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Abstract
The importance of financial inclusion in bringing the unbanked population into the formal banking system is acknowledged worldwide. The present study is an attempt to examine the current status of banking in Andhra Pradesh and to evaluate the progress & performance of financial inclusion, as indicated by number of accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme and the enrolments made under the social security schemes like Prandhan Mantri Surakshit Bhima Yojana (PMSBY), Prandhan Mantri Jeevan Jyothi Bhima Yojana (PMJJBY) and Atal Pension Yojana (APY). The significant observations from the study are that, as on 31st March 2020, the total banking outlets in Andhra Pradesh were 17,296, of which the highest share of the bank branches was in rural areas (35 %) followed by the semi urban areas (31%), urban (25%) and metro areas (9%). The progress of PMJDY and the other social security schemes was also highly commendable during the period 2015-16 to 2019-20, but the market penetration of the social security schemes was low as compared to the accounts opened under the PMJDY in Andhra Pradesh. The performance of Regional Rural Banks (RRBs) was also not splendid in social security schemes as compared to the other public sector banks and private sector banks. Thus the huge potential in insurance market has to be tapped by the banks by explaining the benefits of insurance as a measure against risk.