Pradhan Mantri Jan Dhan Yojana (PMJDY), the biggest Financial Inclusion initiative in the world, aiming at the liberation of poor from the vicious cycle of poverty, was announced by Shri Narendra Modi (PM of INDIA) on 15^th august 2014. As NSSO data (59^th round) reveals that 45.9 million farmer household (51.4%) out of a total of 89.3 million households do not access their credit, either from institutional or non-institutional sources, shows the extent of existing financial exclusion in India. Currently it is estimated that the recurring credit requirements of such small/micro businesspersons and households aggregate Rs 20,00,000 crore which is almost 80%, is met from the non-formal sector. Basically, Financial Inclusion helps in building domestic savings, domestic and financial sector resilience and stimulates business and entrepreneurial activity. The research paper aims at analysing the progress of PMJDY and its impact on the level of Financial Inclusion in India. The paper also aims to study its effect on the level of Social Inclusion. The study is based on secondary data, collected from reports and working papers of Reserve Bank of India, reports of GOI, reports and working papers of World Bank, various related research papers and Newspapers.

Keywords: PMJDY, Financial Inclusion, Social Inclusion, Domestic Saving.