Pradhan Mantri Jan Dhan Yojana (PMJDY): A Decade of Financial Empowerment and Inclusion
As we celebrate a decade of the Pradhan Mantri Jan Dhan Yojana (PMJDY), it is remarkable to see how this ambitious initiative has transformed India’s financial landscape. Launched on August 28, 2014, by Hon’ble Prime Minister Narendra Modi, PMJDY has been a cornerstone in realizing the vision of inclusive development — ‘Sabka Vikas’. Over the past ten years, PMJDY has brought millions of unbanked citizens into the fold of formal banking, making financial inclusion a reality for all.
Financial inclusion in India has witnessed a paradigm shift since the launch of PMJDY. The scheme was envisioned to provide universal access to banking facilities, ensuring that every adult has at least one basic bank account. PMJDY accounts are offered free of cost with no requirement of minimum balance and no charges. In order to encourage digital transactions, a free of cost RuPay Debit card with in-built accident insurance cover of Rs. 2 lakh is provided to PMJDY account holders. A provision for getting an overdraft of up to Rs. 10,00, providing a financial cushion in times of need.
PMJDY’s journey over the past decade has been nothing short of transformative. It has fundamentally changed the way banks and financial institutions operate, pushing them to reach the remotest corners of the country and serve the “Antyoday” — the poorest of the poor. Today, more than 53 crore Jan Dhan accounts have been opened, with a cumulative deposit balance exceeding Rs. 2.3 lakh crores. This is a testament to the scheme’s success in nurturing a savings culture among previously unbanked individuals. Additionally, Jan Dhan account holders have been provided around 36 crore RuPay debit cards.
The impact of PMJDY is particularly evident in rural and semi-urban areas, where 67% of the accounts have been opened. Moreover, 56% of these accounts belong to women, showcasing a significant step towards gender equality in financial inclusion which in itself is no mean achievement in view of historical biases in ownership of financial assets and limited participation of women in income generating activities.
Though there is no requirement of minimum balance under the scheme the average balance per account has grown to Rs. 4,328, reflecting the growing trust in the banking system and the increasing use of these accounts. Each member of banking fraternity deserves appreciation for their tireless efforts to achieve this remarkable success of PMJDY. It is a matter of great satisfaction that we have achieved a state of near saturation of bank accounts for adults. PMJDY accounts are being used to receive various scheme benefits through DBT, accumulate savings, and access micro-insurance and investment products.
The expansion of banking services under PMJDY is impressive, with 99.95% of all inhabited villages now having a banking outlet within a 5 km radius. This extensive network has facilitated greater financial security for the unorganized workforce through schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), providing essential life and accident cover to millions.
India has earned global recognition for its Digital Public Infrastructure (DPI) platform. Digital public infrastructure spreads transparency, ease and productivity. India has pioneered a layered approach to DPI with the concept of the ‘India Stack’. India’s digital revolution owes much to the foundation laid by PMJDY. The scheme has been a critical pillar in the JAM trinity — Jan Dhan, Aadhaar, and Mobile — which has propelled financial inclusion and the digitization of financial services. The success of the Unified Payments Interface (UPI) and the exponential growth in digital transactions are closely linked to the widespread adoption of PMJDY accounts. With more people holding Jan Dhan accounts, there is immense potential to enhance access to investment and innovative financial products.
The past decade has seen rapid technological advancements, from increased internet penetration and mobile connectivity to the adoption of fintech solutions that have revolutionized access to credit and payment systems. As we look ahead, the next decade of financial inclusion will focus on sustainable development and technology-driven innovations that can transform the lives of common people.
For any society aspiring to rapid growth, robust, efficient, and accessible financial institutions are a must. As we celebrate the achievements of PMJDY, we also set our sights on the future. The next chapter will focus on building a resilient financial system that supports sustainable development and leverages technology to drive inclusive growth.
Article is written by M. Nagaraju , Secretary, DFS, Government of India
