Why in the news
As the Pradhan Mantri Jan-Dhan Yojana (PMJDY) completed ten years, a review looked at what it achieved, where it struggles and how it can be strengthened.
About PMJDY
- Launched on 28 August 2014 by the Ministry of Finance as a national mission for affordable access to banking, savings, remittance, credit, insurance and pension.
- Anyone without a bank account can open a Basic Savings Bank Deposit (BSBD) account at a branch or through a Business Correspondent (Bank Mitra).
- Became the base for Direct Benefit Transfers and digital inclusion.
Key features
| Feature | Detail |
|---|
| Minimum balance | Zero |
| Debit card | Free RuPay card for all holders |
| Accident insurance | ₹1 lakh; ₹2 lakh for accounts opened after 2018 |
| Overdraft | ₹10,000 for eligible holders |
| DBT eligibility | Benefits under PMJJBY, PMSBY, APY, MUDRA |
| Cheque book | Optional, at the bank’s discretion |
Ten-year achievements
| Indicator | Then | Later |
|---|
| Accounts | 147 million (Mar 2015) | 520 million (Mar 2024) |
| Deposits | ₹15,600 crore (Mar 2015) | ₹2.32 trillion (Mar 2024), about 30% CAGR |
| Average balance per account | ₹1,065 | ₹4,476 |
| UPI transactions | 920 million (FY2018) | 131.2 billion (FY2024) |
| RuPay PoS/e-commerce transactions | 670 million (FY2018) | 1.26 billion (FY2023) |
- Reach: the Jan Dhan Darshak App maps over 1.3 million banking touch points and 601,000 villages; 99.7% of villages lie within 5 km of an outlet.
- Inclusion: 55.6% (29.56 crore) of accounts belong to women; 66.6% (35.37 crore) are rural or semi-urban.
- DBT: over USD 361 billion transferred under 312 schemes of 53 central ministries.
- COVID relief: PMGKY ex gratia of ₹500 a month for 3 months reached 206.4 million women account holders.
- Credit: 1,17,701 overdraft accounts sanctioned with ₹190 crore at 80.5% utilisation (March 2024).
- Only 8.4% of accounts now hold zero balance.
- The World Bank compared its success to five decades of inclusion in six years, credited to the JAM trinity (Jan Dhan-Aadhaar-Mobile) and Digital Public Infrastructure.
Concerns
- Multiple accounts in different banks cause duplicate data and inefficiency.
- Low or dormant balances burden banks with maintenance costs.
- Risk of misuse for money laundering, noted especially after demonetisation.
- Overdraft is at banks’ discretion, so many eligible holders are refused.
- Business Correspondents allegedly levy unauthorised charges or delay service.
- Overdrafts may turn bad as repayment channels are missing and past waivers shaped expectations.
- A Visa survey found 65% of Indians are not financially literate.
Way forward
- Central biometric and digital verification, with incentives for one account per person.
- Integrate PMJDY into the National Strategy for Financial Inclusion (NSFI) 2025-30, raising social security awareness.
- Prioritise micro-insurance cover for account holders.
- Expand flexi-recurring deposits, micro-loans and investment channels for low-income groups.
- Deepen overdraft use and focus on new adult entrants.
Exam angle
- Launch date: 28 August 2014; nodal ministry: Finance.
- Card issued: RuPay debit card.
- JAM stands for Jan Dhan, Aadhaar, Mobile.