Vol. 3, Issue 5, Part I (2017)

Abstract
Financial system is a backbone for the working of Economies in modern day world. The essential role played by it, as an intermediary between the surplus units to the deficit units, in the increase of National Income is favoured by most of the economists. The developing countries not only face the challenge of increasing their income but also to make that improvement inclusive in nature i.e. to make the benefits reach every citizen of the economy. Financial development is one such tool. Financial development is defined as the development in the size, efficiency and stability of and access to the financial system. India being on its path of development is no such exception in this regard. Many efforts have been undertaken by the government of India since independence to make financial inclusion a reality. These included the Nationalisation of banks, Directed Credit programmes etc and a recent policy of Swabhiman. Jan Dhan Yojana in India is one such bold step on part of the Modi government in this regard. This scheme was announced in Prime Minister Narendra Modi’s first Independence Day address on 15^th August, 2014. This policy included that Account holders will be provided bank accounts with no minimum balance, RuPay debit cards will be issued, Accidental insurance cover of ₹1 lakh; After six months of opening of the bank account, holders will be eligible for ₹5,000 overdraft from the bank and with the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phone. Also, Mobile banking for the poor would be available through National Unified USSD Platform (NUUP).With three years of its introduction and many accounts being opened under zero-balance, it becomes imperative to check whether it has lived up to its expectations or not. The paper will theoretically examine the Commercial Bank outreach in terms of opening of accounts. Also, as efficiency has been the casualty with any bank regulation, the paper will in theory analyse the perspective and prospects. Undoubtedly, the number of accounts opened has been tremendous all these years. Also, the amount credited is low which again puts a question mark over its role as an efficiency improvement tool. The paper concludes that although such policies are welcome but the provisions must be made so that the banks do not bear the brunt in terms of their efficiency.