Financial year 2024-25 is special for the Pradhan Mantri Jan Dhan Yojana (PMJDY), the Centre’s flagship financial inclusion scheme.

As the year draws to a close, the scheme crossed two major milestones — 55 crore beneficiaries; and a cumulative balance of ₹2.5 lakh crore in these accounts.

As on March 19, the number of beneficiaries stood at 55.14 crore, and the cumulative account balance was ₹2,60,585 crore. Further, 37.77 crore RuPay cards have been issued to beneficiaries.

The spread of Jan Dhan accounts shows a predominantly rural and semi-urban tilt, as almost 67 per cent (or 36.72 crore) of the account holders are from these regions. Women account holders outnumber male peers at 30.71 crore (56 per cent). The average balance in Jan Dhan accounts is ₹4,726.

The Jan Dhan ‘zero-balance savings account’ — which customers can operate with a zero balance without incurring penalties or fees — also offers access to financial services, a RuPay debit card with accident insurance, and potential for an overdraft facility.

The scheme has come a long way since its launch by Prime Minister Narendra Modi on August 15, 2014. It has become the largest financial inclusion scheme in the world, dispelling the initial concerns of bankers over the viability of a mega scheme with no-frills accounts. It is now seen as an initiative that is bringing in liquidity for banks at a macro level.

“PMJDY serves as a key enabler, empowering millions by providing access to essential financial services and fostering entrepreneurial opportunities. The initiative’s impact continues to expand, creating positive ripple effects across various sectors through a multiplier effect, by encouraging investments in critical areas like education and healthcare, thereby promoting sustainable long-term development,’’ Bibekananda Panda, Senior Economist, State Bank of India, told businessline.

It has brought millions of previously unbanked individuals into the formal banking system

“The programme has facilitated direct benefit transfers, encouraged saving habit, and improved access to credit and other financial products. Moreover, it supports digital payments and fortifies financial infrastructure, significantly contributing to India’s economic progress,’’ Panda said.

The demonetisation exercise in 2016 and the subsequent real-time Unified Payments Interface, or UPI, revolution has been amply aided by the scheme, he added.

Game changer

According to Debashis Acharya, Professor, School of Economics, University of Hyderabad (UoH), the scheme is a game-changer in India’s financial inclusion landscape.

“The constant evolution of the scheme with a focus on providing accounts to every unbanked adult in every unbanked household is reflected partly in the RBI’s financial inclusion index of 64.2 in 2024, compared to 43.4 in 2017. It’s not about the number of PMJDY accounts any more, as an indicator,’’ Acharya said.

Since PMJDY accounts are eligible for direct benefit transfer, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Micro Units Development & Refinance Agency (MUDRA) Bank scheme, a bouquet of financial services are now available to formerly unbanked, underserved segments of society.

“The scheme has also catalysed digital payments. The digital payments index (DPI), published by the RBI with March 2018 as base (DPI score at 100), reached 465.33 in September 2024. With several other stakeholders contributing to the financial inclusion efforts, it’s difficult to assess the effects of PMJDY alone on micro-pension, micro-credit, micro-insurance, and use of PMJDY’s overdraft facility at the moment,’’ the UoH professor said.

The scheme’s provision of debit cards, ‘Chhota Khata’ (limited banking services, including operating account through withdrawal slip alone; ₹1 lakh limit on aggregate credit in a financial year; ₹10,000 limit on aggregate withdrawals and transfers during a month; ₹50,000 limit on account balance), and technology-based banking services to hitherto unbanked and underserved segments of society is deepening financial inclusion.

A notable achievement of the scheme is women’s empowerment, given the large number of women beneficiaries.

Growth in balance

The steady growth in account balance is an indication of the scheme’s efficacy. “The PMJDY programme has ushered in a financial inclusion revolution with almost all households in the country having access to a savings account,’’ Prasanna Tantri, Executive Director, Centre for Analytical Finance, India School of Business, said.

“I hope banks and fintechs use this data to improve credit access for Jan Dhan beneficiaries,’’ he added.

B Yerram Raju, an economist and risk management specialist, pointed out that the initial 1.7 crore beneficiaries were added within a week of the scheme’s launch.

Way forward

The need now is for innovative credit products and a formal mechanism to bring Jan Dhan beneficiaries under the credit score mechanism. Efforts must also be made to revive dormant accounts — 11.3 crore in all, according to government data.

Private banks, too, must heed the call for inclusive growth through financial inclusion, as their contribution remains minimal, as per data. While public sector banks hold nearly half of all Jan Dhan accounts, at 26.94 crore, regional rural banks and private sector banks have 8.82 crore and 0.76 crore accounts, respectively.

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Published on March 30, 2025