Marking 10 years of PM Jan Dhan Yojana – a financial inclusion scheme for the unbanked launched by Prime Minister Narendra Modi -- Finance Minister Nirmala Sitharaman says the scheme has transformed the banking landscape of the country over the last decade.
“By providing universal, affordable, and formal financial services — including bank accounts, small savings schemes, insurance, and credit — to the previously unbanked, PM Jan Dhan Yojana has transformed the banking and financial landscape of the country over the last decade,” Sitharaman says.
“Universal and affordable access to formal banking services is essential for financial inclusion and empowerment. It integrates the poor into the economic mainstream and plays a crucial role in the development of marginalised communities,” Sitharaman adds.
“The success of the initiative is reflected in 53 crore people having been brought into the formal banking system through the opening of Jan Dhan Accounts. These bank accounts have garnered a deposit balance of ₹2.3 lakh crore, and resulted in the issuance of over 36 crore free-of-cost RuPay cards, which also provide for a ₹2 lakh accident insurance cover. Notably, there are no account opening fees or maintenance charges and no requirement to maintain a minimum balance,” Sitharaman adds.
The minister also mentions it is heartening that 67% of the accounts have been opened in rural or semi-urban areas, and 55% of accounts have been opened by women.
“The consent-based pipeline created through the linking of Jan Dhan-Mobile-Adhaar has been one of the most important pillars of the financial inclusion ecosystem. It has enabled swift, seamless and transparent transfer of government welfare schemes to eligible beneficiaries and promoted digital payments,” Sitharaman says.
The scheme provides one basic bank account for every unbanked adult. There is no need to maintain any balance and also no charges are levied on this account. A free RuPay debit card with an in-built accident insurance cover of ₹2 lakh is also provided to promote digital transactions. PMJDY account holders are also eligible for getting an overdraft of up to ₹10,000 to cover exigencies.
Total deposit balances under PMJDY accounts stand at ₹2,31,236 crore. In August 2024, deposits increased about 15 times with an increase in accounts 3.6 times over August 2015, says the finance ministry.
“With the issue of over 36.06 crore RuPay debit cards under PMJDY, installation of 89.67 lakh PoS/mPoS machines and the introduction of mobile-based payment systems like UPI, the total number of digital transactions have gone up from 2,338 crore in FY 18-19 to 16,443 crore in FY 23-24. The total number of UPI financial transactions have increased from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24. Similarly, total number of RuPay card transactions at PoS & e-commerce have increased from 67 crore in FY 2017-18 to 96.78 crore in FY 2023-24,” the ministry says in a release.
