Pradhan Mantri Jan Dhan Yojana Celebrates a Decade of Transformative Financial Inclusion

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched by Prime Minister Narendra Modi on 28th August 2014, marks a significant milestone today as it completes ten years of successful implementation. As the largest financial inclusion initiative globally, PMJDY has played a pivotal role in integrating marginalized and economically disadvantaged sections into the formal banking system.

Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, lauded the initiative’s success, stating, “Universal and affordable access to formal banking services is essential for achieving financial inclusion and empowerment. It integrates the poor into the economic mainstream and plays a crucial role in developing marginalized communities.” She highlighted that over the last decade, PMJDY has transformed India’s banking and financial landscape by providing universal, affordable, and formal financial services, including bank accounts, small savings schemes, insurance, and credit, to previously unbanked citizens.

The numbers reflect the initiative’s success, with 53.13 crore Jan Dhan accounts opened as of 14th August 2024. These accounts have accumulated deposits totalling Rs. 2.31 lakh crore, and over 36 crores free-of-cost RuPay cards have been issued, offering a ₹2 lakh accident insurance cover. Notably, 67% of these accounts are in rural or semi-urban areas, and 55% have been opened by women, underscoring the scheme’s reach and impact on traditionally underserved demographics.

The linking of Jan Dhan accounts with mobile and Aadhaar (JAM trinity) has created a robust financial inclusion ecosystem, enabling swift, seamless, and transparent transfer of government welfare schemes to eligible beneficiaries while promoting digital payments.

PMJDY accounts have also been instrumental in facilitating Direct Benefit Transfers (DBTs) and serving as platforms for hassle-free subsidies and payments made by the government to beneficiaries without middlemen. Furthermore, they have provided life and accident insurance to millions of unorganized sector workers through Jan Suraksha schemes.
The journey of PMJDY over the past decade has brought about transformational and directional changes, making banks and financial institutions capable of delivering financial services to the last person in society—the poorest of the poor. The scheme’s success highlights the importance of mission-mode governance, regulatory support, public-private partnerships, and the critical role of digital public infrastructure like Aadhaar for biometric identification.

With its transformative power and digital innovations, PMJDY continues to revolutionize financial inclusion in India, setting a global example of how government initiatives can achieve inclusive growth and financial empowerment for all.