Review of Pradhan Mantri Jan Dhan Yojana and State of Employment in India

Abstract

The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August 2014 by Prime MinisterNarendra Modi with the aim of promoting financial inclusion by offering banking facilities to every householdIndian. Prior to this scheme, a large segment of India’s population, especially in rural areas, remained unbankedand thus outside the formal economic system. This limited their access to credit, insurance, pension, andemployment-linked benefits. With over 50 crore accounts opened as of March 2024, the PMJDY has created aplatform for direct benefit transfers (DBT), micro-finance, and employment-oriented government schemes likeMGNREGA, PMEGP, and Start-Up India. The availability of bank accounts has allowed beneficiaries to receivewages and subsidies directly, ensuring transparency and reducing leakages. Studies have shown thatentrepreneurial activity, rural employment, and women participation in the labor market have seen measurablegrowth post-implementation. This research paper seeks to explore how PMJDY has played a catalytic role inincreasing employment opportunities, facilitating job linkages, and creating a more transparent wage-paymentsystem across various employment-generating schemes in India.

Keywords: Financial Inclusion, Jan Dhan Yojana, Rural Employment, Direct Benefit Transfer, MicroCredit