Introduction: The Pradhan Mantri Jan Dhan Yojana (PMJDY), a cornerstone of financial inclusion in India, celebrates its ninth anniversary with remarkable achievements. Since its inception in 2014, PMJDY has revolutionized the accessibility of financial services for marginalized and economically disadvantaged sections. Spearheaded by the Ministry of Finance, this initiative has not only connected millions to the formal banking system but has also played a pivotal role in various government welfare programs and digital transformations.
Detailed Subheading-wise Analysis:
1. PMJDY’s Genesis and Significance: The PMJDY was launched on August 28, 2014, following its announcement by Prime Minister Narendra Modi on Independence Day. With a vision to liberate the economically vulnerable from financial hardships, PMJDY aimed to offer comprehensive financial services to all. It marked a significant step towards breaking the cycle of poverty and creating a more inclusive financial ecosystem.
2. Financial Inclusion and its Impact: The Ministry of Finance, through PMJDY, aimed to ensure access to essential financial services such as banking, savings, remittance, credit, insurance, and pension for every individual. The inclusion of technology, relaxed KYC norms, and affordable services made it a formidable vehicle of empowerment for the underbanked.
3. Success Metrics and Achievements: The impact of PMJDY is evident from the statistics it has amassed over nine years. More than 50 crore beneficiaries have been banked since its inception. The total deposit balances under PMJDY accounts have exceeded Rs. 2,03,505 crore. The number of PMJDY accounts has grown substantially, with a 3.4-fold increase from 14.72 crore in March 2015 to 50.09 crore as of August 16, 2023.
4. Women Empowerment and Rural Penetration: Approximately 56% of Jan-Dhan account holders are women, highlighting the program’s positive impact on women empowerment. Additionally, about 67% of Jan Dhan accounts are in rural and semi-urban areas, showcasing PMJDY’s deep penetration into underserved regions.
5. Key Features and Transformations: The scheme’s foundation rested on universal access to banking services, overdraft facilities, financial literacy programs, credit guarantee funds, and insurance coverage. The emphasis on RuPay cards and simplified KYC procedures facilitated smoother financial interactions.
6. Direct Benefit Transfer (DBT) and Beyond: PMJDY has played a crucial role in enabling efficient Direct Benefit Transfers. Whether it’s financial assistance during crises or welfare programs like PM-KISAN, PMJDY accounts have served as the bedrock for these initiatives, ensuring that funds reach the intended beneficiaries promptly.
7. Digital Transformation and Growth: PMJDY’s contributions to the digital ecosystem are substantial. The issuance of RuPay debit cards, installation of PoS machines, and the surge in UPI transactions have propelled India’s digital payments landscape. The program’s role in encouraging digital payments and financial awareness is commendable.
8. Vision for the Future: As PMJDY embarks on its journey ahead, the focus remains on extending micro-insurance schemes to account holders, promoting digital payments, enhancing access to micro-credit and investments, and fortifying the program’s role as a catalyst for financial growth.
Conclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has scripted an inspiring tale of transforming financial inclusion in India. Over its nine-year journey, it has touched the lives of millions, uplifting the underprivileged and promoting equitable growth. PMJDY’s success story resonates not only as a beacon of financial empowerment but also as a testament to the nation’s commitment to uplift every citizen, regardless of their economic background. As the program looks ahead, its legacy of empowerment and progress continues to shine brightly.
Ministry of Finance
Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completes nine years of successful implementation
PMJDY-led interventions and digital transformation have revolutionised financial inclusion in India: Union Finance Minister Smt. Nirmala Sitharaman
PMJDY accounts are fulcrum of people-centric initiatives like DBT and contribute towards inclusive growth of all sections of the society, especially the underprivileged: Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad
More than 50 crore beneficiaries banked under PMJDY since inception
Total deposit balances under PMJDY Accounts stand at Rs. 2,03,505 crore
PMJDY accounts grow 3.4 -fold from 14.72 crore in March 2015 to 50.09 crore as on 16-08-2023
Around 56% Jan-Dhan account holders are women and around 67% Jan Dhan accounts in rural and semi-urban areas
33.98 crore RuPay cards issued to PMJDY accountholders
The Pradhan Mantri Jan Dhan Yojana (PMJDY) – the National Mission for Financial Inclusion – completes nine years of successful implementation today.
The PMJDY was announced by Prime Minister Shri Narendra Modi in his Independence Day address on 15th August 2014. While launching the programme on 28th August 2014, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle.
a. PMJDY Accounts
As on 9th August 23 number of total PMJDY Accounts: 50.09 crore; 55.6% (27.82 crore) Jan-Dhan account holders are women and 66.7% (33.45 crore) Jan Dhan accounts are in rural and semi-urban areas
[Deposits under PMJDY accounts –
Total deposit balances under PMJDY Accounts stand at Rs. 2,03,505 crore
Average Deposit per PMJDY account –
Average deposit per account is Rs. 4,063 as on 16.08.2023
e. RuPay Card issued to PMJDY account holders
Total RuPay cards issued to PMJDY accountholders: 33.98 crore
7. Jan Dhan Darshak App (JDD App)
JDD App is a mobile application which provides a citizen centric platform for locating banking touch points such as bank branches, ATMs, Banking Correspondents (BCs), Indian Post Payment Banks etc. in the country. Over 13 lakh banking touchpoints have been mapped on the JDD App. The facilities under Jan Dhan Darshak App could be availed as per the need and convenience of common people. The web version of this application could be accessed at the link http://findmybank.gov.in.
This app is also being used for identification of villages which are yet to covered by banking outlets within 5 km radius. These identified villages are allocated to various banks by concerned SLBCs for opening of banking outlets. The efforts have resulted in a significant decrease in number of uncovered villages.
A total of 6.01 lakh villages are mapped on the JDD app as of July 2023. Out of these, 5,99,468 (99.7%) of total mapped villages are covered with banking outlets (Bank branch, Banking corner or Indian Post Payment Banks (IPPB) within 5 km radius).
8. Towards ensuring smooth DBT transactions
As informed by banks, about 6.26 crore PMJDY accountholders receive direct benefit transfer (DBT) from the Government under various schemes. To ensure that the eligible beneficiaries receive their DBT in time, the Department takes active role in identification of avoidable reasons for DBT failures in consultation with DBT Mission, NPCI, banks and various other Ministries.
9. Digital transactions: With the issue of over 33.98 crore RuPay debit cards under PMJDY, installation of 79.61 lakh PoS/mPoS machines and the introduction of mobile based payment systems like UPI, the total number of digital transactions have gone up from 1,471 crore in FY 17-18 to 11,394 crore in FY 22-23. The total number of UPI financial transactions have increased from 92 crore in FY 2017-18 to 8,371 crore in FY 2022-23. Similarly, total number of RuPay card transactions at PoS & e-commerce have increased from 67 crore in FY 2017-18 to 126 crore in FY 2022-23.
The road ahead
i. Endeavour to ensure coverage of PMJDY account holders under micro insurance schemes. Eligible PMJDY accountholders will be sought to be covered under PMJJBY and PMSBY. Banks have already been communicated about the same.
ii. Promotion of digital payments including RuPay debit card usage amongst PMJDY accountholders through creation of acceptance infrastructure across India
iii. Improving access of PMJDY account holders to Micro-credit and micro investment such as flexi-recurring deposit etc.