PMJDY Becomes World's Largest Financial Inclusion Scheme: Nirmala Sitharaman
The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched by Prime Minister Narendra Modi on August 28, 2014, has emerged as the world's largest financial inclusion initiative, boasting over 53.14 crore beneficiaries and total deposit balances amounting to Rs 2,31,236 crore, the government announced.
According to the Ministry of Finance, the number of PMJDY accounts has seen a significant increase, growing 3.6 times from 15.67 crore in March 2015 to 53.14 crore as of August 14, 2024. This expansion underscores the program's effectiveness in integrating millions of previously unbanked individuals into the formal banking system.
Union Finance Minister Nirmala Sitharaman highlighted the importance of universal and affordable access to banking services as a cornerstone for financial inclusion and empowerment. “The PM Jan Dhan Yojana has transformed the banking and financial landscape of the country over the last decade”, she said. “These bank accounts have accumulated a deposit balance of Rs 2.3 lakh crore and have led to the issuance of over 36 crore free-of-cost RuPay cards, which also provide a Rs 2 lakh accident insurance cover”.
One of the notable features of the PMJDY scheme is its accessibility. There are no account opening fees, maintenance charges, or requirements to maintain a minimum balance. This inclusivity has allowed even the most marginalized communities to access formal banking services. PMJDY account holders are also eligible for an overdraft facility of up to Rs 10,000 to cover emergencies, further enhancing the scheme's appeal.
Sitharaman expressed satisfaction with the scheme’s outreach, noting that 67 percent of the accounts have been opened in rural or semi-urban areas, and 55 percent of the account holders are women. This focus on rural areas and women has been instrumental in driving financial inclusion across the country.
The Finance Minister also emphasized the role of the Jan-Dhan Aadhaar Mobile (JAM) trinity, with PMJDY as one of its pillars, in ensuring that subsidies and other government benefits reach the intended beneficiaries directly and without any leakages. The JAM trinity has proven to be an effective mechanism for delivering subsidies and payments seamlessly, without the need for intermediaries.
Union Minister of State for Finance, Pankaj Chaudhary, described PMJDY as a 'transformative movement' that has provided financial independence to many of the previously unbanked population and instilled a sense of financial security among them. He recalled the Prime Minister's 2021 Independence Day speech, where he underscored the goal that every household should have a bank account and every adult should have access to insurance and pension coverage.
Chaudhary added that through continuous efforts and saturation drives across the country, near-universal coverage of bank accounts has been achieved, with a steady increase in insurance and pension coverage. The PMJDY accounts have also played a crucial role in enabling Direct Benefit Transfers (DBTs), ensuring that government subsidies and payments reach the beneficiaries efficiently and without any complications.
