By Sameer Ahmad
When Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) on August 28, 2014, few anticipated the scale of transformation it would bring. Eleven years later, India’s flagship financial inclusion programme stands as a global benchmark, with over 56 crore bank accounts opened and deposits crossing ₹2.68 lakh crore.
This is not just a story of numbers, but of how banking reached the remotest hamlets, how women became primary account holders in millions of households, and how the poor began to see dignity and empowerment through something as simple as a bank passbook.
A Landmark in Inclusive Governance
Union Finance Minister Nirmala Sitharaman, in her anniversary message, described PMJDY as “a cornerstone of economic growth and social equity.” She highlighted that 67% of accounts have been opened in rural or semi-urban areas, while 56% belong to women—a clear reflection of the scheme’s focus on bridging both geographical and gender divides.
“Financial inclusion,” she said, “is not just about banking. It is about enabling the poor and marginalized to participate fully in the formal economy and benefit from its opportunities.”
Her colleague, Minister of State for Finance Pankaj Chaudhary, called the scheme a “game-changer in dignity, empowerment and opportunity.” He pointed out how Jan Dhan had become the foundation for India’s Direct Benefit Transfer (DBT) system, ensuring subsidies and welfare payments reach beneficiaries without leakages.
From Mission Mode to Mass Movement
Launched as a “National Mission on Financial Inclusion”, PMJDY started with a simple promise: a bank account for every household. Over time, it evolved into much more—a platform that offered insurance, pensions, overdraft facilities, RuPay cards, and digital transactions.
Every account holder was entitled to a zero-balance account, a free RuPay debit card with ₹2 lakh accident insurance, and the possibility of a ₹10,000 overdraft. For many poor families, this was their first safety net.
What began as a government scheme quickly turned into a nationwide saturation drive. Banks, insurance companies, and state governments coordinated to organize financial literacy camps in the remotest corners of India. In the ongoing 2025 campaign, more than 1.77 lakh camps have already been held across villages and towns, where people can open accounts, enroll in micro-insurance schemes, update KYC details, and even nominate beneficiaries.
Changing the Economics of the Poor
The true test of PMJDY lies not in policy announcements but in lived experiences. In rural Jharkhand, women’s self-help groups now save and transact through Jan Dhan accounts. In the flood-prone districts of Assam, direct benefit transfers have ensured relief money is deposited instantly into beneficiaries’ accounts. For a construction worker in Rajasthan, Jan Dhan has meant eligibility for life and accident insurance schemes that were earlier beyond reach.
Data reflects this behavioral shift. The average deposit per account has risen to ₹4,768 in August 2025, nearly four times higher than a decade ago. This demonstrates not only increased trust in the banking system but also the growth of a saving habit among families who once relied solely on cash or informal credit.
The JAM Trinity Advantage
One of PMJDY’s biggest contributions has been anchoring the JAM trinity—Jan Dhan, Aadhaar, and Mobile. This integration has created a diversion-proof pipeline for government subsidies.
During FY 2024–25 alone, ₹6.9 lakh crore was directly transferred into beneficiaries’ accounts under various welfare schemes, cutting out middlemen and minimizing corruption. For schemes ranging from LPG subsidies to scholarships, Jan Dhan accounts became the direct touchpoint for millions.
This seamless digital infrastructure also boosted digital transactions. With over 38 crore RuPay cards issued and mobile payments like UPI gaining ground, India witnessed a jump from 2,338 crore digital transactions in FY 2018-19 to 22,198 crore in FY 2024-25.
Empowering Women, Strengthening Villages
One of the scheme’s most striking achievements is the gender dimension. With 55.7% of Jan Dhan accounts now held by women, the programme has shifted financial decision-making in households.
Take the example of a rural woman in Bihar who receives government maternity benefits directly into her account. Earlier, such money would often be routed through male family members, but Jan Dhan has given women greater control over financial resources.
Similarly, the scheme’s rural focus has been vital. Of the 56.16 crore accounts, nearly 37.5 crore are in villages and semi-urban regions. This access to formal banking has reduced dependence on moneylenders, enabling villagers to seek credit from institutions under schemes like Mudra loans.
Insurance and Security
PMJDY’s ecosystem expanded into social security schemes—notably, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Millions of unorganized sector workers gained access to life and accident insurance at nominal premiums, while the Atal Pension Yojana (APY) offered old-age security.
Together, these have turned Jan Dhan into more than just an entry point—it is a gateway to a wider web of financial safety nets.
Milestones That Define Success
The numbers tell their own story of scale:
- 56.16 crore accounts opened as of August 2025
- ₹2.68 lakh crore deposits in the system
- ₹4,768 average balance per account
- 38.68 crore RuPay cards issued
- 22,198 crore digital transactions in FY 2024–25
This growth is not just quantitative. The programme has become a catalyst for cultural change—instilling banking habits, building trust in institutions, and spreading financial literacy.
Challenges and the Road Ahead
Yet, the journey has not been without challenges. Dormant accounts remain a concern, despite repeated drives to keep them active. Financial literacy, though improved, still lags in many rural regions. And while deposits have risen, credit uptake among the poorest remains uneven, limiting their ability to leverage accounts for entrepreneurship.
The government is addressing these gaps through targeted saturation campaigns, digital literacy workshops, and doorstep banking services. Banks are also reaching out to inactive account holders to prevent dormancy.
A Global Model for Inclusion
In the span of just over a decade, PMJDY has turned into the world’s largest financial inclusion initiative. International institutions, from the World Bank to the UN, have cited it as a model for integrating the poor into formal finance.
As India enters the twelfth year of Jan Dhan, the scheme stands not merely as a government programme but as a people’s movement. It has blurred the line between welfare and empowerment, showing how governance in “mission mode” can bring millions from the margins to the mainstream.
For the woman farmer in Uttar Pradesh saving for her daughter’s education, the migrant worker in Gujarat sending remittances home, or the pensioner in Tamil Nadu receiving old-age benefits—the impact is deeply personal.
Eleven years on, Jan Dhan is no longer just about opening accounts. It is about opening pathways to dignity, security, and opportunity for millions of Indians who were once invisible to the financial system.
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