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12 Years of Pradhan Mantri Jan Dhan Yojana

Kumari Sonali

12 Years of Pradhan Mantri Jan Dhan Yojana:

The Pradhan Mantri Jan Dhan Yojana (PM-JDY), the Government of India’s flagship National Mission for Financial Inclusion, has completed 12 years of implementation (2014–2026), marking a systemic shift in expanding formal banking, credit, digital payments, and social security across India.

  • PMJDY has transformed financial inclusion in India, reaching 59.09 crore accounts by August 2026, while expanding access to savings, credit, insurance, pensions and DBT through the JAM framework.
  • The next phase must focus on financial deepening, addressing dormant accounts, digital and biometric exclusion, limited overdraft access and cash-heavy usage through stronger last-mile technology, financial literacy, Bank Mitra networks and behavioural nudges.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in August 2014, PMJDY aims to ensure access to financial services, namely, basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.
  • Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
  • PMJDY operates under the Department of Financial Services within the Ministry of Finance.
  • In 2018, the scheme transformed its strategic target from “every household” to “every unbanked adult”, expanding coverage to individuals within families.
  • Beneficiaries can open a BSBD account without depositing any initial amount and are not penalized for maintaining a zero balance.
  • Deposits kept in PMJDY accounts earn standard savings account interest rates, incentivizing the habit of saving.
  • Enables individuals without formal documents to open a basic bank account. It is valid for 12 months and can be extended by another 12 months upon providing proof of having applied for an Officially Valid Document (OVD).
  • Account holders receive a domestic RuPay debit card, enabling them to withdraw cash from ATMs and make digital payments (PoS/e-commerce).
  • The RuPay card comes with a free accident insurance cover of Rs 2 lakh (for accounts opened after August 28, 2018). Accounts opened before this date have a Rs 1 lakh cover.
  • The National Payments Corporation of India (NPCI) pays the premium.
  • To address emergency financial needs, an overdraft facility of up to Rs 10,000 is available to one account holder per household (preferably a woman) after six months of satisfactory account operation.
  • PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Micro Units Development & Refinance Agency Bank (MUDRA) scheme.