The Pradhan Mantri Jan Dhan Yojana (PMJDY), India’s flagship financial inclusion initiative celebrated its 10th anniversary on August 28, marking a decade of profound impact on the country’s banking landscape. Prime Minister Narendra Modi lauded the Jan Dhan Yojana and said that it has been paramount in boosting financial inclusion and giving dignity to crores of people.
In a post on X, PM Modi said, “Today, we mark a momentous occasion– 10 Years of JanDhan. Congratulations to all the beneficiaries and compliments to all those who worked to make this scheme a success. Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and marginalized communities.”
Today, we mark a momentous occasion— #10YearsOfJanDhan. Congratulations to all the beneficiaries and compliments to all those who worked to make this scheme a success. Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people,… pic.twitter.com/VgC7wMcZE8
— Narendra Modi (@narendramodi) August 28, 2024
The Pradhan Mantri Jan Dhan Yojana (PMJDY) has achieved a milestone of a total of 53.13 crore PMJDY accounts out of which 55.6 per cent (29.56 crores) Jan-Dhan account holders are women and 66.6 per cent (35.37 crores) Jan Dhan accounts are in rural and semi-urban areas, the Ministry of Finance said in a statement on August 28.
Deposit balances under PMJDY Accounts stand at Rs. 2,31,236 crore. Deposits have increased about 15 times with an increase in accounts 3.6 times, as of August 14 2024.
The average deposit per account, according to the finance ministry stood at Rs. 4,352, as of 14 August 2024. The deposit per account has increased 4 times over August 15.
With the issue of over 36.06 crore RuPay debit cards under PMJDY, the installation of 89.67 lakh point-of-sale (PoS/mPoS) machines and the introduction of mobile-based payment systems like UPI, the total number of digital transactions has gone up from 2,338 crore in financial year (FY) 18-19 to 16,443 crore in FY 23-24.
The total number of UPI financial transactions has increased from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24. Similarly, the total number of RuPay card transactions at PoS & e-commerce has increased from 67 crore in FY 2017-18 to 96.78 crore in FY 2023-24.
A decade of Financial Transformation
Launched in August 2014, PMJDY has become a cornerstone of financial inclusion, reshaping the way millions of Indians access banking services.
The scheme, which aims to provide universal banking services to every unbanked household, has been instrumental in connecting individuals to the formal financial system. It has enabled direct benefit transfers, provided COVID-19 financial assistance, and supported schemes like PM-KISAN and MGNREGA. By ensuring that every adult has access to a bank account, PMJDY has eliminated intermediaries, allowing funds to reach the most vulnerable directly and effectively.
PMJDY has seen impressive success over the past decade:
Total Accounts: Over 531 million PMJDY accounts have been opened, surpassing the entire population of the European Union.
Deposit Balances: Beneficiary accounts hold a total balance of Rs. 2.31 trillion, with the average deposit per account increasing significantly from Rs. 1,279 in 2015 to Rs. 3,761 in 2022.
Beneficiary Demographics: Nearly 57 per cent of the beneficiaries are women, and two-thirds are from rural and semi-urban areas. The scheme has been particularly impactful for women, with over 200 million women account holders receiving timely financial support during the COVID-19 pandemic.
RuPay Debit Cards: As of August 2024, 361.3 million RuPay debit cards have been issued free of cost to Jan Dhan account holders. These cards come with accident insurance and an overdraft facility, further enhancing financial security.
The PMJDY initiative also complements the broader JAM Trinity (Jan Dhan, Aadhaar, and Mobile), which has propelled India’s financial inclusion rate from 25 per cent in 2008 to over 80 per cent in recent years. The introduction of Aadhaar, with over 1.36 billion enrollments, and the proliferation of mobile and internet banking have been critical in this transformation. Mobile banking transactions per 1,000 adults surged from 183 in 2015 to 13,615 in 2019, reflecting the growing adoption of digital financial services.
The increase in the number of banking outlets in villages, rising from 34,174 in March 2010 to 1.2 million in December 2020, further states the success of PMJDY and the government’s commitment to expanding financial access.
PMJDY is the National Mission for Financial Inclusion to ensure access to financial services, namely, Banking, Savings and Deposit Accounts, Remittance, Credit, Insurance, and Pension affordably.
PMJDY provides one basic bank account for every unbanked adult. For this account, there is no need to maintain any balance and also no charges are levied on this account.
PMJDY account holders are also eligible for getting an overdraft of up to Rs. 10,000 to cover exigencies.
Prime Minister Narendra Modi praised the scheme’s achievements, emphasising its role in enhancing financial inclusion and dignity for millions, particularly women, youth, and marginalised communities. As PMJDY completes a decade, it stands as a testament to India’s dedication to building an inclusive financial ecosystem for all its citizens.
