Prime Minister Narendra Modi on Saturday said it is a “significant milestone” that the flagship scheme for financial inclusion – Pradhan Mantri Jan-Dhan Yojana (PMJDY) – has crossed 500 million, with 56% of bank accounts belonging to women and 67% of those opened in rural and semi-urban areas.
PMJDY is one of the three pillars of the JAM trinity (Jan-Dhan, Aadhaar and mobile) that is globally acclaimed as a diversion-proofed subsidy delivery mechanism, which is transferring benefits directly to the bank accounts of the poor. A vision of PM Modi, the scheme provides basic banking facilities to the underprivileged. It was launched on August 28, 2014.
“It is heartening to see that more than half of these accounts belong to our Nari Shakti. With 67% of accounts opened in rural and semi-urban areas, we are also ensuring that the benefits of financial inclusion reach every corner of our nation,” Modi said in a tweet.
The national mission on financial inclusion has completed almost nine years, the Union finance ministry said in a statement. As per the latest reports submitted by banks, the total number of Jan-Dhan accounts has crossed 500 million as on August 9, 2023, it added.
The deposits in these accounts are above Rs.2.03 lakh crore and about 340 million RuPay cards have been issued in these accounts free of cost, the ministry said. “The average balance in PMJDY accounts is Rs.4,076 and more than 550 million PMJDY accounts are receiving DBT [Direct Benefit Transfer] benefits,” it added.
PMJDY scheme has been successful in changing the financial landscape of the country and has brought near saturation in bank accounts for adults. The success of PMJDY lies in the comprehensive nature of the scheme with an attempt to connect the last mile with the formal banking system through technology, collaboration and innovation, it said.
PMJDY offers multiple advantages to account holders such as a bank account without the requirement of minimum balance, free-of-cost RuPay debit cards with inbuilt accident insurance of Rs.2 lakh and an overdraft facility of up to ₹10,000.
