| Abstract: |
Financial inclusion remains a critical challenge for Below Poverty Line (BPL) communities in India, particularly in urban slum areas where institutional barriers and socio-economic constraints limit access to formal banking services. This study assesses the effectiveness of policy-driven financial inclusion strategies implemented in Delhi's slum areas, examining the impact of initiatives such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfer (DBT), and microfinance interventions. Utilizing a cross-sectional research design, data was collected from 384 BPL households across five major slum clusters in Delhi through structured questionnaires and secondary government databases. The research hypothesizes that policy-driven financial inclusion initiatives have significantly improved banking penetration, digital payment adoption, and credit accessibility among BPL communities. Results indicate that while account ownership has reached 78.4%, active account usage remains at 43.2%, revealing a substantial dormancy challenge. Digital payment adoption stands at 34.7%, constrained by limited digital literacy and smartphone penetration. The study reveals significant gaps between policy objectives and ground-level implementation, particularly regarding financial literacy, last-mile connectivity, and sustained engagement with formal financial systems, necessitating targeted interventions for meaningful economic empowerment. |
