Pradhan Mantri Jan Dhan Yojana (PMJDY) – A Milestone in Financial Inclusion
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is one of India’s most ambitious financial inclusion initiatives, launched by Prime Minister Narendra Modi on August 28, 2014. The scheme aims to provide affordable access to basic financial services like banking, savings, credit, insurance, and pension to every household, particularly targeting the economically weaker sections of society.
Over the past decade, PMJDY has transformed the way millions of Indians interact with the financial system, bridging the gap between the unbanked population and formal banking institutions.
Objectives of PMJDY
The PMJDY scheme was introduced with clear and impactful goals:
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One bank account per household – ensuring that every family has access to the banking system.
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Financial literacy programs – to educate citizens about the importance of saving and responsible financial planning.
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Direct Benefit Transfer (DBT) – enabling subsidies and welfare payments to be deposited directly into beneficiaries’ accounts.
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Access to credit, insurance, and pension – empowering people to move away from informal moneylenders and towards formal financial channels.
Through these objectives, PMJDY seeks to foster economic empowerment and promote financial stability at the grassroots level.
Key Features of PMJDY
The scheme offers several benefits designed to make banking accessible and convenient:
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Zero Balance Accounts – Citizens can open a basic savings bank deposit account with no minimum balance requirement.
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RuPay Debit Card – Every account holder receives a RuPay debit card for cash withdrawals and digital payments.
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Accident Insurance Cover – ₹1 lakh cover (increased to ₹2 lakh for accounts opened after August 28, 2018).
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Life Insurance Cover – One-time life cover of ₹30,000 for eligible beneficiaries who opened accounts within the initial period.
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Overdraft Facility – After six months of satisfactory account activity, an overdraft of up to ₹10,000 is available.
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Direct Benefit Transfer (DBT) – Seamless transfer of government benefits like LPG subsidies, MGNREGA wages, and pensions.
Achievements and Impact
As of 2025, PMJDY stands as a landmark achievement in financial inclusion:
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50+ crore accounts opened under the scheme.
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Over ₹2 lakh crore deposited collectively.
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A majority of accounts belong to rural and semi-urban residents, with a significant percentage held by women.
The scheme has reduced financial untouchability, increased transparency in government benefit distribution, and helped eliminate middlemen. It proved especially vital during the COVID-19 pandemic, when emergency financial aid was directly transferred to beneficiaries’ accounts.
Challenges Faced
Despite its overwhelming success, PMJDY has encountered certain hurdles:
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Inactive accounts – Many remain dormant due to lack of usage.
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Limited financial awareness – Some account holders are unfamiliar with available banking services.
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Banking access issues – Remote areas still face inadequate infrastructure and connectivity challenges.
To address these, the government and banks have expanded Bank Mitra networks, conducted financial literacy drives, and promoted mobile and digital banking solutions.
Conclusion
The Pradhan Mantri Jan Dhan Yojana is more than just a banking scheme – it is a social revolution in financial inclusion. By bringing millions into the formal banking system, PMJDY has empowered individuals, promoted women’s financial independence, and laid a strong foundation for a cashless and digital economy.
While there is still room for improvement, especially in account usage and rural infrastructure, the scheme remains a shining example of the government’s commitment to inclusive growth and economic justice for all.