Context

Financial inclusion serves as a foundational pillar for empowering individuals, driving economic growth, alleviating poverty, and advancing social equity. Recognising this, the Government of India launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28 August 2014. Its objective was to ensure universal access to financial services, especially targeting marginalised and underserved populations, thereby enabling their participation in the formal financial system.

Genesis and Objectives of PMJDY

When PMJDY was launched, nearly 7.5 crore households across India remained outside the formal banking ecosystem. The scheme was conceived as a corrective measure to this financial exclusion.

PMJDY was designed with a clear mandate:

• To provide every household, especially those on the margins, with access to a basic bank account.
• To integrate the informal sector into the formal economy through banking services.
• To enable direct benefit transfers (DBT), thereby reducing leakages and dependency on intermediaries.
• To eliminate the reliance on informal credit systems and encourage habits of savings and insurance.

Key Achievements of PMJDY

Expansion of Bank Account Ownership

Prior to the launch of PMJDY, only 59% of Indian households and 35% of adults had bank accounts. This limited access inhibited formal financial participation.

By 2024, the impact of PMJDY has been transformative:

• Nearly 100% of households and over 90% of adults now possess bank accounts.
• According to the World Bank’s Global Findex Report 2024, 89% of individuals aged 15 and above in India have bank accounts.
• The National Sample Survey (NSS) 2022–23 further reinforces this progress, reporting that 94.65% of Indian adults now own a bank account.

Growth in Account Numbers and Deposits

Since its inception, over 56.2 crore PMJDY accounts have been opened—a nearly fourfold increase since March 2015. Of these:

• 37.5 crore accounts are in rural and semi-urban areas, highlighting the rural focus of the initiative.
• 18.7 crore are in urban centres.

Women’s financial inclusion has been a standout feature, with 56% of all PMJDY accounts held by women. This represents a deliberate effort to empower women financially and integrate them into formal banking.

The total deposits in PMJDY accounts have reached ₹2.68 lakh crore, marking a 17-fold surge from 2015. This signifies growing trust in the formal banking system and an increasing culture of saving.

Expansion of the Banking Infrastructure

To support widespread banking access:

• Over 16.2 lakh Bank Mitras (business correspondents) have been deployed to deliver doorstep banking services in remote and underserved areas.
• 99% of villages now have a banking access point—whether through a branch, a business correspondent, or the India Post Payments Bank—within a 5-kilometre radius.

Role of PMJDY in Welfare Delivery and Crisis Management

PMJDY accounts have revolutionised welfare delivery by enabling direct, transparent, and efficient transfer of subsidies and financial aid:

• During critical periods such as demonetisation and the COVID-19 pandemic, PMJDY accounts became a critical tool in ensuring fast and direct financial relief to millions.
• The elimination of intermediaries has reduced corruption and delays in welfare distribution.

Integration with Digital and Financial Products

The PMJDY scheme has significantly advanced digital and financial integration:

• Over 38.7 crore RuPay debit cards have been issued, facilitating access to digital transactions.
• PMJDY accounts are increasingly being used not just for DBT, but also to access other financial services such as micro-insurance, pensions, and investments.

The Jan Suraksha schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), extend life and accident insurance coverage of ₹2 lakh to account holders, especially benefiting those in the unorganised sector. This has provided a layer of financial security to vulnerable segments.

Additionally, the rise of PMJDY accounts has bolstered the usage of UPI and digital payments infrastructure, aligning with India’s broader digital economy goals.

Future Prospects and Innovation Potential

Looking ahead, PMJDY can be further strengthened through technological innovations and targeted outreach:

• Emerging technologies like artificial intelligence (AI) and natural language processing (NLP) can enable voice-based transaction authentication, removing the dependency on smartphones or internet connectivity—especially relevant for remote and low-literacy populations.
• Enhanced digital infrastructure and logistics are enabling the growth of e-commerce in Tier 4 and Tier 5 towns, powered by fast and reliable delivery systems.

The government has also launched a financial inclusion saturation drive, wherein banks are actively organising outreach camps to:

• Update KYC details for existing customers,
• Open new accounts for the unbanked,
• Promote micro-insurance and pension schemes,
• Reactivate dormant or inactive accounts under PMJDY

Conclusion

As the world’s largest financial inclusion initiative, PMJDY stands as a global benchmark for inclusive governance. Over its 11 years of implementation, it has not only facilitated universal access to banking but has also deepened financial penetration across socio-economic and geographic divides. As PMJDY enters its 12th year, the emphasis must evolve from mere account creation towards account activation and engagement. Financial literacy, access to credit, micro-insurance, and pension products must be scaled up to fully realise the scheme’s transformative potential. By leveraging digital innovations and deepening outreach in rural and informal sectors, PMJDY can be a powerful driver of inclusive and sustainable economic growth, truly living up to its vision of financial empowerment for all.