As per The Committee on Financial Inclusion, Chairman: Dr. C. Rangarajan, 2008, Financial inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. In this connection, the mission of the Pradhan Mantri Awas Yojana (Urban), 2015 in India was made to provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/ beneficiaries by 2022. Scope- The study revealed the role of Pradhan Mantri Awas Yojana (Urban), 2015 as an important tool of Financial Inclusions in India. A diagram was formed to establish that role. Findings & Conclusions- The Mission, in order to expand institutional credit flow to the housing needs of urban poor implemented credit linked subsidy component as a demand side intervention. Credit linked subsidy was provided on home loans taken from banks by eligible urban poor (economically weaker section/ lower income group) for acquisition and construction of house. In cities many of the urban poor specially who lived in slum areas did not have any bank account or they didn’t get any financial service from financial institution. But to get subsidy to reconstruct/renovate their houses and to improve their lifestyle they must take the opportunity to get housing loans from this yojana. Therefore they have to open a bank account which will be linked with their Aadhaar number, must fulfill the aim of financial inclusion.
