Pradhan Mantri Jan-Dhan Yojana (Pmjdy)
Pradhan Mantri Jan-Dhan Yojana (Pmjdy)
Pradhan Mantri Jan-Dhan Yojana (Pmjdy)
81% accounts operative; Total deposit balances at over Rs. 1.73 lakh crore
31.94 Crore RuPay cards issued to PMJDY account holders till August 2022
(Ministry of Finance)
“Economic resources of the country should be utilised for the well-being of the
poor. The change will commence from this point.”
- Prime Minister Narendra Modi
Background
The Government of India has been making concerted efforts to promote financial inclusion as
one of the important national objectives of the country. Some of the major efforts made in the
last five decades include - nationalization of banks, building up of robust branch network of
scheduled commercial banks, co-operatives and regional rural banks, introduction of mandated
priority sector lending targets, lead bank scheme, formation of self-help groups, permitting
BCs/BFs to be appointed by banks to provide door step delivery of banking services, zero
balance BSBD accounts, etc. The fundamental objective of all these initiatives is to reach the
large sections of the hitherto financially excluded Indian population.1
With a view to further enhance the financial inclusion interventions in the country, Government
initiated the National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri
Jan Dhan Yojana (PMJDY) in August, 2014 to provide universal banking services for every
unbanked household, based on the guiding principles of banking the unbanked, securing the
unsecured, funding the unfunded and serving un-served and under-served areas. PMJDY is one
of the biggest financial inclusion initiatives in the world. 2
PMJDY was announced by Prime Minister Narendra Modi in his Independence Day address
on August 15, 2014. While launching the programme on August 28, 2014, the Prime Minister
had described the occasion as a festival to celebrate the liberation of the poor from a vicious
1
https://rbidocs.rbi.org.in/rdocs/Speeches/PDFs/MFI101213FS.pdf
2
https://financialservices.gov.in/financial-inclusion-schemes
cycle. PMJDY aims to ensure access to financial services namely - Banking/ Savings & Deposit
Accounts, Remittance, Credit, Insurance, Pension - in an affordable manner.
Objectives
Initial Features
The scheme was launched based upon the following Six pillars:
• Universal access to banking services – Branch and Banking Correspondent (BC)
• BSBD accounts with overdraft facility of Rs. 10,000 to every household
• Financial Literacy Program – Promoting savings, use of ATMs, getting ready for
credit, availing insurance and pensions, using basic mobile phones for banking
• Creation of Credit Guarantee Fund – To provide banks some guarantee against
defaults
• Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on account
opened between 15 Aug 2014 and 31 January 2015
• Pension scheme for Unorganized sector
1. PMJDY Accounts
• 46.25 crore Jan Dhan accounts opened (as on August 10, 2022).
• 55.59% (25.71 crore) Jan-Dhan account holders are women
• 66.79% (30.89 crore) Jan Dhan accounts are in rural and semi-urban areas
• During first year of the scheme, 17.90 crore PMJDY accounts were opened.
• The number of PMJDY accounts have grown more than three-fold from 14.72 crore
in March 2015 to 46.25 crore in August 2022.
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https://pib.gov.in/PressReleasePage.aspx?PRID=1749749
2. Operative PMJDY Accounts 4
• As per extant RBI guidelines, a PMJDY account is treated as inoperative if there are no
customer induced transactions in the account for over a period of two years
• In August 2022, out of total 46.25 crore PMJDY accounts, 37.57 crore (81.2%) are
operative.
• Continuous increase in the percentage of operative accounts is an indication that more
and more of these accounts are being used by customers on a regular basis
• Total deposit balances under PMJDY Accounts stand at Rs. 1,73,954 crore (as of
August 2022)
• With respect to August 2015 vs August 2022,
a. Deposits have increased about 7.60 times, and
b. Accounts have increased about 2.58 times.
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https://pib.gov.in/PressReleasePage.aspx?PRID=1749749
• Average deposit per account is Rs. 3,761 (as of August 2022)
• Average Deposit per account has increased nearly three times over August 2015
• Increase in average deposit is another indication of increased usage of accounts and
inculcation of saving habit among account holders
8. Digital transactions
With the issue of over 31.94 crore RuPay debit cards under PMJDY, installation of 61.69 lakh
PoS/mPoS machines as on June’22 and the introduction of mobile-based payment systems like
UPI, the total number of digital transactions has gone up from 978 crores in FY 2016-17 to
7,195 crore in FY 2021-22. The total number of UPI financial transactions has increased from
1.79 crores in FY 2016-17 to 4,596 crore in FY 2021-22. Similarly, the total number of RuPay
card transactions at PoS and E-commerce has increased from 28.28 crores in FY 2016-17 to
151.64 crore in FY 2021-22.
References:
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=1854909
• https://pib.gov.in/PressReleasePage.aspx?PRID=1749749
• https://pib.gov.in/Pressreleaseshare.aspx?PRID=1649091
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1781002
• https://static.pib.gov.in/WriteReadData/specificdocs/documents/2021/dec/doc2021121351.pdf
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1776179
• https://pmjdy.gov.in/about
• https://pmjdy.gov.in/files/financial-Literacy/Mission-Document/PDF/English.pdf
Tweets:
• https://twitter.com/DFS_India/status/1515616673633431554/photo/1
• https://twitter.com/DFS_India/status/1515616673633431554
• https://twitter.com/DFS_India
Video links
• https://www.youtube.com/watch?v=Y-okHD6AFMI
AG/HP/RC/PPD/SS
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https://pib.gov.in/PressReleasePage.aspx?PRID=1749749