Transformative Impact of PM Jan Dhan Yojana on Financial Inclusion in India
Significant Milestone in Financial Inclusion
New Delhi, Aug 13: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly reshaped financial inclusion in India over the past decade, particularly benefiting women, rural communities, and marginalized groups, as highlighted by Tuhin A Sinha, a spokesperson for the BJP.
Sinha elaborated in a media piece on how PMJDY has emerged as a fundamental element of India’s socio-economic evolution, establishing a global standard by enhancing banking access for all citizens.
Initiated in August 2014 by Prime Minister Narendra Modi, the PMJDY scheme was designed to integrate every unbanked household into the formal financial framework.
PM Modi referred to this initiative as a "celebration of the liberation of the impoverished from a relentless cycle of poverty."
According to Sinha, the program has facilitated smooth government transfers, empowered marginalized communities, and laid the groundwork for a digital financial ecosystem in India over the last decade.
He noted, "The initiative’s positive outcomes have surpassed initial expectations, setting a global benchmark for financial inclusion."
Sinha praised PMJDY’s ambitious goal of universal banking access, attributing its success to features like zero-balance accounts, minimal documentation, and complimentary RuPay debit cards with accident insurance, which have enhanced accessibility for the economically disadvantaged.
Moreover, he emphasized the scheme’s targeted approach towards the financial inclusion of women and rural populations, establishing a new benchmark in this regard.
PMJDY has effectively addressed gender and regional disparities, and its integration with Aadhaar and mobile numbers has created a strong framework for financial access. This model has also inspired nations in Africa and South Asia to implement similar initiatives through India’s Global DPI Repository.
“The achievements of PMJDY over the last decade are a clear indication of its transformative influence,” Sinha remarked.
He shared impressive statistics, noting that the number of PMJDY accounts surged from 17.9 crore in August 2015 to 50.14 crore by August 2023. Only 8.2% of these accounts are zero-balance, indicating active usage, with 81.2% operational as of August 2022.
Deposits have also increased by 7.6 times from 2015 to 2022, showcasing heightened financial engagement.
The scheme’s reach into rural areas (67% of accounts) and its focus on women (55.5%) highlight its inclusive nature.
Additionally, propelled by RuPay cards and UPI, digital transactions have soared—from 1,471 crore in FY 2017-18 to 11,394 crore by FY 2022-23.
Transactions using RuPay cards at points of sale and e-commerce rose from 67 crore in FY 2017-18 to 126 crore in FY 2022-23, while UPI transactions skyrocketed from 92 crore to 8,371 crore during the same timeframe.