Pradhan Mantri Jan Dhan Yojana

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Pradhan Mantri Jan Dhan Yojana (PMJDY)
PM Modi launches the Pradhan Mantri Jan Dhan Yojana.jpg
PM Modi launches the " Pradhan Mantri Jan Dhan Yojana"
Prime Minister(s)Narendra Modi
Key peopleArun Jaitley
Launched28 August 2014; 5 years ago (2014-08-28)

Pradhan Mantri Jan Dhan Yojana (PMJDY), is financial inclusion program of Government of India which is applicable to 10 to 65 years age group, that aims to expand and make affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.[1] He had announced this scheme on his first Independence Day speech on 15 August 2014.

Run by Department of Financial Services, Ministry of Finance, under this scheme 15 million bank accounts were opened on inauguration day.[2][3] The Guinness Book of World Records recognized this achievement, stating: "The most bank accounts opened in one week as a part of the financial inclusion campaign is 18,096,130 and was achieved by the Government of India from August 23 to 29, 2014".[4] By 27 June 2018, over 318 million bank accounts were opened and over ₹792 billion (US$12 billion) were deposited under the scheme.[5]


The scheme was launched by PM Narendra Modi on 15 August 2014. Slogan of the Scheme is "Mera Khatha, Bhagya Vidhatha (meaning "My account brings me good fortune")[6] The scheme was launched after the failure of previous such schemes including Swabhimaan.[7] Swabhimaan was a campaign of the Government of India which aims to bring banking services to large rural areas. It was launched by Sonia Gandhi, the Chairperson of the United Progressive Alliance party in the presence of Shri Pranab Mukherjee, the Union Finance Minister and Namo Narain Meena, the Union Minister of State for Finance on February 10, 2011.[8]


Opening of no-frills accounts: The Bank accounts opened under PMJDY do not require minimum balance. An overdraft facility up to 10,000 (US$140) is also available after six months. Interest is on deposit. Free RuPay debit card for account.

Relaxation on know-your-customer (KYC) norms: Persons who do not have valid identification document can also open bank account. This type of account called "Small Account" , can be regularized within one year.

Engaging business correspondents (BCs): Account opening and bank transactions are through business correspondent. Business correspondents are usually appointed in remote areas where banks do not have physical branches.

Use of technology: Bio-metric based account opening and transaction are available through business correspondent. This eases banking operations for illiterate people.

Direct Benefit Transfer: The government subsidies are directly transferred to the beneficiary's account. This reduces delay and leakage to get service.

Insurance: Accidental insurance cover of 200,000 (US$2,900) provides life cover of 30,000 (US$430) payable on death of the beneficiary.


Pradhan Mantri Jan-Dhan Yojana statistics as on 3 July 2019 (All figures in millions)[5]

Bank Type Number of Accounts Balance in Accounts Number of RuPay Cards
Rural Urban Total Female
Public Sector Banks 155 131 287 151 (53%) 793 billion (US$11 billion) 235
Regional Rural Banks 52 10 62 34 (56%) 181 billion (US$2.6 billion) 38
Private Banks 6.9 5.6 13 6.7 (54%) 30 billion (US$430 million) 12
Total 214 147 361 192 (53%) 1,005 billion (US$15 billion) 285


Due to the preparations done in the run-up, as mentioned above, on the inauguration day, 15 million bank accounts were opened.[2] The Prime Minister said on this occasion- "Let us celebrate today as the day of financial freedom." By September 2014, 30.2 million accounts were opened Bank]] with 2.024 million accounts, Canara Bank 1.621 million accounts, Central Bank of India 1.598 million accounts and Bank of Baroda with 1.422 million accounts.[9] On 20 January 2015, the scheme entered into Guinness book of world records setting new record for 'The most bank accounts opened in one week'.[10]

The balance in Jan Dhan accounts rose by more than 270 billion (US$3.9 billion) between 9 November 2016 and 23 November 2016.[11] 1.9 million householders have availed the overdraft facility of 2.56 billion (US$37 million) by May 2016.[12] Uttar Pradesh and West Bengal have got 29% of the total deposits under the scheme,[13] whereas Kerala and Goa became the first states in the country to provide one basic bank account to every household.[14]

The total number of account holders stood at 294.8 million, including 176.1 million account holders from rural and semi-urban branches. A total of 227 million RuPay cards have been issued by National Payments Corporation of India (NPCI) till August 2017. The amount of deposits rose to 656.97 billion (US$9.5 billion) by August 2017.[6]

According to an analysis of various studies, "Beyond enabling account ownership and the use of financial services, the PMJDY also facilitated financial inclusion for a variety of demographics. While the programme has made significant headway towards genuine financial inclusion, it is clear that improving policy communication, widening and deepening progress in low-income states, and ironing out the kinks in the bank-agent model will be crucial if these hard-fought gains are to prove sustainable."[15] At least 300 million new families have got Jan Dhan accounts in which almost 650 billion (US$9.4 billion) have been deposited, Prime Minister Narendra Modi said on 28 August 2017, on the eve of third anniversary of the scheme aimed at financial inclusion.


The scheme has been criticized by opposition as an effort to please voters that has created unnecessary work-burden on the public-sector banks. It has been claimed that the poor deserve food more than bank accounts and financial security. Further, these accounts have not yet added considerable profits to PSU banks.[16][17][18][19] According to the experts, offers like zero balance, free insurance and overdraft facility would result in duplication. Many individuals who already have bank accounts may have had accounts created for themselves, lured by the insurance covers and overdraft facilities.[20] As per the scheme, a very few people are eligible to get the life insurance worth 30,000 (US$430) with a validity of just five years.[21] The claimed overdraft facility has been completely left upon the banks. As per the government notice, only those people would get the overdraft facility whose transaction record has satisfactory operations in their account for some time.[22]

In addition, while the Indian Government was actively attempting to promote financial inclusion through this scheme, the Reserve Bank of India, permitted banks to charge customers for conducting ATM transactions beyond a certain number of times per month. This effectively prevented people from easily accessing their own savings and discouraged them from using formal banking channels.[23][24][25]

See also[edit]


  1. ^ Prime Minister to Launch Pradhan Mantri Jan Dhan Yojana Tomorrow, Press Information Bureau, Govt. of India, 27 August 2014
  2. ^ a b ET Bureau (28 August 2014), PM 'Jan Dhan' Yojana launched; aims to open 1.5 crore bank accounts on first day, The Economic Times
  3. ^ "Modi: Banking for all to end "financial untouchability"". Reuters. 28 August 2014.
  4. ^ "Jan Dhan Yojana features in Guinness Book of World Records with 11.5 cr bank accounts". The Indian Express. 21 January 2015. Retrieved 26 May 2018.
  5. ^ a b "Pradhan Mantri Jan-Dhan Yojana",
  6. ^ a b "Jan Dhan scheme: Going strong 3 years on", The Hindu Business Line, 14 August 2017
  7. ^ "Why government's financial inclusion plans are floundering", Business Standard, 23 November 2015
  8. ^ "Sonia Gandhi launches `Swabhimaan campaign` in Delhi". Sify. Retrieved 23 April 2015.
  9. ^ "SBI takes lead in opening bank accounts under Jan Dhan Yojana", The Economic Times, 11 September 2014
  10. ^ "India makes financial world record as millions open new bank accounts", Guinness World Records, 20 January 2015
  11. ^ "Keep the black money deposited in your account: PM to Jan Dhan holders", The Economic Times, 3 December 2016
  12. ^ "Financial inclusion gets a boost with Jan Dhan Yojana", The Economic Times, 11 May 2016
  13. ^ "Why Jan-Dhan Yojana is gaining currency in Uttar Pradesh & West Bengal", Business Standard, 26 May 2016
  14. ^ "Over 26k Jan Dhan bank accounts in Goa have zero balance", The Times of India, 2 June 2016
  15. ^ "The admirable success of the Jan Dhan Yojana". Retrieved 29 August 2017.
  16. ^ Prashanth Perumal. "Jan Dhan Yojana: populism gone berserk". Live Mint.
  17. ^ "Jan Dhan Yojana didn't add to PSU banks' profits: Union". The Times of India.
  18. ^ "'Bharatiya Jhoot Party' taking credit for UPA's schemes, alleges Singhvi", ANI News
  19. ^ "Is there anything new at all in PM Modi's much-touted Jan Dhan Yojana?". Sify.
  20. ^ "Critics attack 'wasteful, ineffective' PM Jan Dhan Yojana".
  21. ^ "PMJDY Guidelines & Features" (PDF). LIC India.
  22. ^ "Facilities Available to Account Holders Under Pradhan Mantri Jan Dhan Yojana (PMJDY) to be Extended to the Existing Account Holders as Well", PIB
  23. ^ "Making ATM transactions expensive: Is RBI contradicting its own stance? - Firstpost". Retrieved 19 February 2018.
  24. ^ Rebello, Joel (15 September 2014). "Rajan defends RBI stand ATM fees, two-factor authentication". Retrieved 19 February 2018.
  25. ^ Shetty, Mayur (4 July 2017). "Vague RBI guidelines see banks cap PM's Jan Dhan Yojana accounts". The Economic Times. Retrieved 19 February 2018.

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