India's flagship financial inclusion initiative, the Pradhan Mantri Jan Dhan Yojana, marked 12 years of operation today (27 August), having opened 59.09 crore bank accounts with total deposits reaching Rs 3.17 lakh crore.
Originally announced by Prime Minister Narendra Modi from the Red Fort on 15 August 2014 and formally launched on 28 August 2014, the scheme has transformed into the world's largest banking programme aimed at bringing the unbanked into India's formal financial system.
The initiative has achieved significant demographic reach, with women holding approximately 56 per cent of all accounts and 77.8 per cent per cent of accounts situated in rural and semi-urban areas.
Over 40 crore RuPay debit cards have been issued to beneficiaries, each carrying an in-built accident insurance cover of Rs 2 lakh.
The scheme also provides eligible account holders with an overdraft facility of up to Rs 10,000, enabling access to emergency credit without requiring collateral or extensive documentation.
The Jan Dhan-Aadhaar-Mobile trinity, with PMJDY at its core, has enabled Direct Benefit Transfer for 327 government schemes, eliminating intermediaries and reducing leakages.
The JAM framework has reportedly saved over Rs 3.48 lakh crore by removing ineligible beneficiaries from welfare programmes.
During the COVID-19 pandemic, the scheme facilitated direct cash transfers to women account holders, demonstrating its utility in crisis response and social protection.
The programme has expanded banking infrastructure significantly, with 27 states and union territories having connected 100 per cent of households with banking services.
Account holders can access services through bank branches, ATMs, and Business Correspondent outlets, known as Bank Mitras, which operate in remote areas.
The average deposit per account has risen from Rs 1,065 in March 2015 to over Rs 5,350 currently, indicating increased usage and savings habits among beneficiaries.
The scheme operates with zero balance requirements and no account maintenance charges, removing traditional barriers to banking access.
PMJDY accounts serve as gateways to additional financial products including life insurance through Pradhan Mantri Jeevan Jyoti Bima Yojana, accident insurance via Pradhan Mantri Suraksha Bima Yojana, pension schemes under Atal Pension Yojana, and micro-credit through the MUDRA programme.
The initiative earned a Guinness World Record during its launch phase for opening 1.8 crore accounts in a single week.