PMJDY world's largest financial inclusion scheme: Nirmala Sitharaman

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched by Prime Minister Narendra Modi on August 28, 2014, has become the world's largest financial inclusion scheme — with more than 53.14 crore beneficiaries and total deposit balances at Rs 2,31,236 crore, the government said on Wednesday.

The Ministry of Finance said in a latest statement that PMJDY accounts grow 3.6-fold from 15.67 crore in March 2015 to 53.14 crore as on August 14.

Union Finance Minister Nirmala Sitharaman said that universal and affordable access to formal banking services is essential for achieving financial inclusion and empowerment, as “it integrates the poor into the economic mainstream and plays a crucial role in the development of marginalised communities.”

“PM Jan Dhan Yojana has transformed the banking and financial landscape of the country over the last decade. These bank accounts have garnered a deposit balance of Rs. 2.3 lakh crore, and resulted in the issuance of over 36 crore free-of-cost RuPay cards, which also provide for a Rs 2 lakh accident insurance cover,” Minister Sitharaman noted.

Notably, there are no account opening fees or maintenance charges and no requirement to maintain a minimum balance.

The PMJDY scheme provides one basic bank account for every unbanked adult. For this account, there is no need to maintain any balance and also no charges are levied on this account.

PMJDY account holders are also eligible for getting an overdraft of up to Rs 10,000 to cover exigencies.

The Finance Minister said that it is heartening to note that 67 per cent of the accounts have been opened in rural or semi-urban areas, and 55 per cent of accounts have been opened by women.

The Jan-Dhan Aadhaar and mobile (JAM) trinity, with PMJDY as one of its pillars, has proven to be a diversion-proof subsidy delivery mechanism.

Union Minister of State for Finance, Pankaj Chaudhary, said that PMJDY is a “transformation movement that has enabled financial independence of many of the unbanked population and has instilled a sense of financial security.”

The Prime Minister, in his 2021 Independence Day speech, announced that every household should have a bank account and every adult should have insurance and pension coverage.

“With the continuous efforts in this direction through various saturation drives carried out across the country, we have achieved near saturation in bank accounts and there has been continuous increase in insurance and pension coverage across the country,” said Chaudhary.

The PMJDY accounts have not only been instrumental in receiving Direct Benefit Transfers but also serve as a platform for hassle-free subsidies/payments made by government to the intended beneficiary without any middlemen, seamless transactions, and savings accumulation.