/Government Ministries and State
Governments/UN Administrations. When women are economically empowered through access
to education, financial resources, and employment opportunities, they contribute significantly
to household income and overall economic growth, while fostering gender equality and social
progress
(https://wcd.nic.in/sites/default/files/National Policy for Empowerment of Women
2001.pdf)

Economic empowerment refers to the ability of individuals and communities to control and
benefit from their economic resources and opportunities. It involves gaining access to

7
education, financial resources, employment, and entrepreneurial opportunities to improve one's
economic status and overall well-being. Economic empowerment is necessary to reduce
poverty, inequality, and dependency, while promoting sustainable development and social
inclusion. By empowering individuals economically, they can achieve financial independence,
make informed decisions, and actively contribute to the growth and stability of their
communities and economies, fostering a more equitable and prosperous society.

Macroeconomic policies and poverty reduction programs are designed to address the needs and
challenges of women who are often exposed to intra-household and social discrimination and
live below the poverty line. ladies Actions are taken to mobilize poor women and bring services
closer, offering them various economic and social opportunities and the necessary support
resources to improve their skills (Sama, 2017). To improve women's access to credit
Consumption and production, the establishment. of new and strengthening of existing
microcredit mechanisms and microcredit institutions are implemented to increase the
availability of credit. Other measures would also be taken to ensure an adequate flow of credit
through existing financial institutions and banks so that all women below the poverty line can
easily access credit. When planning and implementing macroeconomic and social policies,
women's perspectives are taken into account with the institutionalization of women.
participation in such processes.

Financial literacy, a key skill recognized by the OECD and endorsed in G20 meetings (OECD,
2013), extends beyond mere financial education or knowledge. (Huston,2010) defines it as
“knowledge acquisition and its application” and “the effective utilization of personal financial
management”.In today’s world, where life expectancy, cost of living, and complicated financial
products are on the rise, financial literacy is of paramount importance. Numerous global studies
highlight the prevalence of financial illiteracy and the need for urgent
interventions.Individuals’ financial literacy levels are affected by socio-economic and
demographic variables such as sex, age, marriage, profession, number of dependent children,
educational level (personal and parental), income, and financial behavior.This means that
financial literacy is closely linked to financial behavior, and is an essential part of personal
financial management in today’s complex financial environment Improving financial literacy
requires not only having financial knowledge, but also having the ability to apply it wisely to
make sound financial decisions. (https://www.oecd.org/daf/fin/financial-

8
education/TrustFund2013_OECD_INFE_Fin_Lit_and_Incl_SurveyResults_by_Countr
y_and_Gender.pdf )

In research exploring financial literacy, investigators focus on key indicators to gauge

individuals' understanding and management of financial concepts. Globally, these indicators
encompass various dimensions, including individuals' comprehension of fundamental financial
principles such as interest rates, inflation, and risk diversification. Additionally, researchers
assess individuals' ability to manage personal finances, make informed decisions about
investments, and navigate financial products and services effectively. Understanding financial
behaviors, decision-making processes, and access to financial resources are also crucial areas
of examination (Lusardi,2019).

In the Indian context, researchers delve deeper into specific indicators tailored to the country's
unique socio economic landscape. This includes evaluating individuals' digital financial
literacy, given the increasing prevalence of digital finance in India. Moreover, awareness of
government-sponsored financial inclusion schemes and their impact on financial literacy is a
significant focus. Cultural and social factors play a pivotal role in shaping financial behaviors
and attitudes, necessitating exploration within research frameworks. Furthermore,
understanding individuals' awareness of consumer rights and protections is crucial for ensuring
financial well-being and empowerment in the Indian context.

By considering these indicators, researchers gain insights into the levels of financial literacy
among individuals and communities. This understanding informs the development of targeted
interventions and policies aimed at promoting financial inclusion, education, and
empowerment. As researchers continue to explore these indicators, they contribute to
advancing knowledge and fostering greater financial resilience and well-being globally and
within the Indian context specifically (Parvez,2022).

Unemployment in India is a multifaceted issue stemming from various factors such as

population growth, inadequate educational infrastructure, rapid urbanization, and a lack of
diversified employment opportunities. The country's large population, coupled with the limited
availability of suitable jobs, exacerbates the problem, leading to high levels of unemployment,
particularly among youth and those with limited formal education. In the World Economic
Forum's Global Gender Report 2015, India ranked 139 out of 145 countries in the sub-index of

9
economic participation and opportunity/systems/programs of various out of 145 countries in
terms of female labor force participation. The challenges women face in business are defined
from the perspective of all women, and women entrepreneurs in particular. For entrepreneurs
in general, lack of access to finance is the most common and critical challenge, driven by poor
financial literacy and a lack of relational skills. Some existing gender biased rules of banking
products and financial services could hinder women from convenient access to credit.
(Kaviarasu,2019)

One promising solution to address unemployment in India is Entrepreneurship has the potential
to create jobs, drive innovation, and foster economic growth. By encouraging and supporting
entrepreneurship, India can mitigate the challenges posed by unemployment in several ways.
Firstly, entrepreneurship empowers individuals to create their own opportunities rather than
relying solely on traditional employment avenues. Through initiatives such as skill
development programs and startup incubators, aspiring entrepreneurs can acquire the necessary
knowledge and resources to establish their own businesses.

Secondly, startups and small businesses have the capacity to generate employment
opportunities across various sectors, including technology, manufacturing, agriculture, and
services. As these enterprises expand, they create a ripple effect by hiring additional personnel
and engaging with suppliers and service providers, thereby stimulating economic activity and
creating a multiplier effect on job creation. Moreover, entrepreneurship fosters innovation and
dynamism within the economy. By encouraging creativity, risk-taking, and problem-solving,
entrepreneurial ventures contribute to the development of new products, services, and business
models, which in turn drive competitiveness and sustainable growth.

Government policies play a crucial role in fostering an entrepreneurial ecosystem conducive to

job creation and economic prosperity. Measures such as simplifying regulatory frameworks,
providing access to finance and infrastructure, promoting research and development, and
facilitating market access can incentivize entrepreneurship and stimulate job growth in India.

In conclusion, unemployment remains a pressing issue in India, but entrepreneurship presents

a promising avenue for addressing this challenge. By nurturing a culture of entrepreneurship
and implementing supportive policies, India can harness the potential of its vast workforce to

10
drive inclusive growth and create meaningful employment opportunities for its citizens. (Nefise
, Tula et al , 2024)

The study examines the gender gap in Indian financial inclusion using 2017 Global Findex
data. It finds that women in India face substantial financial exclusion compared to men,
primarily due to lower employment status and education. Policymakers should focus on
women's economic empowerment, job opportunities, and education to bridge this gap and
promote financial literacy and digital inclusion among women for gender equality and inclusive
financial systems. (Ghosh, Chaudhury, 2019)

Financial inclusion is crucial for sustainable national growth and inclusive development. In
India, government and Reserve Bank of India initiatives have aimed to address financial
exclusion, with a focus on self-help groups (SHGs). SHGs, particularly benefiting women,
promote thrift, provide microfinance, and encourage micro-entrepreneurship. This study
explores SHGs' role in empowering rural women through financial inclusion, relying on data
from NGOs, NABARD, and banks. SHGs are pivotal in the participatory approach for women's
economic empowerment, offering support and fostering socio-economic improvement.
(Reddy, Kumar, 2022)

In India, financial inclusion is a key focus for promoting economic growth and social
development, particularly among disadvantaged and low-income groups. Ensuring the
financial well-being of marginalized sections, including women, is essential for achieving
inclusive growth. Studies indicate that over 70% of those benefiting from financial inclusion
initiatives are women. Self-help groups (SHGs) play a pivotal role in this effort, empowering
women and enhancing their economic prospects. This study aims to assess SHGs' impact on
women's empowerment, examine linkage establishment, and explore strategies to further
women's empowerment. (Shetty, Hans, 2019)

11
2.2 Research Gap and Conclusion

A study of women's economic empowerment in India reveals a significant gap in three critical
areas. First, there is a lack of comprehensive evaluation of the effectiveness of implementing
financial schemes for women. Understanding the factors influencing or hindering successful
implementation is essential to improve the overall impact of these systems.

Second, although barriers to women's access are acknowledged, these challenges need to be
further analyzed. This includes examining issues such as digital literacy, infrastructure
limitations, cultural barriers, and administrative barriers that prevent women from participating
in funding programs.

Finally, existing literature often focuses on short-term outcomes without delving into their
sustainable impacts. systems economic sustainability and long-term empowerment of women.
Conducting longitudinal studies and investigating the factors that promote sustainable
economic empowerment are critical to understanding the effectiveness of financial systems
targeting women in India. Addressing these gaps will provide valuable information for
designing and implementing more effective policies and programs.

12
 CHAPTER - 3
RESEARCH DESIGN

13
3.1 Introduction

Empowering women, especially in finance, is an important aspect of India's sustainable

development and gender equality. Women’s empowerment is closely related to the
achievement of Sustainable Development Goal 5 - gender equality. By ensuring women's
access to education, health care, employment opportunities and decision-making roles, we
promote inclusive societies, accelerate economic growth and advance global progress towards
equality, justice and sustainable development for all. Despite significant progress in recent
years, women in India continue to face many socio economic challenges, such as limited access
to financial services, lower financial literacy, and gender discrimination in the workforce. To
address these issues, various government schemes and programs have been implemented to
improve women's economic empowerment across the country.

The purpose of this study is to examine the effectiveness and impact of government schemes
for women's economic empowerment in India. . Specifically, the study examines the extent to
which schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Mudra scheme
have promoted women's economic inclusion, literacy and economic participation. By analyzing
the implementation and results of these systems, the study aims to provide valuable insights
into the challenges and opportunities associated with the economic empowerment of women
in India.

3.2 Statement of problem

The financial empowerment of women in India through various schemes presents challenges
in assessing their effectiveness, accessibility, and impact. Factors such as limited access to
financial services, strict eligibility criteria, and insufficient awareness hinder women's ability
to benefit from these initiatives. Therefore, there is a need for a systematic analysis to identify
obstacles and opportunities for enhancing women's financial empowerment.

14
3.3 Need for study

This paper delves into the interplay between financial schemes and empowerment,
emphasizing their crucial roles in fostering individual agency and socio-economic inclusion.
Through empirical evidence and theoretical frameworks, it elucidates how enhanced financial
understanding enables individuals to navigate challenges, make informed decisions, and
advocate for equitable outcomes. By analyzing existing literature and case studies, the study
underscores the transformative potential of financial literacy across diverse socio-cultural
contexts, emphasizing implications for policy and practice. The synergy between
empowerment and financial literacy is deemed foundational to inclusive development and
social justice, essential for navigating complex global landscapes. This research contributes
significantly to understanding the role of financial empowerment schemes in enhancing
individual capacities, promoting socio-economic empowerment, and advancing collective
well-being. Additionally, it acknowledges the broad scope of empowerment research,
particularly focusing on the advancement, equality, and agency of women across various
spheres of life.

3.4 Scope of the study

This study focuses on analyzing the effectiveness and impact of financial plans for women in
India. It examines governmental initiatives aimed at promoting women's economic
empowerment through access to finance. The study evaluates the implementation mechanisms,
accessibility and results of these systems in different socio-economic strata and geographical
regions. It also examines the challenges women face in accessing and benefiting from these
systems and identifies best practices and policy recommendations to improve their
effectiveness.

15
3.5 Objectives of the Study

1.To analyze existing financial schemes in India with special reference to women. Evaluation
of existing financial schemes targeting women in India.
2. To analyze the implementation mechanisms and accessibility of these schemes.

3. Assess the impact of financial schemes on women's economic empowerment.

3.6 Research Methodology

This study uses a secondary data analysis method to examine women's financial schemes in
India. Information is gathered from government reports, academic publications, statistical
databases and relevant literature. The collected data is organized thematically and analyzed
using descriptive statistics and thematic analyses. A comparative analysis is performed to
assess the differences between the different systems. Observations are interpreted to draw
conclusions and make policy recommendations. Ethical considerations are followed
throughout the research process.

Government Official Websites: We explored official websites of government departments,

research institutes, and organizations involved in women's empowerment and financial
inclusion to access relevant reports, policy documents, and data sets for its availability,
accessibility, and comprehensiveness. In addition, secondary data collection is often more cost-
and time-efficient compared to primary data collection methods such as surveys, interviews or
tests. By using the existing data sources, we can speed up the research process and focus on
analyzing and interpreting data to answer research questions and achieve research goals.

Pradhan Mantri Mudra Yojana (PMMY) - https://www.mudra.org.in/

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - https://pmjdy.gov.in/home

16
CHAPTER - 4
BASIC DESIGN

17
4.1.1 Introduction to Mudra Scheme

Financial inclusion has been one of the main objectives of the Government of India and to
achieve this milestone, Indian Prime Minister Narendra Modi launched the mudra and PMMY
programs historic event in 2015. This scheme was launched to finance unfunded micro
enterprises. Since the micro and small business sectors could not get loans from the formal
financial system, these sectors borrowed money from the informal financial system at
exorbitant interest rates, putting these micro-entrepreneurs in debt vicious cycle commercial
and economic activity. The Mudra Yojana loan comes with a reasonable interest rate and is an
unsecured loan to Non-corporate, Non-agricultural Micro and Small Enterprises to INR 10
lakhs. Mudra loan divided into three parts which are Shishu, Kishore and Tarun. Fine up to Rs
50,000in Shishu category; 50,000 to Rs 5,00,000 are provided in the Kishore category; and
Rs.5,00,000 to Rs.10,00,000/- will be sanctioned in the Tarun category. This scheme is
primarily intended for OBC/SC/ST and women entrepreneurs. This system is a blast for the
vulnerable part of the society who wants to be an entrepreneur. (Mahadule,2022)

4.1.2 Objective of Mudra Scheme

The Mudra Scheme's objectives revolve around fostering entrepreneurship, financial inclusion,
and economic development. It aims to provide financial support to micro-enterprises and small
businesses, particularly those owned by women, Scheduled Castes, Scheduled Tribes, and
Other Backward Classes. The scheme strives to enable individuals to access affordable credit
for starting, expanding, or modernizing their businesses, thereby promoting job creation,
income generation, and poverty alleviation. Additionally, it seeks to encourage the growth of
the MSME (Micro, Small, and Medium Enterprises) sector, promote innovation and skill
development, and contribute to overall economic progress and social empowerment by
facilitating access to formal financial services.

PMMY is a flagship scheme launched by the Union Government on April 8, 2015, which
provides loans up to Rs 10 lakh to non-agricultural small/micro enterprises. According to
PMMY, all banks viz. Public Sector Banks, Private Sector Banks, Regional Rural Banks, State
Cooperative Banks, Foreign Banks and Non-Banking Financial Institutions

18
(NBFCs)/Microfinance Institutions (MFIs) must lend to non-agricultural\ nine income
generating activities below Rs. 10 lakhs. These loans are classified as MUDRA loans under
PMMY. To implement the scheme, the government has established a new agency called
MUDRA (Micro Units Development and Refinance Agency Limited) with development and
refinancing activities related to micro-units than in the microcredit sector in general. MUDRA
offers refinance to all banks willing to refinance small business loans under PMMY. Thus,
MUDRA refinances all financiers of the last mile - various non-bank financial companies that
finance small businesses, societies, foundations, non-cooperatives, small banks, commercial
banks and regional rural lending banks. for micro/small businesses engaged in manufacturing,
trading and other services. (Mahajan, 2019)

To Summarise,

• Unfunded - Loans of up to Rs 10 lakhs to those who have a business plan to generate

income from non-agricultural activities such as manufacturing, processing, trading or
service sector but do not have enough capital for investment. Reduce unemployment
growth - Helps create sources of employment and increase overall production by
providing credit facilities to micro-enterprises.

• Monitoring and Regulation of Microfinance Institutions (MFIs) - MUDRA Bank helps

monitor the network of MFIs and also make new registrations. Integration. from the
shadow economy into the formal sector - This will also help India raise its tax base as
income from the informal sector is not taxed.

• Promotion of Financial Inclusion - PMMY continues to enhance the vision of financial

inclusion. the goal is to reach the final issuance of loans to micro-enterprises and the
use of technological solutions. (https://byjus.com/free-ias-prep/pmmy-pradhan-
mantri-mudra-
yojana/#:~:text=Launched%20in%20April%202015%20by,personal%20loans
%20to%20eligible%20entities. )

19
4.1.3 Beneficiaries of PMMY scheme

Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created
products/schemes. The interventions are named "Shishu", "Kishore" and "Tarun" to indicate
the stage of growth/development and financial needs of the beneficiary micro-unit/entrepreneur
and also provide a benchmark for the next stage of completion/growth. next :

Shishu : covers loans up to 50000/-

Kishor : covers loans above 50000/- and up to 5000000/-
Tarun : covers loans above 5000/-10 lakh

To promote entrepreneurship among the new generation, it is ensured that more of attention
will focus on Shishu category units and then on Kishore and Tarun categories. Within the
framework and overall objective of developing and growing the Shishu, Kishore and Tarun
micro enterprise sector, the products offered by MUDRA have been developed to cater to
different sectors/ enterprises and business /entrepreneur segments. There are two types of
financial support from MUDRA: Microcredit Scheme (MCS) for loans up to ₹ 1000 through
IMFs. Refinancing Scheme Commercial Banks / Regional Rural Banks (RRBs) / Microfinance
Banks / Non-Banking Finance Companies (NBFCs). (https://www.mudra.org.in/offerings)

4.1.4 Benefits of Mudra scheme to women

• Women can secure loans from Mudra Yojana for women without any collateral and
relatively low interest rate.
• A 2% interest subsidy is available to borrowers in the Shishu category.
• Unfunded and unregistered business sectors can easily avail this fund).
• Mudra loan meets working capital requirements
• Loans are classified based on OBC/SC/ST/WOMEN code which Identifies their status
and helps the government takes appropriate Measures.

20
 • Increasing the number of entrepreneurs Economic and social progress, including
increased independence and improved standard of living for women are among the
main reasons for this phenomenon.

4.1.5 Eligibility criteria for Mudra Scheme

Pradhan Mantri MUDRA Yojana (PMMY) loan eligibility is open to all business units or sole
proprietors who have maintained a clean repayment record and have no previous credit
defaults. This applies to owners of private companies, limited partnerships, public sector
companies, holding companies or other legal entities. MUDRA loans are for business purposes
only and cannot be used for personal expenses. The loan support is intended for small
companies that operate in the industrial, service or commercial sectors, which enable the funds
to be used for marketing, increasing working capital or obtaining capital. Although the
maximum amortization period for a PMMY is 5 years, the actual loan term may vary at the
lender's discretion at the time of loan approval. (Mahajan, 2019)

• All non-farm enterprises

• Under micro enterprises and small enterprises segment
• Engaged in income generating activities
• Engaged in manufacturing, trading and services
• Whose credit needs are up to Rs. 10 lakhs
• Now allied agriculture activities have also been included under PMMY scheme w.e.f.
01/04/2016.

(https://www.bankofbaroda.in/personal-banking/loans/pradhan-mantri-mudra-yojana)

4.1.6 Importance of women in PMMY

Women's participation in the Mudra Scheme (Pradhan Mantri Mudra Yojana or PMMY) holds
significant importance due to its multifaceted impact on economic empowerment, inclusive
growth, financial inclusion, skill development, business diversity, and social impact.

21
Firstly, the scheme empowers women by providing them with financial resources to start or
expand businesses, enhancing their decision-making power and socio-economic status.
Secondly, it promotes inclusive growth by leveraging the entrepreneurial potential of a large
segment of the population, leading to job creation and poverty reduction. Thirdly, it ensures
financial inclusion by granting access to affordable credit, especially in rural and underserved
areas.

Moreover, the scheme facilitates skill development through training programs, fostering
business acumen and success. Women entrepreneurs contribute to business diversity by
venturing into various sectors, fostering innovation and market expansion. Lastly, their
businesses often prioritize social impact, creating employment opportunities, supporting local
communities, and contributing to sustainable development goals. Overall, women's
participation in the Mudra Scheme catalyses holistic economic and social progress. (Kumar et
al, 2021)

4.2.1 Introduction to Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship scheme launched by the Government
of India on 28 August 2014 to promote financial inclusion. The main objective of this scheme
is to ensure comprehensive financial inclusion, which includes access to banking services,
insurance and pension for all households in India, especially those living in rural areas and
disadvantaged sections of the society. (Kapoor,2017)

4.2.2 Benefits under PMJDY

• One basic savings bank account will be opened for non-bankers.

• No minimum balance required for PMJDY accounts.
• Deposits in PMJDY accounts will earn interest. RuPay debit card will be issued to the
PMJDY account holder.

22
 • Accident insurance Rs 100, 000 (increased by Rs.2000 for new PMJDY accounts which
are opened after 28/08/2018) are available on RuPay card issued to PMJDY account
holders.
• Overdraft (OD) up to Rs. 10,000 is available for eligible account holders. PMJDY
accounts are eligible for Direct Benefit (DBT), Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension
Yojana (APY), Micro Unit Development and Refinancing Agency Bank (MUDRA )
system. (https://pmjdy.gov.in/scheme)
In India, 43% of women had bank accounts in 2014; this number has now increased to 77% of
women in 2017, according to the Global Findex Report 2017. Concurrently, the overall
percentage of male account holders has grown from 63% to 83%. During the same time span,
the gender difference in account ownership has clearly shrunk from 20% to 6%. Government
initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) are responsible for this success.
From PMJDY's inception in 2014, around 42.89 crore (428.9 million) economically
disadvantaged Indians have benefited from it. (Women’s World Banking research with
women Jan Dhan customers in 101 pilot branches, 2020)

India has made significant progress in achieving financial inclusion over the past few years. Of
all the initiatives aimed at creating universal access to financial services, Pradhan Mantri Jan
Dhan Yojana (PMJDY) has been a game changer. Launching the programme, Prime Minister
Narendra Modi described the event as an opportunity to celebrate the "liberation of the poor
from the vicious cycle". As of August 2015, 55% of PMJDY accounts (23.76 million or 237.6
million) 42.89 crore (428.9 million) were owned by women, so the majority of the PMJDY
portfolio is Jan Dhan for women.
(https://pib.gov.in/newsite/PrintRelease.aspx?relid=199735)

4.2.3 Key role of PMJDY in the financial inclusion of women

There are two main reasons why PMJDY plays a key role in the financial inclusion of women.

1. PMJDY proactively provides bank accounts to women, which prevents

long paperwork and thus avoids illiteracy, a common challenge of poor people.

23
2. Several proposals of the system have had a positive impact on women's empowerment on-
economic dimension.

PMJDY offers an overdraft facility of Rs. 10,000 to the woman of the household to
satisfactorily manage the savings account without asking for a guarantee or spending money.
It addresses one of the most pressing issues faced by a user: discretion and financial
independence.
In addition, PMJDY accounts are eligible for Direct Benefits (DBT), Pradhani
Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY) or Micro
Units Development and Refinancing Agency (MUDRA) Bank Scheme has had a positive
financial impact on women over the years. Moreover, two other loan-linked
schemes - Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India (SUPI) - continue to
have the highest participation of women. PMMY was launched in 2015 to provide loans of up
to ₹ 10,000 to non-agricultural small/micro enterprises, \ and 68 percent of borrowers are
women. Standing Women Benefit The Power of Jan Dhan: Raising Money for Women in India
India - Launched in 2016 to promote entrepreneurship at the grassroots level -Opportunity is
82%. (https://www.financialexpress.com/money/six-years-of-pmjdy-rs- )

4.2.4 Importance of women in PMJDY

Jan Dhan's female customers constitute an important and economically valuable consumer
segment for banks and financial service providers for various reasons. First, women are more
committed to saving than men, as shown by the Savings Inclusion Project, where 32% of
female Jan Dhan customers have committed to saving and the balance has increased
significantly. In addition, women tend to be more loyal customers when they are used to
financial services and often act as brand ambassadors in their communities. In addition, their
influence extends to family members, which has a positive effect on household savings habits.
The loan given especially to women is combined with a lower credit risk, which contributed to
the success of microcredit projects. Despite the central role of women in household finances
and decision-making, they remain an untapped segment of banks that present significant
opportunities for targeted action and service delivery.

24
4.2.5 Challenges faced by women

Despite being active and committed savers, women Jan Dhan customers encounter significant
barriers hindering their utilization of formal banking channels for saving. These barriers
include a lack of familiarity with banks due to prior negative experiences and the perception
that banks are not suitable for small savings. Moreover, women often find banking processes
complex and fear approaching banks, with limited awareness of local Business Correspondents
exacerbating their sense of inconvenience. Additionally, the need for instant access to funds
during emergencies leads women to opt for alternative savings methods, while ingrained habits
and limited autonomy in financial decision-making further deter them from utilizing formal
banking services. Despite perceiving banks as safe and trustworthy, emotional distance and
limited interaction persist, primarily limiting their engagement with financial institutions to
essential transactions such as withdrawals for emergencies or accessing government benefits.
(https://www.womensworldbanking.org/wp-content/uploads/2021/08/WWB-The-Power-
of-Jan-Dhan-Report-Web.pdf)

5.2.4 Impact of PMJDY

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has had a significant impact on financial
inclusion and empowerment in India since its inception. By providing access to basic banking
services, insurance coverage and pension schemes, PMJDY has helped millions of previously
unbanked individuals gain access to formal finance. This not only facilitated savings and
remittances, but also created a platform for access to credit and other financial services,
promoting entrepreneurship and economic empowerment. In addition, PMJDY has played a
key role in promoting financial literacy and awareness, especially among marginalized
communities, which has enabled them to make informed financial decisions and ensure
financial well-being. In addition, the system's emphasis on promoting digital transactions has
contributed to the government's broader goal of moving towards a cashless economy by
promoting efficiency, transparency and accountability in financial transactions. Overall,
PMJDY has emerged as a transformative initiative that promotes inclusive growth, reduces
poverty and empowers millions of people across India.

25
 CHAPTER - 5
ANALYSIS OF THE SCHEMES

26
5.1.1 Introduction on Mudra Scheme

The main problems faced by small, medium and micro enterprises are lack of adequate
financial resources, lack of knowledge, lack of market opportunities for their products, high
costs, lack of access to technology and lack of infrastructure. It has been observed that a large
number of backward low-income classes are employed in small, medium and micro enterprises
and have no access to formal financial institutions. Government of India has decided to come
up with big plans to finance these people by introducing financial inclusion initiative like
Pradhan Mantri Mudra Yojana (PMMY). It is a system launched by the federal government on
April 8, 2015, which provides sufficient financial support to micro and small businesses. The
current cumulative status of PMMY is a total of 29.55 million MSE borrower accounts with a
credit limit of 15.52 million kroner. They provide financial support through public sector
banks, private sector banks, small finance banks, microfinance institutions and the non-banking
sector. The mudra yojana covers the entire country and caters to the needs of the weaker
sections of the country. 51% of Mudra yojana loan account belongs to SC/ST/OBC categories
and out of this about 68% loan account is held by women. Mudra loans are divided into three
categories based on size. They are Shishu, Kishore and Tarun. Shishu includes loan up to
50,000, Kishore above 50,000 and 5 lakhs and Tarun includes above 5 and up to 10 lakhs.
Among them, Shishu has the largest share of the total number of accounts. Mudra system
facilitates their financial support not only to SC/ST category but also to general, OBC and other
categories. (Mohan et al , 2023)

5.1.2 Evolution of Mudra Scheme

The development of the Mudra Scheme (Pradhan Mantri Mudra Yojana or PMMY) in India
shows the government's commitment to promote financial inclusion, entrepreneurship and
economic development of micro and small businesses proposition and establishment (2015):
The concept of a special agency providing financial assistance to small businesses and
entrepreneurs was initially proposed in the Union Budget 2015 - 16. The Bank of Micro Units
Development and Refinance Agency (MUDRA) was to act as a refinancing vehicle for Micro
Finance Institutions (MFI) and other lenders, ensuring that they have access to finance for
lending to micro enterprises published by Pradhan Mantri. (Mane et al , 2021)

27
Mudra Yojana (April 2015): Instead of setting up a standalone MUDRA bank, the government
launched the Pradhan Mantri Mudra Yojana (PMMY) in April 2015. The objective of PMMY
was to provide unsecured loans to micro and small enterprises through various financial
institutions including banks and others finance companies (NBFCs) and microfinance
institutions.

Three Tier Loan Structure (2015): PMMY has classified loans into three tiers based on loan
amount namely Shishu (up to ₹ 50,000), Kishore (₹50,001-5,00,000) and Tarun (₹5,00,001 -
10,00,000). This tiered approach has allowed businesses of different sizes to access appropriate
loan amounts based on their needs and repayment capacity Expansion and Coverage (2016-
2018): Over the years, PMMY has expanded its reach to include many micro-enterprises. and
small businesses in various sectors including manufacturing, service and trade. The system has
gained popularity among entrepreneurs, especially in rural and urban areas, encouraging job
creation and economic growth on the ground.

Improvements and support mechanisms (2019-2022): The government has continued to

improve the Mudra program by introducing support mechanisms. such as credit guarantee
schemes, interest subsidies and borrower capacity development programmes. These initiatives
aimed to reduce lenders' risks, improve borrowers' affordability and the entrepreneurial
ecosystem.

Impact Evaluation and Improvements (Ongoing): Ongoing evaluations and improvements of

the Mudra program focus on evaluating its impact on employment and income generation,
business sustainability and general economic development. The government remains
committed to solving the problems and making the necessary adjustments to ensure the
continued success and effectiveness of the system.

Overall, the evolution of the Mudra program reflects a strategic approach to empowering small
businesses, encouraging entrepreneurship and promoting inclusiveness. economic growth in
India.

28
5.1.3 Implementation of Mudra Scheme

The Union Budget 2015-16 presented by Hon'ble Finance Minister Shri Arun Jaitley
announced the establishment of MUDRA Bank. Consequently, MUDRA was granted the status
of company under the Companies Act, 2013 in March 2015 and became a Non-Banking
Financial Institution with the RBI on 7 April MUDRA was launched by Hon'ble Prime Minister
Shri Narendra Modi on 8 April 2015 at Vigyan Bhawan, New Delhi. Mudra, a public sector
financial organization in India, is an agency for micro-unit development and refinancing
organizations, ltd. It offers loans to non-banking institutions and microfinance institutions at
reduced interest rates. These companies are also known as member lending institutions, which
offer loans to qualified customers who have opened mudra accounts with the bank.
( https://www.mudra.org.in/AboutUs/Genesis )

5.1.4 Impact of Mudra Scheme

The Mudra Scheme, also known as the Pradhan Mantri Mudra Yojana (PMMY), has had a
profound impact on various aspects of India's economic and social landscape. Firstly, it has
been instrumental in promoting financial inclusion by providing collateral-free loans to micro-
enterprises and small businesses, particularly those in rural and underserved areas. This
initiative has empowered individuals who were previously excluded from formal banking
channels, enabling them to access credit and support for their entrepreneurial endeavours.

One of the most significant impacts of the Mudra Scheme has been its contribution to job
creation. By supporting the growth and sustainability of small businesses, the scheme has
generated employment opportunities across different sectors such as agriculture, retail,
services, and manufacturing. This has played a crucial role in reducing unemployment rates
and fostering economic activity at the grassroots level.

Moreover, the Mudra Scheme has been a catalyst for the empowerment of women
entrepreneurs. By offering financial resources, training, and mentorship to women-led
businesses, the scheme has promoted economic independence, gender equality, and community

29
development. It has created a conducive environment for women to actively participate in the
entrepreneurial ecosystem and contribute meaningfully to the economy.

Additionally, the Mudra Scheme has spurred business expansion and innovation among its
beneficiaries. Many entrepreneurs have utilized the funds to scale up their operations, adopt
new technologies, and introduce innovative products or services. This has enhanced
competitiveness, market growth, and productivity within the Micro, Small, and Medium
Enterprises (MSME) sector, fostering a culture of entrepreneurship and progress.

Overall, the Mudra Scheme's impact extends beyond financial metrics. It has contributed
significantly to socio-economic development by fostering entrepreneurship, supporting local
businesses, creating income opportunities, and driving inclusive growth. As a cornerstone of
India's efforts towards holistic development, the Mudra Scheme continues to play a pivotal role
in shaping a vibrant and resilient entrepreneurial ecosystem.

The Pradhan Mantri Mudra Yojana (PMMY) continues to serve millions of unfunded micro
borrowers in the country with the loans they need to run their businesses and advance their
lives. In the last eight years, 41.16 have benefited from the PMMY program. crores\loan
accounts with payment of ` 22.89 lakh crores. Thus, enabling the basic economy of the country
to participate more in the total economic growth of the nation. (Annual-Report-2022-23.pdf)

Table 1. Progress of Pradhan Mantri Mudra Yojana Since Inception

Financial year Number of PMMY Loans given Amount Sanctioned Amount Disbursed
(Cr) (Cr)

2015-2016 3,48,80.924 1,37,449 1,20,519

2016-2017 3,97,01,047 1,80,529 1,75,312

2017-2018 4,81,30,593 2,53,677 2,46,437

2018-2019 2,34,45,445 1,27,115 1,20,519

The data illustrates the growth trend in the number of PMMY loans disbursed annually, which
is highest in the financial year 2017-18 with 4,81,30,593 loans. Furthermore, both the

30
sanctioned and disbursed amounts have increased gradually over the years. , reflecting the
growing support and adoption of the PMMY system. Loans number and yet in the financial
year 2018-2019 a slight decrease was observed in the amounts sanctioned and disbursed
compared to the previous year. This may indicate fluctuations in demand or other factors
affecting the distribution of loans during this period.

Table 2. Employment Created across various schemes

Scheme Direct jobs Indirect jobs Total Jobs

Shishu
(Covering loans up 3,02,63,088 75,65,772 3,78,28,860
to ₹50,000)

Kishore
(Covering loans 58,19,487 58,019,487 1,16,38,974
above ₹50,000 & up
to 5 lakh)

Tarun
(Covering loans 16,70,643 33,41,287 50,11,930
above 5 lakhs up to
10 lakh)

Total 3,77,53,218 1,67,26,546 5,44,79,763

Direct jobs under the Mudra program mean jobs created directly in companies or projects
financed by Mudra loans. These jobs are usually administrative positions, technicians,
salespeople or other positions directly related to the production or service process. Indirect
jobs, on the other hand, are those created by increased economic activity in related industries
or sectors. Produced by Mudra funded companies. These may include jobs in supply chain
management, logistics, marketing and a range of support services that contribute to overall job
creation and economic growth indirectly linked to the Mudra program initiatives.

The Shishu Scheme has shown remarkable effectiveness in creating employment, generating a
total of 3,78,28,860 jobs, encompassing both direct and indirect opportunities.

31
Similarly, the Kishore Scheme has made a significant contribution, leading to the creation of
1,16,38,974 jobs, while the Tarun Scheme has contributed 50,11,930 jobs.
In total, these schemes have created 5,44,79,763 jobs, underscoring their positive influence on
employment generation, both directly and indirectly.

Table 3. Cumulative for 8 years since Inception

Category Number of Amount Sanctioned Amount disbursed

accounts (Cr.) (Cr.)

TOTAL 41,16,62,033 23,48,250 22,89,781

WOMEN 28,24,88,984 10,58,623 10,21,457

PERCENTAGE 68.62 45.08 44.61

In the eight years since Mudra's inception, there has been significant engagement and the
creation of more than 41 million accounts is a testament to the program's widespread adoption
and use. Women still make up a significant portion of beneficiaries, accounting for 68.62
percent of all accounts. This speaks to the continued success of the system to support women
entrepreneurs and promote gender equality within financial support programs. However, there
is a clear difference in the amount of sanctions and financial resources paid to women compared
to the representation of women among all beneficiaries. This underlines the importance of

32
 policy makers addressing this gap and ensuring a fairer distribution of funds to female
beneficiaries while maintaining the overall efficiency and coverage of the system.

Table 4. Beneficiaries of mudra Scheme of year 2022-2023

Category Number of accounts Amt sanctioned (Cr) Amt disbursed (Cr)

TOTAL (3 schemes) 6,23,10,598 4,56,538 4,50,424

Women 4,42,56,813 2,16,954 2,15,035

Percentage 71.03% 47.52% 47.74%

The Mudra program has shown extensive activity with more than 6.23 million beneficiaries in
the said year. This shows the widespread adoption and use of the program. Women made up a
significant proportion of beneficiaries, accounting for 71.03 percent of all accounts. This
highlights the success of the system in empowering women entrepreneurs and promoting
gender inclusion in financial assistance initiatives. However, there is little difference between
the amounts awarded and paid to women compared to their share of the total number of
beneficiaries. Addressing this imbalance should be a priority for policy makers to ensure
gender distribution of resources while maintaining the overall efficiency and scale of the
system.

Table 5. Scheme wise allocation to women Borrowers

Shishu (Loans up to Kishore (loans Tarun 9 loan from Total

50,000) 50,000- 5,00000) 500000-1000000)

No. of Amount No. of Amount No. of Amount No. of Amount

accounts accounts accounts accounts

3,21,87,496 112,228.35 11,28,5672 91,691.19 1,53,645 1,11,115.01 4,42,56,813 2,15,034.55

(71.03%) (47.47%)

33
Of the total amount disbursed,47.74% went to women borrowers. 52.67% of Shishu class
accounts belonged to women who were paid 24.92% in Shishu class. The reason for the high
proportion of women in Shishu class is mainly micro loans issued by financial institutions. for
women.

5.2.1 Introduction on Pradhan Mantri Jan-Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship scheme launched by the Government
of India. Its main objective is to provide banking services to all households, especially those
living in rural and underserved areas. Launched in 2014, PMJDY aims to promote financial
literacy, savings and digital commerce that will increase financial inclusion and empower
economically marginalized sections of society. PMJDY plays a key role in promoting
economic empowerment and inclusive growth across India by focusing on opening bank
accounts, providing insurance and pension schemes and access to easy credit.

5.2.2 Evolution of PMJDY

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has evolved significantly since its inception
and has gone through several phases to achieve its goals of financial inclusion and
empowerment. Initially launched in August 2014, the scheme aimed to provide basic banking
services to unbanked households across India. In the first phase, PMJDY focused on rapid
expansion, setting ambitious targets for opening bank accounts and promoting financial
literacy. In this phase, comprehensive support measures were introduced and millions of
accounts were opened within a short period of time.

In later phases, PMJDY began to deepen financial inclusion by promoting the adoption of
various financial products and services among account holders. This included the provision of
super credits, insurance cover and access to pension schemes for eligible beneficiaries. In
addition, efforts have been made to promote digital transactions and reduce reliance on cash
payment transactions, which is in line with the government's broader goal of creating a cashless
economy.

34
As the PMJDY progressed, it also emphasized the importance of increasing financial literacy.
and consciousness. people account holders, especially in rural and underserved areas. Various
initiatives such as financial literacy camps, awareness programs and skill development
workshops have been launched to equip account holders with the knowledge and skills required
to make informed financial decisions.

Furthermore, PMJDY has been continuously developed and adapted to meet emerging
challenges and capitalize on financial opportunities.in the landscape of inclusion. This included
the integration of technology-based solutions such as Aadhaar-enabled payment systems and
mobile banking platforms to improve accessibility and convenience for account holders.

Overall, PMJDY's evolution reflects a dynamic and multifaceted approach to its holistic
outreach. goals of financial inclusion and empowerment. From the initial phase of rapid
expansion to subsequent phases focused on deepening inclusion and promoting digital
transactions, PMJDY has played a pivotal role in transforming India's economy and
empowering millions of unbanked individuals across the country.

5.2.3 Implementation of PMJDY

The implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) was a huge undertaking to
achieve comprehensive financial inclusion across India. Launched in August 2014, the scheme
has been rolled out with remarkable speed and scale, targeting the unbanked and underbanked
segment of society. The implementation process involved extensive coordination among
various stakeholders including government agencies, financial institutions and grassroots
organizations to ensure effective outreach and coverage. One of the main strategies used was
the establishment of special camps and support programs in rural and remote areas, which
facilitated the opening of millions of bank accounts within a short period of time. In addition,
innovative approaches such as door-to-door banking and mobile banking have been introduced
to reach people in hard-to-reach areas. In addition to opening an account, implementation also
focused on the availability of other financial services such as insurance, pension schemes and
overdrafts, which further strengthened the benefits of financial inclusion. Continuous

35
 monitoring and evaluation mechanisms have been established to monitor progress, identify
challenges and refine strategies as needed. Despite obstacles such as logistical constraints and
awareness gaps, the implementation of PMJDY has made significant progress in expanding
access to finance and fostering inclusive growth across India, laying the foundation for a more
inclusive and sustainable financial ecosystem.

4.2.6 Progress in Pradhan Mantri Jan-Dhan Yojana

More than 51.93 Crore beneficiaries banked till 13th March and ₹2,22,582.26 Crore Balance in
beneficiary accounts. Roughly around ₹11.59 lakh Bank Mitras delivering branchless banking
services in the Country.

Pradhan Mantri Jan-Dhan Yojana

(All figures in Crore)
Beneficiaries as on 06/03/2024 Table 6.

Bank Number of Number of No. of Number of Deposits Number of

Name/Type Beneficiaries at Beneficiaries Rural- Total in RuPay
rural/semiurban at urban Urban Beneficiaries Accounts Debit Cards
centre bank metro centre Female (In issued to
branches bank Beneficiaries Crore) beneficiaries
branches

Public 25.44 15.11 22.31 40.55 175719.18 30.63

Sector
Banks

Regional 8.33 1.37 5.63 9.70 43822.59 3.48

Rural
Banks

36
 Private 0.73 0.83 0.84 1.57 6628.95 1.28
Sector
Banks

Rural 0.19 0.00 0.10 0.19 0.01 0.00

Cooperative
Banks

Grand 34.69 17.32 28.87 52.01 226170.73 35.38

Total

Table 7. Growth Rate of Bank Accounts under Pradhan Mantri Jan Dhan Yojana
(PMJDY)

Sl. Years No. of Beneficiaries Growth Rate (%) CAGR

2014- 2015 -
1. 14,53,68,040

2015- 2016 47.4

2. 21,42,75,474

2016- 2017 31.5

3. 28,26,78,271

2017- 2018 31,44,39,129 11.6

4.

2018- 2019 35,26,62,230 12.2

5.

14.3737%
2019- 2020 38,32,79,961 8.6
6.

2020- 2021 42,20,05,644 10.1

7.

2021- 2022 45,06,15,343 6.8

8.

37
 2022- 2023 48,65,36,360 7.9
9.

Source: PMJDY, 2023

Table 7. shows the number of accounts opened during PMJDY from 2014-15 to 2022-23. In
2015-2016, the growth was 47.4%, making it the highest growth year for PMJDY accounts.
This significant growth is due to several factors including increased awareness campaigns,
streamlined account opening processes and better availability of banking services in remote
areas. Unlike the peak year of growth in 2015-2016, the growth rate fell to 6.8 percent in 2021-
2022, which is the lowest growth rate of the years under review. This slowdown in growth can
be attributed to a number of factors such as account density in certain regions, changes in
economic conditions and changing priorities for financial inclusion. It is important to note that
a lower growth rate does not necessarily mean that an initiative is less effective. Rather, it may
be a sign of natural stabilization after years of rapid expansion. The compound annual growth
rate is 14.37%, showing steady progress over the period, reflecting the success of the Pradhan
Mantri Jan Dhan Yojana in expanding access to banking services across India.

38
 Table 8. Growth Rate of Deposits under PMJDY

Sl. No. Years Deposit in accounts (In Lakh) Growth Rate (%) CAGR

1. 2014-2015 -
15,670.29

2. 2015-2016 127.64
35,671.98

3. 2016-2017 76.53
62,972.43

78,493.99
4. 2017-2018 24.65

96,107.35
5. 2018-2019 22.44

32.63
1,18,434.40
6. 2019-2020 23.23

1,45,550.52
7. 2020-2021 22.90

1,66,459.16
8. 2021-2022 14.37

1,98,844.33
9. 2022-2023 19.46

Table 8. shows the growth rate of PMJDY deposits in India during 2014-15. Among the years
listed in Table 3, the highest growth is in 2015-2016 when PMJDY account deposits increased
from 15,670.29 thousand in 2014-2015 to 35,671.98 thousand in 2015-2016. This shows
tremendous growth. about 127.64%. The significant increase in deposits in 2015-2016 is due
to the increase in the participation of people who were previously excluded from the formal
banking system and formal financial institutions. Among the listed years, the lowest growth is

39
in 2021-2022, when deposits fall from 22.90 percent to 14.37 percent in 2020-2021. The
relatively lower growth rate in 2021-22 is due to the fact that by now a significant portion of
the population has already participated in the PMJDY scheme, resulting in a more mature and
stable user base.
A CAGR of around 30.33 percent gives an average growth rate consistent with the entire
period, showing that PMJDY - the overall success of the system promoting financial inclusion
and increasing deposits in bank accounts.

40
CHAPTER 6 -
CONCLUSION

41
6.1.1 Challenges Faced by Mudra Scheme

The MUDRA scheme addresses the default risk of its borrowers, particularly borrowers
classified under Shishu and Kishore loans. Micro businesses, which often operate in volatile
market conditions and with limited resources, can struggle to generate consistent cash flows to
repay loans. This risk of default not only affects the financial condition of the borrowers, but
also leads to non-performing assets of banks and financial institutions, which affects their
ability to lend.

The biggest challenge of the Mudra system is the lack of credit. among many borrowers. Due
to limited financial literacy and understanding of the proper use of credit, some borrowers may
misuse loan funds or divert them to personal or non-business activities. This lack of discipline
can create financial stress for both borrowers, who may struggle to repay loans, and lenders,
who may face higher default rates and loan losses.

Despite its goal of promoting financial inclusion, the MUDRA program faces challenges.
marginalized and peripheral areas with many micro-enterprises. Inadequate banking
infrastructure, poor connectivity and limited awareness of the scheme among potential
beneficiaries hinder its penetration in these underserved areas. Improving access to financial
services in these areas remains a key challenge for MUDRA's success.

Ensuring effective monitoring and evaluation of MUDRA loans is another challenge. Banks
and financial institutions need robust mechanisms to monitor loan utilization, assess business
performance of borrowers and provide the necessary guidance and support. Without proper
monitoring, there is a risk that the funds will be misused or not optimally used for business
growth, leading to challenges in loan recovery and sustainability.

Many micro-enterprises supported by MUDRA loans may experience long-term problems.

sustainability and scalability. In addition to funding, these companies often require additional
support such as training, mentoring, market access and technology adoption. The lack of
comprehensive support beyond financial support can affect the success and growth prospects
of these businesses, challenging the overall effectiveness of the MUDRA system.

42
6.1.2 Strengthening of Mudra scheme

To address credit discipline and financial literacy of MUDRA borrowers, comprehensive

financial literacy programs should be implemented. . These programs should focus on
educating borrowers about responsible lending practices, credit discipline, effective use of loan
funds for business purposes, and financial management skills. By improving the financial
literacy of micro-enterprises, borrowers can make informed decisions, reduce default risks and
ensure better
utilization of MUDRA loans.

Capacity development initiatives are critical to empower micro-enterprises and improve their
business capabilities. Provide capacity development programs, market linkages, technology
adoption support and mentorship opportunities to MUDRA borrowers. These initiatives
provide entrepreneurs with the necessary knowledge, skills and resources to improve business
efficiency, expand markets and achieve long-term sustainability. Capacity building efforts
must be tailored to the specific needs and challenges of different microenterprise sectors.

Strengthening of monitoring and evaluation mechanisms is necessary so that utilization of

MUDRA loans can be effectively monitored. Strengthen the monitoring framework by
implementing real-time reporting systems, conducting regular audits and using data analytics
to assess loan performance and identify potential defaults. Proactive monitoring enables timely
intervention, risk mitigation and correction to prevent loan defaults and improve the overall
quality of MUDRA's loan operations.

Customization of financial products and services can meet the different needs of micro-
enterprises and mitigate repayment problems. Introduce flexible repayments, moratorium
periods, interest subsidies and customized loan structures based on cash flows and business
dynamics of borrowers. Tailored financial products ensure that MUDRA loans are accessible,
affordable and tailored to the financial capacity of micro-enterprises, thereby reducing the risk
of default and improving loan repayments.

Use technology to streamline loan processes, improve and facilitate digital banking services. .
Online monitoring of MUDRA loans. Implement digital platforms for loan applications,

43
payments, repayments and reporting to improve efficiency, transparency and accessibility. The
integration of technology will not only reduce operational costs, but also improve the overall
user experience for borrowers and lenders, promoting wider adoption and use of MUDRA
loans by micro-enterprises.

Promote collaboration between government agencies, financial institutions, industry

associations. and NGOs. and NGOs. community-based organizations to create a
comprehensive support ecosystem for micro-enterprises. Create partnerships to expand reach,
share best practices, leverage resources and provide comprehensive support to MUDRA
borrowers. Cooperation can improve market access, provide mentoring and advisory services,
facilitate networking opportunities and promote information for the benefit of micro-
enterprises in different sectors.

Introduce risk management measures such as credit guarantee schemes, unsecured loans, credit
insurance and credit. advisory services to protect lenders and borrowers from unexpected
challenges. Develop safety nets and contingency plans for economic disruptions, market
volatility and business risks that may affect loan repayment. Risk management strategies ensure
the sustainability and flexibility of MUDRA loan transactions, increase stakeholder confidence
and support the continued growth of micro-enterprises.

Promote responsible lending and repayment behaviour of MUDRA borrowers by offering

rewards, recognition and incentives terms to borrowers who demonstrate good credit.
Encourage timely repayment, loan compliance and proactive cooperation with financial
institutions by offering incentives such as interest rate discounts, credit score improvements
and eligibility for larger loan amounts. The incentives promote a culture of credit discipline,
reduce default risks and strengthen the overall creditworthiness of micro enterprises, benefiting
both borrowers and lenders.

Strengthens the regulatory framework for microcredit institutions and NBFCs participating in
MUDRA lending. Review and improve regulatory standards for due diligence, risk assessment,
ethical lending practices, transparency and governance. Enforce strict guidelines to ensure
responsible lending, fair treatment of borrowers and regulatory compliance. A strong
regulatory framework instils confidence, promotes stability and protects the interests of

44
stakeholders in the microfinance sector and supports the sustainable growth of MUDRA loan
projects.

6.2.1 Challenges Faced by Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan-Dhan Yojana (PMJDY) has played a pivotal role in expanding
financial inclusion in India by ensuring access to basic banking services to all citizens.
However, the system has some challenges that affect its effectiveness and the overall goal of
promoting economic empowerment.

One of the major challenges is the low active use of PMJDY accounts. Although the number
of accounts opened within the system has increased significantly, many beneficiaries do not
make regular transactions and do not use the offered banking services to their full extent. Lack
of active utilization limits the impact of the scheme in promoting financial inclusion of
marginalized communities and use of formal banking channels.

Financial literacy remains a critical challenge among PMJDY beneficiaries, especially in rural
and economically disadvantaged segments. Many account holders lack the necessary
knowledge of banking concepts, digital transactions, saving and investing. Lack of financial
literacy hinders their ability to effectively use the services provided by PMJDY and make
informed financial decisions, thus reducing the overall effectiveness of the system.

Adequate banking infrastructure, especially in rural and remote areas, is another major
challenge. Limited access to bank branches, ATMs and digital banking services makes it
difficult for beneficiaries, especially those in underserved areas, to effectively access and use
banking services. Improving banking infrastructure and expanding financial support centers
are essential to meet this challenge and increase PMJDY's reach and impact.

Dual accounts among beneficiaries are also a management challenge for PMJDY. Some people
may have multiple PMJDY accounts either out of ignorance or intentionally to access multiple
benefits. Managing and linking these overlapping accounts creates challenges in data
management, account operations and accurate identification of beneficiaries.

45
There have been reports of fraud, mismanagement and abuse of PMJDY accounts, challenging
the trust and reliability of the system. Problems such as unauthorized withdrawals, identity
theft and fraudulent transactions undermine the objectives of PMJDY and require robust
prevention, detection and remedial measures.

Barriers to accessing funding continue to exist for certain marginalized groups such as migrant
workers, tribal communities and the disabled. , which poses challenges to PMJDY engagement.
Despite efforts to promote financial inclusion, targeted outreach programs, specific initiatives
and tailored services are needed to address the specific needs and challenges of underserved
communities and ensure their meaningful participation in PMJDY.

Bridging the digital divide is critical to maximizing benefits. Under PMJDY. Disparities in
digital infrastructure, network connections and digital literacy continue to exist, especially in
rural areas. Investments in digital infrastructure, comprehensive digital literacy programs and
initiatives to promote digital inclusion of PMJDY beneficiaries are essential to overcome this
challenge and realize the potential of digital banking under PMJDY.

Ensuring the financial sustainability of PMJDY accounts, especially for banks and financial
institutions, is another major challenge. The costs associated with maintaining zero balance
accounts, providing subsidized services and managing a large customer base must be balanced
against revenue generation and long-term viability. Sustainable business models, cost-effective
operations and innovative revenue strategies are needed to address this challenge and ensure
the continued success and scalability of PMJDY.

Finally, effective data management and privacy protection are key challenges for PMJDY.
Managing the large volumes of data generated by PMJDY accounts while ensuring data
integrity, security and privacy requires robust data management systems, protocols and
governance frameworks. Adhering to regulatory guidelines, implementing strict security
measures and improving data protection mechanisms are important factors in building trust
between account holders, preventing data breaches and maintaining the integrity of PMJDY's
operations.

46
6.2.2 Strengthening of PMJDY scheme

Several strategies can be implemented to address the challenges of the Pradhan Mantri Jan-
Dhan Yojana (PMJDY). First, improving financial literacy through comprehensive programs
for beneficiaries is critical. Educating account holders on banking concepts, digital transactions
and responsible financial management will enable them to make informed decisions and use
banking services effectively.

Secondly, improving banking infrastructure, especially in rural areas, is imperative. This

includes opening more bank branches, installing ATMs and promoting digital banking services
to improve the usability and active use of PMJDY accounts.

Thirdly, it is important to strengthen account management through duplicate account

management and accurate identification of beneficiaries. Consolidating duplicate accounts,
updating information systems and improving control mechanisms will improve service
delivery and accountability.

Fourth, strengthening security measures to prevent fraud and protect account holders is very
important. Implementation of improved authentication methods, real-time monitoring systems
and effective complaint redressal mechanisms will increase trust among beneficiaries.

Ultimately targeting marginalized groups and tailoring services to bridge the digital divide
through investments in digital infrastructure and ensure financial sustainability. innovative
income generation strategies are essential. Stakeholder collaboration can effectively address
these challenges and maximize PMJDY's impact on financial inclusion and empowerment
across India.

47
6.3 Comparative Analysis of both the schemes

Pradhan Mantri Jan Dhan Yojana (PMJDY) and MUDRA (Micro Units Development and
Refinance Agency) are two flagship initiatives of the Government of India, mainly aimed at
financial inclusion and empowerment of women. Both systems had a major impact on the
socio-economic landscape of the country, especially from the perspective of women.2014.
Launched in 2008, PMJDY aimed to provide access to financial services such as banking and
insurance services to the unbanked population, especially women. in the country As of more
than 48,65,36,360 accounts have been opened under PMJDY, a significant number of which
are owned by women. This system helped close the gender gap in financial inclusion and
empowered women by allowing them to access banking services, insurance and government
subsidies directly into their accounts. In addition, PMJDY offers various benefits such as
overdraft facility, RuPay debit card and life insurance, which improves women's financial
security.

On the other hand, the MUDRA program launched in 2015 focuses on providing financial
assistance to micro. – to encourage businesses, including women's companies, to engage in
entrepreneurship and self-employment. The scheme offers loans up to Rs. 10 lakhs for three
categories - Shishu, Kishore and Tarun - corresponding to different stages of the company's
growth. Statistics show that a significant portion of the loans disbursed under the MUDRA
program went to women entrepreneurs, which contributed to their economic empowerment.
68.62% of MUDRA loans were availed by women, which shows their active participation in
business.

If we compare both the schemes from women's perspective, it is clear that both PMJDY and
MUDRA played a crucial role, role in the economic empowerment of women. While PMJDY
focuses on providing basic banking services and financial security to women, MUDRA
complements this effort by facilitating access to credit for business enterprises. Together, these
plans not only improved women's access to financial resources, but also fostered a culture of
entrepreneurship that led to socioeconomic upliftment at the grassroots level. Finally, the
PMJDY and MUDRA programs contributed significantly to women's empowerment giving
them access to financial services and credit facilities. Statistical data confirm the positive
impact of these systems on women's institutions.

48
Statistical data confirm the positive impact of these systems on the economic inclusion and
entrepreneurship of women, which contributes to economic growth and social development.
However, both initiatives share the common goal of increasing financial inclusion and
socioeconomic impact. PMJDY's investment in opening bank accounts laid the foundation for
MUDRA's goal of providing credit to small businesses and ensuring a synergistic approach to
inclusive growth. Statistically, PMJDY opened more accounts, but there are significant
borrowing costs in the MUDRA system. , which shows concrete support for commercial and
economic development. Together, these initiatives have significantly improved access to
finance, promoted entrepreneurship and reduced poverty levels across India.

To determine whether the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Micro Units
Development and Refinancing Agency (MUDRA) have fully achieved their objectives, a
nuanced analysis of their impact on financial inclusion and financial empowerment is needed.
Since the PMJDY, there is the scheme has made significant progress in banks in expanding
availability across India. By providing basic banking services to millions of previously
unbanked individuals, it has significantly increased financial inclusion. However, achieving
financial literacy and ensuring active use of accounts remains a challenge. Although the
number of open accounts is impressive, it is necessary to assess more precisely how much these
accounts are actively used for transactions, savings and insurance and pension benefits.

Similarly, the MUDRA system played an important role. when he gives financial support. for
micro-enterprises, which promotes entrepreneurship and job creation. The system's large loan
payments encouraged the growth of small businesses and helped create a favourable
environment for economic development.

Finally, while both the PMJDY and MUDRA programs have made significant progress in
achieving their financial goals of inclusion and promoting entrepreneurship, but there are still
areas that require attention and development. Continuous monitoring, evaluation and
improvement of these initiatives is essential to ensure their long-term effectiveness and
sustainability in promoting socio-economic empowerment of women across India.

49
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xvi
ANNEXURES

xvii
Pradhan Mantri Mudra Yojana(PMMY)

Annual Report 2023

xviii
xix
xx
Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Annual Report 2023

xxi
xxii