Pradhan Mantri Jan Dhan Yojana hits a milestone in financial inclusion

Launched in August 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) - a National Mission for Financial Inclusion, aimed to provide universal banking services by ensuring every unbanked household has access to a zero-balance bank account. The scheme offers a basic savings bank deposit (BSBD) account, an overdraft (OD) limit of Rs 10,000, and a free RuPay debit card with Personal Accidental death and total disability insurance cover of up to Rs 2,00,000.

PMJDY has witnessed remarkable growth, with net cash accretion in bank accounts reaching an all-time high of Rs 36,153 crore in the fiscal year 2023-24. The average cash deposits per account also surged to Rs 4,524, reflecting increased financial activity.

Despite nearing saturation levels, PMJDY continued its expansion, adding 33 million new accounts in FY24, bringing the cumulative total to 519.5 million. The total balance in these accounts increased to Rs 2,34,997 crore, showcasing widespread adoption across the country.

Account balances and deposits per account showed significant improvement, with an 18% increase in overall balance and a remarkable 22% year-on-year growth in deposits per Jan Dhan account in FY24.

Although there was a slowdown in new account additions due to saturation, PMJDY's progress remained steady. The scheme has played a crucial role in bringing unbanked households into the formal financial fold, fostering economic empowerment and resilience among marginalised communities.

PMJDY stands as a beacon of financial inclusion, driving inclusive growth and prosperity across India. Through its comprehensive offerings and widespread reach, the scheme has empowered millions, underscoring the transformative potential of financial inclusion in building a more equitable society.