From Exclusion to Sustainability: “A Conceptual Framework Linking PMJDY, Financial Inclusion, and Household Socio-Economic Development"

The PMJDY serves as a vital entry point for integrating marginalised populations into the formal economy, although its ultimate success rests on shifting from a mandate of universal access to one of significant, sustained value. Account ownership alone cannot ensure lasting gains: services must be accessible, trusted, affordable, and relevant to people’s everyday needs, while financial literacy and supportive infrastructure help turn access into sustained use. Therefore, dormant accounts indicate more than partial involvement; they undermine financial inclusion's potential to promote household well-being and overall growth. The scheme's contribution to sustainable development should be understood carefully. Financial inclusion supports livelihoods, improves standards of living, and reduces multidimensional poverty, yet social benefits do not occur automatically or uniformly (Niaz, 2021). PMJDY’s promise thus lies not simply in bringing people into the banking system, but in enabling them to use it with confidence and agency. Ultimately, its success should be judged by whether that participation helps households build resilience and improve their lives over time and not by the number of accounts opened alone. Policymakers may change PMJDY from an outreach tool to an engine of true financial empowerment by grounding the program in the complex reality of its recipients. This evolution requires a shift toward service design that prioritises active engagement over mere enrollment, acknowledging that eradicating financial exclusion is fundamentally linked to the financial literacy and empowerment of the common citizen (Narayanswami & MuthuLakshmi, 2016). Therefore, the real assessment of PMJDY is not the number of households enrolled in the scheme, but whether people trust the agency, understand how to use it, and sustain use. Because sustained use of accounts strengthens household agency and resilience, without that transformation, inclusion remains a promise on paper; with it, PMJDY can become a lasting foundation for equitable socioeconomic development (B. & Durai, 2025; Singh et al., 2021). This evolution represents a vital transition toward mainstreaming the underserved into the national growth narrative, ensuring that financial institutions become active, reliable partners in fostering inclusive and long-term economic stability.

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