Prime Minister Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana on August 28, 2014. The scheme has turned out to be the largest financial inclusion scheme in the world. The scheme now covers over 531.4 million beneficiaries, with total deposit balances under the same at ₹2,31,236 crore, according to the government on Wednesday.
The Finance Ministry said the number of PMJDY accounts has increased 3.6 times, from 156.7 million in March 2015 to 531.4 million as of August 14. Union Finance Minister Nirmala Sitharaman said that everyone must be given access to formal banking services universally and at affordable costs if the country is aiming for financial inclusion or financial empowerment. This, she said, mainstreams the economically deprived sections and is essential for the development of such denied sections of society.
As Sitharaman pointed out, the PMJDY brought about a sea change in the banking and financial landscape of the country over the past one decade. In the process, the PMJDY mobilized a deposit balance of 2.3 lakh crore, in which over 360 million RuPay cards were issued free of cost, each with ₹2 lakh worth of accident insurance cover. It does not ask for any fees on any account: for account opening or account maintenance. It does not even impose a compulsion to keep a minimum balance. The scheme ensures that each poor unbanked adult has at least one basic bank account with no charges. PMJDY holders may also be allowed an overdraft facility of up to ₹ 10,000 to meet his/her emergency needs.
The Finance Minister in his briefing conveyed happiness over the fact that 67% of the accounts are in rural or semi-urban areas and as high as 55% have been opened by women. It provides an easy and direct transfer mechanism of subsidies, thus reducing the risk of diversion. Accordingly, PMJDY had been an integral part of the JAM trinity for direct benefit transfers. "The PMJDY is indeed a transformative movement that has brought financial freedom to the hitherto unbanked sections and given them greater financial security," said Union Minister of State for Finance, Pankaj Chaudhary.
In last year's address to the nation on Independence Day, 2021, Prime Minister Modi had called for every adult aged 18 and above to have access to banking, insurance, and pension services. Chaudhary said the ongoing effort and at the same time various saturation drives have almost made the target a success, with continuous upticks in both insurance and pension coverage across the country.
PMJDY accounts are not only important for receiving Direct Benefit Transfers but are also key to easy flow-through mechanisms for various financial transactions and savings with the government itself.
Read also | FM Sitharaman Reports 53 Crore Jan Dhan Accounts Established Over a Decade
Read also | India Set to Overtake as World's 3rd Largest Economy: Ashwini Vaishnaw
