Why in news?
The Pradhan Mantri Jan Dhan Yojana (PMJDY) completed 11 years on 28 August 2025. Nearly every household and over 90 percent of adults in India now have a bank account, making PMJDY the world’s largest financial inclusion programme.
What is PMJDY?
Launched in 2014, PMJDY aims to provide universal access to banking services for the unbanked. It promotes zero‑balance savings accounts, RuPay debit cards, accident and life insurance, pension schemes and direct benefit transfers.
Progress over eleven years
- Account growth: More than 56.2 crore accounts have been opened, up from about 15 crore in 2015.
- Women’s participation: Women hold around 56 percent of Jan Dhan accounts, improving their financial autonomy.
- Rural outreach: Around 37.5 crore accounts belong to rural and semi‑urban areas. Over 16.2 lakh “Bank Mitras” (banking correspondents) provide doorstep services in remote villages.
- Deposits: Total balances stand at â‚ą2.68 lakh crore, about 17 times the amount in 2015. This shows a shift from mere account opening to actual savings.
- Digital ecosystem: More than 38.7 crore RuPay cards have been issued. The scheme has supported the growth of Unified Payments Interface (UPI) transactions.
Impact
- Direct Benefit Transfers: Subsidies for LPG, pensions and pandemic relief have been delivered directly to beneficiaries, reducing corruption and delays.
- Crisis response: During demonetisation in 2016 and the Covid‑19 pandemic, Jan Dhan accounts enabled the government to transfer funds quickly to millions of poor households.
- Financial security: Many Jan Dhan accounts are linked to micro‑insurance schemes and the Atal Pension Yojana, offering a basic safety net to informal‑sector workers.
- Rural banking access: Nearly all villages have a bank branch, banking correspondent or India Post Payments Bank outlet within 5 kilometres.
Issues and challenges
- Dormant accounts: Some accounts are inactive, showing limited use beyond the initial opening.
- Credit gap: Many account holders still lack access to formal credit and rely on informal lenders.
- Digital divide: Low smartphone penetration and digital illiteracy in smaller towns limit full use of digital banking.
- Financial literacy: Beneficiaries are often unaware of linked insurance and pension schemes.
- Dependence on transfers: Accounts are used mainly for receiving subsidies rather than for saving or investing.
Way forward
- Activate dormant accounts: Run awareness campaigns and create incentives for regular transactions.
- Expand credit linkages: Connect Jan Dhan account holders to micro‑credit and small loans to support entrepreneurship.
- Improve financial literacy: Use local languages and community outreach to educate people about savings, insurance and pensions.
- Leverage technology: Develop voice‑based and AI‑driven banking tools for people with low literacy or without smartphones.
- Broaden social security: Extend Jan Suraksha schemes so that more informal workers gain insurance and pensions.
- Encourage savings and investment: Help account holders use their balances to invest in small savings schemes or mutual funds.
Conclusion: PMJDY has transformed financial inclusion in India. The next decade should focus on deepening usage, enhancing financial literacy and expanding access to credit and insurance so that Jan Dhan accounts become engines of inclusive growth.