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10 years of Jan Dhan Yojana: A milestone in financial inclusion

Prime Minister Narendra Modi on Wednesday lauded the BJP government’s flagship initiative, Jan Dhan Yojana, on its 10th anniversary. He highlighted the scheme’s role in advancing financial inclusion, emphasizing how it has empowered women, youth, and marginalized communities while improving their financial status.

In a post on X, PM Modi said, “Today, we mark a momentous occasion– 10 Years of JanDhan. Congratulations to all the beneficiaries and compliments to all those who worked to make this scheme a success. Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and marginalized communities.”

Union Finance Minister Nirmala Sitharaman also praised the scheme, saying that PM Jan Dhan Yojana has transformed the country’s banking and financial landscape over the last decade. Sitharaman said that the initiative has provided universal, affordable, and formal financial services – including bank accounts, small savings schemes, insurance, and credit – to individuals who previously lacked access to banking.

She pointed out that 67 percent of the accounts under the scheme have been opened in rural or semi-urban areas, with 55 percent of accounts 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 said.

Scheme Overview

Launched by Prime Minister Modi on August 15, 2014, during his Independence Day address, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission aimed at providing access to a range of financial services, including remittance, credit, insurance, pension, and savings and deposit accounts, in an affordable manner.

To address technological challenges, PMJDY utilizes mobile transactions and telecom centers as Cash Out Points. The initiative seeks to ensure universal banking access and improve financial integration across the country, with a focus on reaching disadvantaged and low-income groups.

Key Benefits of Jan Dhan Yojana

The Ministry of Finance said in a statement that the PMJDY-led initiatives have produced both transformational as well as directional changes. It has strengthened banking and financial institution ecosystems, delivering financial services to the most deprived sections of society.

According to the ministry, PMJDY has enabled savings and expanded credit access to those without a formal financial history. Account holders can now show saving patterns, making them eligible for loans from banks and financial institution.

The Jan Dhan Yojana provides numerous advantages to its account holders. A basic savings bank deposit (BSBD) account can be opened at any bank branch or Business Correspondent (Bank Mitra) outlet without the need for a minimum balance. Deposits in these accounts earn interest, and account holders receive a RuPay debit card.

Additionally, the scheme offers an accident insurance cover of ₹1 lakh, which was increased to ₹2 lakh for new accounts opened after August 28, 2018. Eligible account holders can also access an overdraft facility of up to ₹10,000.

Achievements

* The Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully opened a total of 53.13 crore accounts. Among these, 55.6% (29.56 crore) are held by women, and 66.6% (35.37 crore) are in rural and semi-urban areas.

* The total deposit balance across all PMJDY accounts has reached 2.31 lakh crore. Since the scheme’s inception, deposits have increased nearly 15 times, and the number of accounts has grown 3.6 times as of August 14, 2024.

* The average deposit per account is 4,352 rupees, reflecting a fourfold increase compared to August 15.

* Over 36.06 crore RuPay debit cards have been issued under the scheme.

* Significant progress has been made in infrastructure, with the installation of 89.67 lakh point-of-sale (PoS/mPoS) machines.

* The introduction of mobile-based payment systems such as UPI has led to a substantial increase in digital transactions. The total number of digital transactions surged from 2,338 crore in the financial year 2018-19 to 16,443 crore in the financial year 2023-24.

* UPI financial transactions have experienced remarkable growth, rising from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.

* Transactions using RuPay cards at point-of-sale and e-commerce platforms have also seen significant growth, increasing from 67 crore in FY 2017-18 to 96.78 crore in FY 2023-24.

* The PMJDY has significantly advanced financial inclusion in India, raising coverage from 25% in 2008 to over 80% today.

International Acclaim

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has earned global recognition for its remarkable achievements in financial inclusion. In 2014, the scheme was officially honoured by Guinness World Records for setting a record in the category of “Most Bank Accounts Opened in One Week” as part of a Financial Inclusion Campaign. This outstanding accomplishment, with 1.91 crore accounts opened, was achieved by the Department of Financial Services, Government of India.

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