Nine Years of Pradhan Mantri Jan Dhan Yojana

Nine Years of Pradhan Mantri Jan Dhan Yojana

News Analysis   /   Nine Years of Pradhan Mantri Jan Dhan Yojana

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Published on: September 05, 2023

Source: PIB

Why in News?

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully completed nine years of implementation.

It was launched on August 28, 2014 and stands as one of the largest financial inclusion initiatives globally, led by the Ministry of Finance to provide affordable financial services to vulnerable and economically disadvantaged sections.

What is Pradhan Mantri Jan Dhan Yojana?


PMJDY creates a platform for universal access to banking facilities with at least one basic banking account for every household, financial literacy, and access to credit, insurance, and pension facilities.

Features of PMJDY:

It aims to expand banking services through branches and Banking Correspondents (BCs).

It covers both urban and rural areas and those who open an account would get indigenous Debit Card (RuPay card).

There is no requirement to maintain any minimum balance in PMJDY accounts.

Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.

It provides an overdraft facility of Rs. 10,000 to every eligible adult.

PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY).

Note: An overdraft allows individuals to withdraw money from their bank account even if they have an insufficient balance. Overdrafts are primarily intended to be used for covering immediate, short-term expenses.


Promoting Equitable Growth: PMJDY fosters Financial Inclusion (FI), leading to inclusive growth through the provision of affordable financial services to low-income and disadvantaged segments of the population.

The Jan Dhan–Aadhaar–Mobile (JAM) architecture has enabled seamless transfer of government benefits to common citizens' accounts.

Bringing Savings to Formal Systems: PMJDY has brought the savings of the poor into the formal financial system, freeing them from usurious money lenders.

Empowering Women: Approximately 55.5% of Jan Dhan accounts belong to women, promoting financial empowerment.

Overdraft is available in only one account per household, preferably lady of the household.


More than 50 crore people have been included in the formal banking system through Jan Dhan accounts.

Approximately 67% of these accounts have been opened in rural and semi-urban areas.

Around 34 crore RuPay cards have been issued to these accounts, providing ₹2 lakh accident insurance cover.

Guinness World Records has acknowledged the PMJDY's success, certifying that the "Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India."

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