PRADHAN MANTRI JAN DHAN YOJANA (PMJDY)

Why in News?

Prime Minister marks 11 transformative years of Pradhan Mantri Jan Dhan Yojana

About PMJDY:

• The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion initiative in India designed to ensure access to essential financial services for all citizens. It enables people to open Basic Savings Bank Deposit Accounts (BSBDA) with simplified procedures, relaxed KYC requirements, and the option of e-KYC.
• The PMJDY takes a holistic approach that goes beyond just opening bank accounts. It seeks to ensure universal access to savings accounts along with affordable credit, remittance services, insurance, and pension facilities.
• Under the scheme, beneficiaries receive RuPay debit cards with accidental insurance cover of ₹2 lakh, overdraft up to ₹10,000 for account holders below 65 years, and access to additional products such as micro-insurance, micro-pension, and micro-credit.
• The scheme also serves as a key platform for Direct Benefit Transfers (DBT) and subsidies, and through its integration with the JAM trinity (Jan Dhan–Aadhaar–Mobile), it ensures transparent and efficient delivery of welfare schemes.
• Six Pillars of PMJDY:
  Universal access to Banking services
  2. Creation of credit guarantee funds
  3. Basic saving bank account with overdraft facility of Rs. 10,000 to eligible adult
  4. Pension scheme for unorganized sector
  5. Micro-insurance
  6. Financial literacy program
  
  
• Achievements:
  – As of August 2025, the Pradhan Mantri Jan Dhan Yojana has opened over 16 crore bank accounts with total deposits exceeding ₹2.67 lakh crore. The number of accounts have grown from 14.72 crore in March 2015, representing a 3.8-fold increase over the decade.
  – The scheme has issued 38.68 crore RuPay debit cards, promoting cashless transactions, offering accident insurance, and reducing reliance on foreign payment systems.|
  – PMJDY built the foundation for India’s UPI ecosystem, creating a user base that helped India emerge as a global leader in digital payments.
  – Women hold 56% of all PMJDY accounts, representing over 31.31 crore female account holders.
  
  
  
• Challenges:
  – The Finance Ministry stated that nearly one-fourth of PM Jan Dhan Yojana (PMJDY) accounts are inoperative, raising concerns about financial inclusion and account usage.
  –  Out of 56.04 crore PMJDY accounts, 04 crore (23%) are inoperative. Uttar Pradesh has the highest share (2.75 crore), followed by Bihar and Madhya Pradesh.
  – Rural areas face issues of unreliable power, internet, and networks affecting digital banking.
  – Financial and technological literacy deficits contribute to limited account usage.
  – Multiple Accounts: The lure of getting a large insurance cover, accidental death benefit cover and overdraft facility prompt people to open multiple accounts in different banks using different identification documents like Aadhaar card, PAN card etc.
  – Economic Burden on Banks: Too many accounts with persistent low balance creates  financial problems for banks in managing them.
  
  
• Way Forward:
  – Centralised Verification System → Biometric/digital checks to prevent duplicate accounts; incentivise single account use.
  – NSFI 2025–30 → Prioritise PMJDY for deeper penetration of social security schemes and awareness.
  – Insurance for All → Expand micro-insurance coverage beyond focus on accounts and balances.
  – Micro-Credit & Investments → Improve access to small credit and products like flexi-recurring deposits.
  – Overdraft Accounts → Increase penetration of OD facilities to drive growth and financial inclusion.
  – New Focus Areas → Cover remaining adults and continue onboarding new ones entering adulthood.

UPSC CSE Prelims 2015:
‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for (2015)

(a) providing housing loan to poor people at cheaper interest rates

(b) promoting women’s Self-Help Groups in backward areas

(c) promoting financial inclusion in the country

(d) providing financial help to the marginalised communities

Ans: (c)