International Journal of Business Management & Research - Volumes & Issues - Volume 16: June 2026, Issue 1

Financial Inclusion 2.0 Opening a Bank Account is no Longer Enough

Authors

Lalan Kumar Mishra

DOI Number

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Keywords

Financial Inclusion, Financial Inclusion 2.0, Pradhan Mantri Jan Dhan Yojana (PMJDY), Digital Public Infrastructure (DPI), Financial Empowerment, Financial Literacy, India

Abstract

India has made substantial progress towards expanding banking access, driven by the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Aadhaar-Mobile-UPI (JAM) Trinity. Yet, the opening of a bank account is not the same as its meaningful use. This paper argues that India’s financial inclusion story must now move into a second phase, referred to here as Financial Inclusion 2.0, in which the policy focus shifts from account ownership to active usage, financial capability, and improved household outcomes. Drawing on Ministry of Finance and Reserve Bank of India data, the paper shows that a considerable share of Jan Dhan accounts remain dormant or are used primarily to receive government transfers, that women’s accounts are, in some cases, operated by other family members, and that rural households continue to depend on informal credit. Comparative experiences from Kenya’s M-Pesa, Brazil’s Pix, and Singapore’s PayNow are used to draw lessons for strengthening India’s Digital Public Infrastructure. The paper proposes a six-point agenda covering active account usage, credit access for women and small farmers, insurance and pension penetration, financial education, women’s control over their own accounts, and digital trust, and argues that these priorities should anchor the next phase of India’s financial inclusion policy.

References

  • Census of India. (2001). Provisional population totals: Banking and financial services. Office of the Registrar General & Census Commissioner, India.
  • Ministry of Finance, Department of Financial Services. (2026). Pradhan Mantri Jan Dhan Yojana: Progress report as on 30 June 2026. Government of India. https://pmjdy.gov.in
  • Mishra, L. K. (2025). Quality over quantity? A new lens on financial inclusion. International Journal of Management, 16(5), 241–245. https://doi.org/10.34218/IJM_16_05_014
  • Reserve Bank of India. (2024a). Annual report 2023–24. Reserve Bank of India.
  • Reserve Bank of India. (2024b). Financial Inclusion Index (FI-Index) for India. Reserve Bank of India.

World Bank. (2022). The Global Findex Database 2021: Financial inclusion, digital payments, and resilience in the age of COVID-19. World Bank.

How to cite

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Journal

International Journal of Business Management & Research

ISSN

2249-2143

Periodicity

Bi-Annually