49.49 Crore Jan Dhan Accounts Surpass 2 Lakh Crore: How PMJDY Empowers Financial Inclusion?

In a significant milestone for India's financial inclusion drive, the Pradhan Mantri Jan Dhan Yojana (PMJDY) has surpassed Rs 2 lakh crore in aggregate deposits across 49.49 crore Jan Dhan accounts. Launched in August 2014, the scheme has been successful in providing universal banking services and empowering millions of unbanked households.

The PMJDY was founded on the core principles of "banking the unbanked, securing the unsecured, and funding the unfunded,"  Minister of State for Finance, Bhagwat Karad said. The scheme aims to create a robust banking infrastructure by offering zero-balance bank accounts to every unbanked household in the country.  "PMJDY has been instrumental in providing universal banking services and promoting financial inclusion," said Minister Karad.

Rapid Growth in Deposits Indicates Increasing Participation

As of July 12, 49.49 crore Jan Dhan accounts collectively hold a remarkable Rs 2,00,958 crore in deposits, marking a significant leap forward in the scheme's success. These accounts come with attractive features such as the Basic Savings Bank Deposit (BSBD) account, overdraft limit of Rs 10,000, and free Rupay debit cards with accident insurance cover of Rs 2 lakh. "Deposits in 49.49 crore Jan Dhan accounts have reached an impressive Rs 2,00,958 crore," reveals Minister Karad in a written reply in Lok Sabha.

Extensive Accessibility for Basic Banking Services

A crucial aspect of the PMJDY's success is its commitment to making basic banking services accessible to all. To ensure convenience, banking outlets have been established nationwide, covering over 99.63% of mapped inhabited villages through branches, Business Correspondents (BCs), and India Post Payments Banks (IPPBs). "Our goal is to ensure easy access to basic banking services for every citizen," said Minister Karad.

Digital Revolution in Transactions Reflects Changing Trends

Digital transactions have witnessed substantial growth during 2021-22 and 2022-23, outpacing the volume of traditional cheque-based transactions. The Reserve Bank of India (RBI) has been actively promoting safe digital banking practices and creating awareness about payment products through the Electronic Banking Awareness and Training (e-BAAT) programs. "The growth in digital transactions has been remarkable, surpassing cheque-based transactions," Minister Karad said.

PSBs' Rural Branch Expansion: Bolstering Financial Access

Public Sector Banks (PSBs) have expanded their presence in rural areas to extend financial access to underserved communities. In the fiscal year 2022-23, PSBs successfully opened 316 branches in rural regions out of 927 branches. "PSBs are committed to expanding their reach in rural areas to boost financial inclusion," said Minister Karad.

The RBI's general permission for domestic Scheduled Commercial Banks to establish banking outlets, including branches, anywhere in the country without prior approval has provided a significant impetus for broader penetration of banking services. "RBI's move empowers banks to extend their reach and deliver services nationwide," said Minister Karad.