Pradhan Mantri Jan Dhan Yojana Milestones

The Pradhan Mantri Jan Dhan Yojana (PMJDY) continues to be a mainstay of India’s financial inclusion efforts as of the financial year 2024-25. Recently, the scheme achieved milestones, reaching 55 crore beneficiaries and accumulating a total balance of ₹2.5 lakh crore in accounts. This scheme, initiated on August 15, 2014, aims to provide accessible banking services to the unbanked population of India.

About the Scheme

PMJDY is a financial inclusion initiative that promotes the establishment of zero-balance savings accounts. These accounts are designed to encourage savings among the underbanked population. The scheme also provides access to various financial services, including insurance and credit.

Beneficiary Demographics

As of March 2025, there are 55.14 crore beneficiaries. Notably, 67 per cent of these account holders are from rural and semi-urban areas. Women constitute portion, with 30.71 crore female account holders, representing 56 per cent of total beneficiaries.

Financial Impact

The average balance in PMJDY accounts is ₹4,726. The scheme has facilitated direct benefit transfers, promoting financial literacy and savings habits. It has also contributed to the liquidity of banks, enhancing the overall financial ecosystem.

Digital Integration

The initiative supports digital payments through the issuance of RuPay debit cards. By March 2025, 37.77 crore RuPay cards have been distributed. This integration has catalysed the growth of digital transactions, impacting the economy.

Broader Economic Implications

PMJDY has been very important in increasing India’s financial inclusion index. The index rose from 43.4 in 2017 to 64.2 in 2024. It has expanded access to various financial products, including micro-insurance and pensions. The programme encourages investments in essential sectors such as education and healthcare.

Challenges and Future Directions

Despite its successes, PMJDY faces challenges. There are 11.3 crore dormant accounts that need revitalisation. Innovative credit products and a formal credit scoring mechanism are necessary to enhance the financial status of beneficiaries. Private banks must also increase their participation in this initiative.

Women’s Empowerment

The scheme has played important role in empowering women financially. The high percentage of female account holders signifies a shift towards greater financial independence for women in India.

Month: Current Affairs - April, 2025

Category: Government Schemes Current Affairs