Introduction

Union Minister Anurag Thakur during the inauguration 2024 Annual Government and Institutional Affairs Meeting of Federal Bank, a private sector bank in IndiaFriday the 16th^th as of February 2024, had highlighted the contribution of Pradhan Mantri Jan Dhan Yojana (PMJDY) to financial inclusion.

Prime Minister Narendra Modi announced Pradhan Mantri Jan Dhan Yojana on the 15th^th August 2014, during his independence speech which launched him on 28^th August 2014. The scheme was then rejected as a non-starter.

Today, the government can proudly boast that it opened 45 million bank accounts under the scheme with corpus under Jan Dhan accounts reaching a mammoth 2.1 lakh crore rupees, which is part of the banking ecosystem, said the minister.

Recalling that, before 2014, The previous government was known for policy paralysis, the minister emphasized the policy change to reform, perform, transform since 2014.

Launch of PMJDY

In 2014, the Indian government launched PMJDY to provide financial services to all citizens irrespective of their socio-economic status. Since then, the scheme has made significant progress in increasing financial literacy and reducing poverty.

PMJDY is a National Mission for Financial Inclusion with an integrated approach to achieve comprehensive financial inclusion and provide banking services to all households in the country. The scheme provides access to a number of financial services such as:

1. Availability of a basic savings bank account;
2. Access to credit based on needs;
3. Remittance facility;
4. insurance and;
5. Pension.

Objectives of PMJDY

1. Universal access:

To ensure that every Indian has access to basic financial services such as a savings account, debit card and insurance, thereby helping to reduce financial exclusion and promote inclusive growth.

2. Financial stability:

To promote financial literacy by providing information on the importance of saving, insurance and responsible borrowing, making people aware of the benefits of financial planning and inculcating the habit of saving among households.

3. Direct transfer of benefits: PMJDY is also geared towards providing banking facilities to the disadvantaged and marginalized sections of the society who are getting benefits from various government schemes. Through the direct transfer of benefits, beneficiaries will be able to receive financial assistance from the government without intermediaries, reducing corruption and increasing transparency.

Benefits of PMJDY

1. No minimum balance requirements:

PMJDY accounts are zero balance accounts and do not require maintaining a minimum balance, facilitating access to banking services for low income groups and rural households.

2. Debit card and overdraft facility:

PMJDY account holders are provided with a RuPay Debit Card for easy transactions. They can also avail an overdraft facility of up to Rs 10,000 depending on the eligibility criteria and account performance.

3. Accident insurance coverage:

PMJDY account holders are eligible for life insurance and accident insurance of Rs. 30,000 and Rs. 2 lacs respectively provided they access their account at least once every 45 days.

Contribution of PMJDY to Financial Inclusion

PMJDY has brought millions into the formal banking system, giving them access to credit, insurance and government benefits.

The scheme has played a significant role in improving financial inclusion in India by creating millions of new bank accounts, especially in rural areas, enabling account holders to transact digitally. In addition, PMJDY allowed the government to transfer subsidies and benefits directly to the bank accounts of the beneficiaries. This reduced leakages and delays and contributed to the overall efficiency of government programs.

Beneficiaries including female beneficiaries on 14 February 2024

Beneficiaries under PMJDY on 14.02.2024

1. Under bank type, public sector banks: There were 40.41 million total beneficiaries;
2. Under bank type, Regional Rural Banks: There were 9.66 million beneficiaries in total;
3. Under bank type, private sector banks: There were 1.54 million beneficiaries in total;
4. Under the bank type, Rural Cooperative Banks: There were 0.19 Crore beneficiaries in total.

Not. of the total beneficiaries under PMJDY on 14.02.2024 were 51.80 crores.

Rural-urban female beneficiaries under PMJDY on 14.02.2024

Under bank type, public sector banks: There were 22.23 million rural-urban female beneficiaries;

Under bank type, Regional Rural Banks: There were 5.59 million rural-urban female beneficiaries;

Under bank type, THE Private sector banks: There were 0.82 million rural-urban female beneficiaries;

Under bank type, THE Rural Cooperative Banks: There were 0.10 million rural-urban female beneficiaries.

Not. Rural-urban female beneficiaries within the PMJDY on 14.02.2024 were totally 28.75 Crore, constituting 55.50%, underlining the success of the government’s decision regarding women’s financial inclusion.

Epilogue

PMJDY, a government scheme aims to ensure easy access to banking services for all citizens. The Government of India has conducted mass awareness campaigns to educate people about the benefits of PMJDY, encouraging them to participate in the program. The campaigns have been successful in making people aware of the programme.

Under the scheme, the number of bank accounts increased nearly four-fold from 14.72 million in March 2015 to 53.13 million as on 14 August 2024, while total deposits under PMJDY increased from 15,670 million in March 2015 to over 2.31 lakh crore by August 2024.

Recognizing the need for women’s financial inclusion, the government has also launched initiatives such as Mahila E-Haat and Mudra Yojana to give women access to credit and enable them to become financially independent.

PMJDY launched by Modi government which completed a decade of successful implementation on 28^th August 2024 proved to be a game changer for financial inclusion in India, enabling millions of households to access formal financial services, bringing them into the mainstream of the economy.

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