10 years of PM Jan Dhan Yojana has seen Rs 2.31 lakh crore deposits in 53 crore accounts
The Pradhan Mantri Jan Dhan Yojana (PMJDY) marks a significant milestone today, celebrating 10 years. Prime Minister Narendra Modi praised everyone who contributed to the success of the Jan Dhan Yojana, stating that the scheme has been crucial in advancing financial inclusion.
On the social media platform X formerly known as Twitter PM Modi wrote, ¡°Today, we mark a momentous occasion¡ª #10YearsOfJanDhan. Congratulations to all the beneficiaries and compliments to all those who worked to make this scheme a success,¡±?
¡°Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and the marginalized communities,¡± he added.?
The Pradhan Mantri Jan Dhan Yojana (PMJDY) has revolutionised financial inclusion in India over the past decade, touching the lives of millions across the country. Launched by Prime Minister Narendra Modi in 2014, this national mission has played a crucial role in bringing unbanked households into the formal financial system. This article provides an explainer on PM Jan Dhan Yojana, highlighting its benefits and how it has empowered over 53 crore people in ten years.
What is Jan Dhan Yojana?
The PM Jan Dhan Yojana was announced by Prime Minister Narendra Modi on 15th August 2014 from Red Fort and launched by him on 28th August 2014 across the country with a vision to provide every household in India with easy access to financial services, including banking, credit, insurance, and pensions. By offering basic banking accounts to every citizen, this scheme aimed to ensure that no one was left behind in the journey towards financial inclusion. The plan also included financial literacy programs to educate people about the benefits of being part of the formal financial system.
Benefits of PM Jan Dhan Yojana
The benefits of Jan Dhan Yojana extend beyond just opening bank accounts. Account holders receive various financial benefits, including:
- No Minimum Balance Required: There is no need to maintain a minimum balance in PMJDY accounts, making it accessible for everyone.
- Interest on Deposits: Account holders earn interest on the deposits in their PMJDY accounts.
- RuPay Debit Card: Each account holder is provided with a RuPay debit card, which comes with an accident insurance cover of Rs 1 lakh, enhanced to Rs 2 lakh for new accounts opened after August 28, 2018.
- Overdraft Facility: Eligible account holders can avail of an overdraft facility of up to Rs 10,000, providing them with additional financial support during emergencies.
- Direct Benefit Transfer (DBT): PMJDY accounts are used to transfer government subsidies directly to beneficiaries, ensuring that they receive the full benefit of welfare schemes without any leakages.
Revolution of PMJDY Account openings
| Year | No. of account opening |
|---|---|
| March 2015 | 14.72 crore |
| March2016 | 21.43 crore |
| March2017 | 28.17 crore |
| March2018 | 31.44 crore |
| March2019 | 35.27 crore |
| March2020 | 38.33 crore |
| March2021 | 42.20 crore |
| March2022 | 45.06 crore |
| March2023 | 48.65 crore |
| March2024 | 51.13 crore |
| August 14th 2024 | 53.13 crore |
Achievements of PM Jan Dhan Yojana
As of August 14, 2024, the Jan Dhan Yojana has successfully opened over 53.14 crore bank accounts, with total deposits exceeding Rs 2,31,236 crore, according to PIB press release. This significant achievement marks a 3.6-fold increase in accounts and a 15x deposit growth since March 2015. Notably, nearly 30 crore beneficiaries are women, and about 66.6% of the accounts are in rural and semi-urban areas. This reflects the scheme¡¯s wide reach and its focus on empowering marginalised communities. The Guinness Book of World Records also acknowledged the success of the PMJDY initiative. It awarded a certificate for the "Most bank accounts opened in one week as part of the Financial Inclusion Campaign," with a total of 18,096,130 accounts opened by the Department of Financial Services, Government of India, between August 23rd and 29th, 2014.
Empowering the marginalised?
One of the most significant impacts of the PM Jan Dhan Yojana is its role in empowering women, youth, and marginalised communities. By providing them with access to banking services, the scheme has given them the dignity and financial independence they deserve. The availability of credit and insurance has further enabled these individuals to improve their livelihoods and secure their future.
Digital Revolution Under Jan Dhan Yojana
The PM Jan Dhan Yojana has also been a key driver of the digital revolution in India¡¯s financial sector. Over 36.14 crore RuPay debit cards have been issued to PMJDY account holders, facilitating cashless transactions. The introduction of mobile-based payment systems like UPI and the installation of 89.67 lakh PoS/mPoS machines have significantly increased digital transactions, which rose from 2,338 crore in FY 2018-19 to 16,443 crore in FY 2023-24. The number of UPI transactions alone surged from 535 crore to 13,113 crore during the same period.
Access to Credit and Financial Growth
The PM Jan Dhan Yojana has not only enabled savings but has also provided access to credit for those without a formal financial history. This has been transformative, as account holders can now demonstrate their saving patterns, making them eligible for loans from banks and financial institutions. For instance, sanctions under the Mudra loans rose at a compounded annual rate of 9.8% from FY 2019 to FY 2024, empowering individuals to grow their incomes and improve their standard of living.
How to Open a PM Jan Dhan Yojana Account
Opening a PM Jan Dhan Yojana account is simple and requires minimal documentation. If you have an Aadhaar Card, no additional documents are needed. If your address has changed, a self-certification of the current address is sufficient. In case you don¡¯t have an Aadhaar Card, you can use other official documents like a Voter ID, PAN Card, Passport, or NREGA Card. Even if you lack these documents, you can still open a bank account by submitting an identity card issued by a government department or a letter from a gazetted officer.
In the ten years since its inception, the PM Jan Dhan Yojana has transformed the financial landscape of India, bringing millions into the formal banking system. By ensuring universal access to banking facilities, the scheme has laid the foundation for a more inclusive and equitable society. As India continues to embrace digital innovations and expand financial services, the legacy of PMJDY will continue to empower the nation¡¯s poorest, driving economic growth and prosperity for all.
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