1.1 INTRODUCTION:

“Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream institutional players”(Rangarajan, 2008).

As a proactive measure, the Reserve Bank of India (RBI) in its annual policy statement for the year 2005-06, while recognizing the concerns in regard to the banking practices that tend to exclude rather than attract vast sections of population, urged banks to review their existing practices to align them with the objective of financial inclusion.

In the mid-term review of the policy (2005-06), the RBI exhorted the banks, with a view to achieving greater financial inclusion, to make available a basic banking ‘no frills’ account either with nil or very minimum balances as well as charges that would make such accounts accessible to vast sections of the population (RBI, 2012). With a view to encourage transactions in no frill accounts, RBI has advised banks to provide small Over Drafts (ODs) in such accounts. No frill accounts make access to savings bank accounts affordable for the poor. Monetary Policy Statement for the year 2012-13 announced on August 17, 2012, stated that all the existing ‘no frills’ account should be converted to ‘Basic Savings Bank Deposit Account’ (BSBDA). In August 2014, Government of India promoted a special scheme called as "` (PMJDY)" which is a national goal for financial inclusion.

1.2 REVIEW OF LITERATURE:

In order to apprehend the in-depth of the research problem, the researcher has extensively reviewed the research paper through various journals, and conference papers. A few of them are discussed below:

People in the rural households have a wrong misconception that banks are meant for only literate and richer individuals. This reason seems to be an important cause for exclusion. A traditional banking transaction happens at Brick and mortal method of banking branches. But more use of banks could take place if door step banking is provided to the people especially to the rural households and individuals where no bank branches s is available at an affordable distance by Kempson (2006). In many of the developing countries, a large part of the population, especially low-income people have very little access to banking. So they are depending on informal sources such as money lenders and others at a higher cost of borrowing. The situation is worst in the case of least developed countries by Srikanth. R , (2013).

An access to bank account will enable an individual from a poor household to perform better financial functions such as increase savings from his income, accessing credit, insurance, pensions, making loan or premium payment through the availability of bank account by Mohan, (2006).

Nitin Kumar (2013) in his study on Financial Inclusion and its Determinants provides empirical analysis that has been carried out in 29 major states from 1995 to 2008. The result shows that supply side of the banking services improves banking activity as shown in penetration indicators. The study finds that Socio economic factor and environment of a region are very crucial in improving the banking habit of the people. A recent study by Kunthai , (2014) on the recent developments of Financial Inclusion in India with special reference to National mission of “Pradhan Mantri Jan-Dhan Yojna (PMJDY)”, has assessed the progress, road blocks, in the process of Financial Inclusion and has suggested strategies to improve the coverage of banking in rural population for Pradhan Mantri Jan-Dhan Yojna (PMJDY)”, scheme.

1.3 STATEMENT OF THE PROBLEM:

Financial inclusion is a medium of delivering banking services at an affordable cost to the majority sections of disadvantaged and low-income groups who tend to be excluded from the formal banking channel. Despite widespread expansion of the banking sector during the last three decades, a substantial proportion of the households, especially the underprivileged sections of the society in rural areas, are at present outside the coverage of the formal banking system. Thus, the daunting task faced by the banking sector and the government is to bring the excluded people within the inclusive segment. Minimal account activity and dormancy raise questions for financial inclusion longer term. It is in this context, the researchers have made an attempt to study the context the researcher has attempted to study reasons of account opening and transactional usage behavior of Pradhan Mantri Jan Dhan Yojana Accounts in Dindigul district. Hence, this study has been undertaken

1.4 SCOPE OF THE STUDY:

The study attempts to explore the reasons for opening of PMJDY accounts, frequency of transactions, and to analyze the transactional usage behavior in Pradhan Mantri Jan Dhan Yojana accounts. Scope of the study is limited to Dindigul district and focused on public sector banks customer base for the research.

1.5 OBJECTIVE OF THE STUDY:

1) To identify the reasons of account opening among the rural customers of Pradhan Mantri Jan Dhan Yojana (PMJDY).

2) To analyze the transactional usage behavior of Pradhan Mantri Jan Dhan Yojana (PMJDY) account after their account opening.

1.6 RESEARCH HYPOTHESIS:

For the fulfilling the research objective of the study the author has developed research hypothesis in analyzing the transactional usage behavior of operating the bank account.

· H1: There is a significant difference between Gender with respect to frequency of savings on bank account

· H2: There is a significant difference between Socio economic variable and level of usage of bank account

· H3: There is statistically significant relationship between financial literacy and level of usage of bank account

1.7 RESEARCH METHODOLOGY:

In order to understand and analyze the transactional usage behavior among customers of Pradhan Mantri Jan Dhan Yojana account, primary data and secondary data were used for the study. Secondary data were collected from the lead bank office in Dindigul district. An interview schedule with structured and unstructured questions was used to fulfill the research objective. A convenience method of sampling is used to collect the data from the respondents of various blocks in Dindigul district. A pilot study has been conducted with thirty samples and all psychometric checks have been performed. Later 100 samples of data were collected from the account holders of PMJDY and have been used for further analysis.

1.8 RESULTS AND DISCUSSIONS:

1.8.1 Objectives of Opening Bank Account:

Objectives of opening bank account help to gauge the rationale behind opening PMJDY bank account among the rural customers. The table 1 explains the objectives of account opening.

Table 1: Objectives of opening bank account and reason of savings

S. No	Objectives of opening bank account	Frequency	Percent (100)
1	Saving To get government benefit Easy way to open bank account Day work scheme wages	54 7 1 38	54.0 7.0 1.0 38.0
2	Reason of Savings
	Child education Small trade To meet expenses Urgency Loan payment	25 14 57 1 3	25.0 14.0 57.0 1.0 3.0

The table 1 explicit the objectives of opening a bank account among the customers of BSBDA. The result obtained indicates that the majority of the customers have opened their bank account for the purpose of savings and 100 days of employment. This signifies that customers of BSBDA have the urge to do savings in their bank account. The reason for savings among the rural customers helps to understand the motivation for doing savings in bank account. Based on the data collected the results are explicated in Table 1. From the Table 1, it expounds the major reason for saving is to manage expenditure (57 percent), Child education (25 percent), and followed by small trade of business (14 percent). Thus the majority of the rural customers prefer savings for managing the expenditure and savings for the children’s education. Also rural customers prefer savings for doing small trade of business.

1.8.2 Frequency of Transactions:

Frequency of transactions made by the rural customers decides the active usage of a bank account. Table 2 elucidate the frequency of transactions in to weekly, monthly transactions, receipt of government benefits, and never done any transactions respectively. From the information obtained on frequency of transactions, it shows that the majority of the customers do transactions at the time of receiving government benefits (36 percent) monthly once (34 percent), once in a week (20 percent), never done any transactions respectively (36 percent).

Table 2: Frequency of Transactions

Particular	Frequency	Percent
Once in a week	20	20.0
Once in a month	34	34.0
At the time of government benefits	36	36.0
Never	10	10.0
Total	100	100.0

Thus the major reason of operating the bank account was only to receive or to withdraw the government benefits which are a major concern. Thus the rural customers of PMJDY should be educated more about the need of regular operating the bank account and benefit of effective utilization by means of various campaigns and programs conducted for the rural people.

1.8.3 Relationship between Gender and Frequency of Savings:

The Table 3 explains the relationship between the Gender and Frequency of Savings. The t- values for Gender on Frequency of Savings is found to be -0.204 and p value 0.839 respectively.

From the table 10, the Pearson correlation value is 0.097 and the p value observed is 0.338 which is greater than the significant value of 0.05. Hence there is no correlation between the two variables exist.

Figure 1: Correlation between Financial literacy and Level of usage of bank account

The figure 1 explains there is no correlation among the financial advice provided to the customers. Hence it is explains that the financial advice doesn’t influence better usage of bank account or no proper financial education provided among the rural customers.

1.9.8 SUMMARY AND FINDINGS:

Objectives of opening bank account helps to gauge the rationale behind opening PMJDY bank account among the rural customers. The majority of the customers have opened their bank account for the purpose of savings and 100 days of employment. The reason for savings among the rural customers helps to understand the motivation for doing savings in bank account. It was found the majority of the rural customers prefer savings for managing the expenditure and savings for the children’s education. Also rural customers prefer savings for doing small trade of business. It is found the major reason of operating the bank account was only to receive or to withdraw the government benefits which are a major concern. Hence the there is a significant difference in frequency of savings by Gender is not supported. The Relationship between demographic variables such as age, gender, income, and distance of bank branch has no significant difference with level of usage of bank account among the rural customers of PMJDY. Hence there is no significant difference between age group and level of usage of bank account. Only marital status has a significant difference in level of usage of bank account. The relationship between financial literacy and Level of usage of bank account customers of PMJDY has no correlation. Further the financial advice doesn’t influence better usage of bank account or no proper financial education provided among the rural customers as there is no correlation between the two variables exists.

1.10. REFERENCES:

1 Government of India (2008) “Report of the Committee on Financial Inclusion”, Chairman: Dr C. Rangarajan.

2 Kempson, Elaine (2006) “Policy level response to financial exclusion in developed economies: lessons for developing countries”, Paper for Access to Finance: Building Inclusive Financial Systems, World Bank, Washington DC.

3 Srikanth R. (2013) “A study on Financial inclusion – Role of Indian Banks in reaching out to the unbanked and backward areas”, International Journal of Applied Research and Studies, 2(9).

4 Mohan and Rakesh. (2006) “Economic Growth, Financial Deepening and Financial Inclusion”, Retrieved from Address by Dr. Rakesh Mohan at the Annual Bankers' Conference, Hyderabad.

5 Nitin Kumar, (2013) “Financial inclusion and its determinants: evidence from India, Journal of financial economic policy, Vol.5 (1), 4-19.

6 Kunthai, R. (2014) A studies on PMJDY: A new drive towards financial inclusion in India, Zenith International Journal of Business Economics and Management Research, 4(11), 10.

Received on 26.06.2017 Modified on 31.07.2017

Asian J. Management; 2017; 8(4):1237-1241.

DOI: 10.5958/2321-5763.2017.00188.3

Variable	Gender (n=380)				t value	P value
	Male (n=35)		Female (n=65)
	Mean	SD	Mean	SD
When do you save money	2.37	1.03	2.42	1.02	-0.204	0.839

	Sum of Squares	df	Mean Square	F	Sig.	Hypothesis
Between Groups	6.852	2	3.426	1.441	242
Within Groups	230.538	97	2.377			Rejected
Total	237.390	99

	Sum of Squares	df	Mean Square	F	Sig.	Hypothesis
Between Groups	350	2	.175	.757	.472	Rejected
Within Groups	22.400	97	.231
Total	22.750	99

	Sum of Squares	df	Mean Square	F	Sig.	Hypothesis
Between Groups	.401	2	.200	3.709	.028
Within Groups	5.239	97	.054
Total	5.640	99				Accepted

	Sum of Squares	df	Mean Square	F	Sig.	Hypotheis
Between Groups	.968	2	.484	.526	.593	Rejected
Within Groups	89.272	97	.920
Total	90.240	99

		level of usage in bank account	The bank financial advice is useful to operate the bank account
level of usage in your bank account	Pearson Correlation	1	.097
	Sig. (2-tailed)		.338
	N	100	100
The bank financial advice is useful to operate the bank account			1
	Sig. (2-tailed)	.338
	N	100	100