The program’s success is reflected in its impressive reach. As of August 14, 2024, over 53.14 crore beneficiaries have been banked under PMJDY, with total deposit balances amounting to Rs. 2,31,236 crore.
The Pradhan Mantri Jan Dhan Yojana (PMJDY), India’s flagship financial inclusion program, marked a decade of successful implementation on Wednesday. Launched by Prime Minister Narendra Modi on August 28, 2014, PMJDY has emerged as the world’s largest financial inclusion initiative, integrating millions into the formal banking system and playing a crucial role in the development of marginalized communities.
Union Finance Minister Nirmala Sitharaman highlighted the significance of PMJDY in a statement, emphasizing its impact on financial inclusion. “Universal and affordable access to formal banking services is essential for achieving financial inclusion and empowerment. PMJDY integrates the poor into the economic mainstream and is pivotal in developing marginalized communities,” she said.
The program’s success is reflected in its impressive reach. As of August 14, 2024, over 53.14 crore beneficiaries have been banked under PMJDY, with total deposit balances amounting to Rs. 2,31,236 crore. Since its inception, the number of PMJDY accounts has surged 3.6-fold, growing from 15.67 crore in March 2015 to the current figure. Notably, 55.6 per cent of these accounts are held by women, and around 66.6 per cent are in rural and semi-urban areas.
Sitharaman praised the initiative’s role in advancing financial inclusion, stating, “PMJDY has transformed the banking and financial landscape of the country by providing universal, affordable, and formal financial services, including bank accounts, small savings schemes, insurance, and credit. It has brought 53 crore people into the formal banking system, with deposit balances totaling Rs. 2.3 lakh crore.”
A significant feature of PMJDY is the issuance of RuPay debit cards. To date, 36.14 crore RuPay cards have been distributed to account holders, offering a ₹2 lakh accident insurance cover. The initiative has also removed account opening fees and minimum balance requirements, further enhancing accessibility.
Effective governance
The linking of Jan Dhan accounts with mobile numbers and Aadhaar has been a cornerstone of PMJDY, creating a consent-based pipeline that enables swift, transparent, and seamless transfer of government welfare schemes. Sitharaman highlighted this integration as crucial for promoting digital payments and efficient distribution of benefits.
Union Minister of State for Finance Pankaj Chaudhary echoed these sentiments, describing PMJDY as a transformative movement that has empowered many previously unbanked individuals. “PMJDY is not just a scheme but a movement towards financial independence for many. It has instilled a sense of financial security among the unbanked population,” Chaudhary said. He also noted the government’s efforts to ensure that every household has a bank account and that every adult has insurance and pension coverage.
PMJDY’s success extends beyond basic banking services, the government-run PIB said. It said that the initiative has facilitated Direct Benefit Transfers (DBT), eliminating middlemen and ensuring that subsidies and social benefits reach intended beneficiaries directly. This has significantly streamlined government payments and promoted savings accumulation among account holders.
According to the PIB, the program has also contributed to the growth of digital transactions. The introduction of RuPay cards and mobile payment systems like UPI has led to a remarkable increase in digital transactions. The total number of digital transactions surged from 2,338 crore in FY 2018-19 to 16,443 crore in FY 2023-24. Similarly, UPI transactions grew from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
The success of PMJDY is a testament to the effective governance and collaboration between public and private sectors, the Prime Minister said, adding that the program’s mission-mode approach, regulatory support, and the use of digital public infrastructure like Aadhaar have been pivotal in achieving its goals.
