This document summarizes a study that examined the relationship between educational level, awareness of the Pradhan Mantri Jan Dhan Yojana (PMJDY) financial inclusion program, and overall financial inclusion in Puri District, Odisha, India. The study involved a survey of 348 respondents across rural and urban areas. The results showed that financial inclusion and PMJDY awareness increases with higher education levels. Specifically, over 60% of respondents with a bank account, debit card, or PMJDY awareness had a primary education or below secondary education. However, households with a graduation level education or higher also demonstrated higher financial inclusion and awareness. The study provides insights but has limitations as a small sample from one district without correlation

1. http://www.iaeme.com/IJMET/index.asp 220 editor@iaeme.com
International Journal of Civil Engineering and Technology (IJCIET)
Volume 10, Issue 1, January 2019, pp.220–226, Article ID: IJCIET_10_01_021
Available online at http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=1
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
©IAEME Publication Scopus Indexed
IMPACT OF EDUCATION ON PMJDY
AWARENESS AND FINANCIAL INCLUSION: A
STUDY OF PURI DISTRICT
Ayushi Raichoudhury
KIIT School of Management, KIIT University, Bhubaneswar, Odisha
ABSTRACT
Education has been considered as an important tool for all sorts of issues. This
paper intends to study the relationship between educational level, PMJDY awareness
and financial inclusion in the district of Puri, Odisha. Data were collected with the
help of a survey technique from 348 respondents in both rural and urban areas of Puri
district. Multistage purposive sampling method was used. Descriptive statistics of the
data collected reveals that financial awareness/ financial inclusion increases with
education level. It is seen that respondents with primary education and below
secondary education have more financial inclusion and PMJDY awareness due to the
reason that most of the respondents belong to that category. It is also evident that
households with graduation and above are also more likely to be financially aware
and financially included. However, to have a complete understanding of the inter
district position of Odisha there is a need for subsequent study.
Keyword: education, financial awareness, PMJDY, financial inclusion, Odisha.
Cite this Article: Ayushi Raichoudhury, Impact of Education on PMJDY Awareness
and Financial Inclusion: A Study of Puri District, International Journal of Civil
Engineering and Technology (IJCIET), 10 (1), 2019, pp. 220–226.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=1
1. INTRODUCTION
Financial awareness cannot be ignored for achieving universal financial inclusion of a
country. The role of education can be treated in the direction of improving financial
awareness and financial inclusion. The World Bank 2017 report shows that educated people
are more likely to be financially aware and thereby financially included. Around 44 percent of
adults with a primary education or less do not have a bank account. Therefore, awareness
about finance is very important for individuals. Jump Start Coalition in 1997 first used the
connection between finance and literacy for Personal Financial Literacy. Previous research
found that individuals with higher general cognitive abilities and numerical calculations tend
to have higher financial literacy (1, 2). However, policy measures to improve financial
awareness through education dates back to 1950s and 1960s (3).

2. Impact of Education on PMJDY Awareness And Financial Inclusion: A Study of Puri District
http://www.iaeme.com/IJCIET/index.asp 221 editor@iaeme.com
Financial awareness is the understanding and knowledge about financial products and
services to enable participation in financial activities. Similar definition is also given by many
studies (3, 4 and 5). Many authors pointed out the importance of financial awareness as a tool
for financial inclusion. Thus it cannot be neglected in order to achieve true financial inclusion
in any country. Besides, low level of financial awareness also hampers financial inclusion.
Further the contribution of education cannot be overlooked to increase financial awareness.
Studies pointed out that higher level of education reduces wrong choices of financial products
(6, 7). The illiterate people are mostly the less financially informed people (8).
Generally it is believed that in order to meet the targets of financial inclusion it is
necessary to impart education and create financial awareness. Literate people make better
financial decisions and manage their funds effectively. On the other hand lack of financial
knowledge results in higher indebtedness. Thus, education is the key to financial inclusion.
The Government of India has adopted initiatives like the Financial Literacy Programme to
increase financial inclusion. Government of Odisha is also taking a number of steps in this
direction. Given this background, this study aims at evaluating the role of education on
financial inclusion status in Odisha based on primary data. This paper intends to examine the
status of financial inclusion an education level in Odisha based on primary data.
2. REVIEW OF LITERATURE
Logically, educated households should make better financial decisions. Studies on financial
inclusion and education have found a positive and significant relationship between education
and the likelihood of increasing financial practices such as savings, borrowing from financial
institution, paying and receiving through bank accounts, etc. Subsequent studies also found
similar views (9, 10, 11 and 12).
Studies also corroborated that financial literacy enhances financial practices and thereby
financial inclusion. These studies have shown that people have inadequate knowledge of
personal finances and they fail to make correct decisions (13, 14, 15, 16, 17 and 18).
Moreover studies also acknowledged the role of financial literacy for financial inclusion
and found a significant relationship between financial literacy and financial inclusion. They
supported the notion that financial literacy has a positive influence on financial inclusion (19,
22). The findings of OECD/INFE Financial Literacy Survey pointed that educated people
make well informed financial product choices, suggesting that there is a wider need to
enhance educational level to support financial inclusion activities (20). Lack of education or
financial literacy is problematic. Awareness about the financial products and services
available is an important pre-requisite for financial inclusion. It was also found that through
analysis of financial literacy data by gender shows that women have lower levels of
knowledge than men (21).
In the same line of thought studies pointed out the positive role of financial literacy and
financial inclusion (14, 23 and 24). However the sample and design of these studies are
specific so they cannot be generalized. All the above studies indicate the relationship between
education, financial awareness and financial inclusion. In the same line this paper intends to
study the relationship between education, financial awareness in terms of PMJDY and
financial inclusion in one of the progressing district of Odisha.
3. DATA AND METHODOLOGY
To address the major objectives of the study, primary and secondary data have been used. A
multi-stage purposive sampling is used to select the state, district, villages and households.
The first stage involved selecting the district of Puri. The second stage consisted of selection
of two blocks from the Puri district which were completely rural in nature. The two selected

3. Ayushi Raichoudhury
http://www.iaeme.com/IJCIET/index.asp 222 editor@iaeme.com
blocks were Nimapara and Gop. Similarly four different wards in the Puri Muncipality were
selected. The third stage of sampling procedure was selection of three gram panchayats from
each block. The gram panchayats were selected on the basis of distance from block
headquarters. In the next stage four villages from each gram panchayat were selected on the
basis of convenience sampling. In the final stage households were selected for interview
through structured questionnaires. A total of 348 households were interviewed, out of which
131 were selected from urban areas and 217 from rural areas. Trained data collectors were
appointed. The questionnaire contained financial inclusion variables, demographic variables
and education level of the respondents. The sample profile of the respondents is presented in
Table 1.
Table 1 Profile of the Respondents
Category Rural Urban Total
Age - Group
15-29 0.9% 3.8% 2%
30 - 44 15.7% 22.9% 18.4%
45 - 59 28.6% 36.6% 31.6%
Above 60 54.8% 36.6% 48%
Gender
Male 81.6% 88.5% 84.2%
Female 18.4% 11.5% 15.8%
Caste
General 60.8% 86.3% 70.4%
SC/ ST/ OBC 39.2% 13.7% 29.6%
Total 217 131 348
It is evident from Table 1 that 48 percent of respondents belong to the age group 60 and
above followed by 31.6 percent in belong to 45 – 59 age-group. While in rural areas 54.8
percent belong to 60 and above category, it is 36.6 in urban areas. Comparing across gender
84.2 percent are male respondents and 15.8 percent are female respondents. More or less
similar pattern is found in rural and urban areas. Adding on while 70.4 percent of the total
sampled households belong to general category, 29.6 percent belong to scheduled caste/
scheduled tribe and other backward class.
4. RESULTS
To understand the education level and financial inclusion status of the households, data were
analyzed using frequency distribution tables and cross-tabulation. Table 2 to 5 describes the
rural urban distribution of respondents on different studied parameters. The educational
qualification of the respondents across rural urban areas is depicted in table 2. It is revealed
that a higher percentage of respondents (64.1 percent) have education above primary and
below secondary across rural urban areas. Majority of urban respondents (42 percent) have
done graduation and above. However, 10.6 percent rural respondents are still illiterates out of
the sampled households.

4. Impact of Education on PMJDY Awareness And Financial Inclusion: A Study of Puri District
http://www.iaeme.com/IJCIET/index.asp 223 editor@iaeme.com
Table 2 Educational Profile of the respondents
Educational Level Rural Urban Total
Illiterate 10.6% 0% 6.6%
Literate below Primary 3.7% 3.1% 3.4%
Primary and Secondary 75.1% 45.8% 64.1%
Intermediate 3.7% 9.2% 5.7%
Graduate and Above 6.9% 42% 20.1%
Total 217 131 348
Table 3 shows the cross-tabulation between adults with a bank account and educational status of
the respondents across rural and urban areas. Adults with a bank account indicate the financial
inclusion status of the respondents in terms of penetration of the banking services. It is evident from
Table 3 that a higher percentage of respondents (63.9 percent) with a bank account have education
above primary and below secondary. While 75.4 percent fall in that category in the rural areas, it is
45.4 percent in the urban areas. However, 42.3 percent of adults with a bank account in the urban areas
hold graduation and other higher degrees. On the other hand still 10 percent respondents with a bank
account are illiterates in the rural areas. It is thus imperative that educated people have higher financial
inclusion.
Table 3 Adults with a bank account based on Educational status of the respondents
Educational Level Adults with a Bank account
Rural Urban Total
Illiterate 10% 0% 6.2%
Literate below Primary 3.8% 3.1% 3.5%
Primary and Secondary 75.4% 45.4% 63.9%
Intermediate 3.8% 9.2% 5.9%
Graduate and Above 7.1% 42.3% 20.5%
Total 217 131 348
Table 4 shows adults with a debit card based on their educational level in rural and urban areas.
55.3 percent respondents with education above primary and below secondary own a debit card.
Comparing across rural-urban divide 70.2 percent belong to the same category in rural areas, while it
is 38.8 percent in urban areas. However, 49.5 percent respondents with graduation and above own a
debit card in urban areas. For rural areas it is 10.5 percent for the same category. However, it is
noteworthy that adults with a bank account increases with education. Since maximum respondents are
educated above primary and below secondary, the respondent with bank account is also high in that
category.
Table 4 Adults with a debit card based on Educational Profile of the respondents
Educational Level Adults with a Debit card
Rural Urban Total
Illiterate 12.3% 0% 6.5%
Literate below Primary 1.8% 1.9% 1.8%
Primary and Secondary 70.2% 38.8% 55.3%
Intermediate 5.3% 9.7% 7.4%
Graduate and Above 10.5% 49.5% 29.0%
Total 217 131 348

5. Ayushi Raichoudhury
http://www.iaeme.com/IJCIET/index.asp 224 editor@iaeme.com
Table 5 presents the Pradhan Mantri Jan Dhan Yojana (PMJDY) awareness of the
respondents based on their education level among the sampled households and across rural-
urban divide. Among the rural areas it is seen that awareness is high (72.2 percent) among the
respondents who are educated above primary and below secondary. In urban areas 46.1
percent fall in that category. Out of the total sampled households 63.6 percent fall in that
category. It is also imperative to note that PMJDY awareness increases with education. Since
maximum respondents are educated above primary and below secondary, the awareness is
also high in that category.
Table 5 Educational level and PMJDY Awareness of the respondents
Educational Level Awareness regarding PMJDY
Rural Urban Total
Illiterate 11.1% 0% 7.4%
Literate below Primary 4.4% 1.1% 3.3%
Primary and Secondary 72.2% 46.1% 63.6%
Intermediate 4.4% 10.1% 6.3%
Graduate and Above 7.8% 42.7% 19.3%
Total 217 131 348
5. DISCUSSION AND CONCLUSION
Some of the significant findings of the study are:
 Majority of the respondents have education above primary but below secondary. However in
urban areas still a chunk of the respondents are graduates and above.
 A higher percentage of respondents with a bank account have primary education but below
secondary.
 Majority of respondents with a debit card also have primary education but below secondary
followed by graduation and above.
 PMJDY awareness is more among those respondents who have primary education but below
secondary followed by graduates.
The findings suggest that educated respondents have bank account, debit cards and are
aware about PMJDY in comparison to illiterate respondents. However, the study has certain
imitations which cannot be overlooked. First, the study is limited to one district. Second, the
findings are based on descriptive analysis and do not reflect the correlation between financial
inclusion, PMJDY awareness and educational level. However, the findings presented the
personal observation of the researcher through well executed field survey on the selected
variables. Nevertheless, the finding that education increases awareness and financial inclusion
is still a major insight for the policy makers. Well planned action in this direction is needed to
improve financial inclusion. However, it is quite clear that financial position has improved
significantly.

6. Impact of Education on PMJDY Awareness And Financial Inclusion: A Study of Puri District
http://www.iaeme.com/IJCIET/index.asp 225 editor@iaeme.com
REFERENCES
[1] Banks, J. and Z. Oldfield, “Understanding Pensions: Cognitive Function, Numerical
Ability and Retirement Saving,” Fiscal Studies, 2007, 28 (2).
[2] Gerardi, Kristopher, Adam Hale Shapiro, and Paul S. Willen, “Subprime Outcomes: Risky
Mortgages, Homeownership Experiences, and Foreclosures,” Federal Reserve Bank of
Boston Working Paper 07-15, 2007.
[3] Bernheim, Douglas B., Daniel M. Garrett, and Dean M. Maki, “Education and saving: The
long-term effect of high school financial curriculum mandates,” Journal of Public
Economics, 2001, 80 (3), 435–465.
[4] Hastings JS, Mitchell OS. 2011. How financial literacy and impatience shape retirement
wealth and investment behaviors. NBER Work. Pap. 16740
[5] OECD (2011), Education at a glance 2011: OECD Indicators, OECD Publishing.
[6] Moore D. 2003. Survey of financial literacy in Washington State: knowledge, behavior,
attitudes, and experiences. Tech. Rep. 03-39, Soc. Econ. Sci. Res. Center, Washington
State Univ., Pullman
[7] Benova L, Macleod D, Footman K et al. 2015. Role of the private sector in childbirth
care: cross-sectional survey evidence from 57 low- and middle-income countries using
Demographic and Health Surveys. Tropical Medicine & International Health 20: 1657–73.
[8] Jappelli, Tullio and Mario Padula (2011), “Investment in Financial Literacy and Saving
Decisions”, CSEF Working Paper No. 272.
[9] Hilgert, M. A., Hogarth, J. M., & Beverly S.G. (2003) Household financial management:
The connection between knowledge and behavior. Federal Reserve Bulletin, 89 (7), 309-
322
[10] Ameriks, John, Andrew Caplin, and John Leahy. (2003). “Wealth Accumulation and the
Propensity to Plan.” Quarterly Journal of Economics 68, 1007-1047.
[11] Lusardi, A. (2004) Saving and the effectiveness of financial education, in Pension Design
and Structure: New Lessons from Behavioral Finance, Mitchell, O.S. & Utkus, S.P., eds.
Oxford: Oxford University Press, 157-184.
[12] Lusardi, Annamaria, and Olivia S. Mitchell. (2011) “Financial Literacy and Planning:
Implications for Retirement Wellbeing,” In Financial Literacy: Implications for
Retirement Security and the Financial Marketplace. Eds A Lusardi and O.S. Mitchell .
Oxford: Oxford University Press forthcoming.
[13] Lusardi, Annamaria, and Olivia S. Mitchell. (2007a), “Baby Boomer Retirement Security:
The Role of Planning, Financial Literacy, and Housing Wealth,” Journal of Monetary
Economics 54, pp. 205-224.
[14] Jamison, Julian C., Dean Karlan, and Jonathan Zinman (2014), Financial Education and
Access to Savings Accounts: Complements or Substitutes? Evidence from Ugandan
Youth Clubs, NBER Working Paper 20135.
[15] van Rooij, Maarten, Annamaria Lusardi, and Rob Alessie. (2011). “Financial Literacy and
Stock Market Participation.” Journal of Financial Economics forthcoming.
[16] Drexler, Alejandro, Fischer, Gregory and Schoar, Antoinette (2014) Keeping it simple:
financial literacy and rules of thumb. American Economic Journal: Applied Economics, 6
(2). pp. 1-31. ISSN 1945-7782
[17] Luigi Guiso Eliana Viviano (2015) How Much Can Financial Literacy Help? Review of
Finance, Volume 19, Issue 4, 1 July 2015, Pages 1347–
1382,https://doi.org/10.1093/rof/rfu033
[18] Lusardi, Annamaria and Peter Tufano (2015), Debt Literacy, Financial Experiences, and
Overindebtedness, Journal of Pension Economics and Finance, 14(04), 332-368.

7. Ayushi Raichoudhury
http://www.iaeme.com/IJCIET/index.asp 226 editor@iaeme.com
[19] Beck, Thorsten and Augusto de la Torre, 2007, “The Basic Analytics of Access to
Financial Service: Financial Markets, Institution and Instruments,” World Bank
Publications, Vol. 17, pp. 79-117 (Washington: World Bank).
[20] OECD/INFE (2013a), Financial literacy and inclusion: Results of OECD/INFE survey
across countries and by gender
[21] Atkinson, A. and F-A. Messy, (2012), “Measuring Financial Literacy: Results of the
OECD / International Network on Financial Education (INFE) Pilot Study, OECD
Working Papers on Finance, Insurance and Private Pensions, No. 15, OECD Publishing.
http://dx.doi.org/10.1787/5k9csfs90fr4-en
[22] Allen, M. W., Edwards, R., Hayhoe, C. R., & Leach, L. (2007). Imagined interaction,
attitudes towards money and credit, and family coalitions. Journal of Family and
Economic Issues, 28, 3-22.
[23] Cole, S., and N. Fernando (2008). Assessing the importance of financial literacy. Asian
Development Bank: Finance for the poor.
[24] Stango, V. and J. Zinman (2009). Exponential growth bias and household finance. The
Journal of Finance 64 (6), 2807–2849.