Pradhan Mantri Jan Dhan Yojana PMJDY, Objectives, Features 

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is one of the most ambitious financial inclusion initiatives undertaken by the Government of India. Launched on August 28, 2014, Pradhan Mantri Jan Dhan Yojana (PMJDY) is India’s flagship financial inclusion initiative. Announced during Prime Minister Narendra Modi’s Independence Day speech on August 15, 2014, the scheme aims to provide universal access to banking services such as bank accounts, credit, insurance, pensions, and remittances, especially for the unbanked, economically vulnerable population

Pradhan Mantri Jan Dhan Yojana PMJDY Objectives

Despite India’s rapid economic growth, millions remained outside the formal financial system, unable to avail of basic services. Pradhan Mantri Jan Dhan Yojana PMJDY addresses this gap with a threefold mission:

• Universal banking access: Every household should have a bank account.
• Affordable financial services: Credit, insurance, pension, and remittance should be accessible to all.
• Digital and direct benefits transfer (DBT): Direct delivery of subsidies and benefits via bank accounts to eliminate leakages and enable transparency

Pradhan Mantri Jan Dhan Yojana PMJDY Features

1. a) Zero-Balance Accounts

Anyone, adult Indian citizens, and minors above 10 through guardians can open a basic savings bank account under PMJDY with zero minimum balance, promoting inclusivity 

1. b) RuPay Debit Card with Insurance

Every account receives a RuPay debit card, linked to:

• ₹1 lakh accident insurance (initially ₹2 lakh at launch)
• Life insurance of ₹30,000 for new accountholders during the promo period between August 15, 2014, to January 26, 2015 

1. c) Overdraft Facility

After six months of satisfactory usage, account holders, one per household, can avail:

Up to ₹5,000 overdraft facility initially, later enhanced to ₹10,000 

1. d) Remittances, Credit, Insurance & Pensions

PMJDY supports:

• Remittances through linked bank accounts,
• Credit access via schemes like Kisan Credit Card on RuPay,
• Micro-insurance and pension, including unorganized sector schemes like Swavalamban.

1. e) Financial Literacy & Digital Services

The scheme pushes rural and semi-urban financial literacy, mobile banking via USSD, call centers, and toll-free helplines to empower users.

Implementation and Phases

The PMJDY scheme was implemented in two major phases to ensure a structured rollout:

Phase I (15th August 2014 – 14th August 2015)

• Opening of basic bank accounts for every unbanked household.
• Issuance of RuPay debit cards.
• Providing inbuilt accident and life insurance cover.
• Laying the foundation for direct benefit transfers.

Phase II (15th August 2015 – 14th August 2018)

• Focused on expanding the existing services to include micro-insurance and pension schemes.
• Introduction of overdraft facilities and credit guarantee for account holders.
• Strengthening the role of business correspondents to enhance access in far-flung areas.

Progress and Achievements

The impact of PMJDY has been massive and measurable across the country. Some of the major achievements of the scheme include:

• Record-breaking launch: On the very first day, over 1.5 crore accounts were opened across India.
• Guinness World Record: The scheme was recognized for the most bank accounts opened in a week as part of a financial inclusion campaign.
• Massive account penetration: As of 2025, over 55 crore bank accounts have been opened under PMJDY.
• Women empowerment: Approximately 55% of account holders are women, making the scheme instrumental in empowering female heads of households.
• Rural outreach: Over 60% of accounts are in rural and semi-urban areas.
• Deposits surge: The total deposits in PMJDY accounts have crossed ₹2.6 lakh crore, showing growing public trust and usage.
• Reduction in zero-balance accounts: Initially, nearly 75% of accounts were zero-balance, but this has come down to below 15%, indicating active usage.

Socio-Economic Impact

PMJDY is widely regarded as a game-changer in India’s financial ecosystem. Here’s how it has made a real difference:

1. Financial Inclusion at Scale

By opening tens of crores of bank accounts, the scheme has helped in reducing the financial exclusion gap and provided a platform for poor families to enter the formal economy.

2. Transparency and Accountability

The integration of Jan Dhan accounts with Aadhaar and mobile numbers (JAM trinity) has streamlined the delivery of government subsidies, eliminating leakages and ensuring that benefits reach the actual beneficiaries.

3. Women’s Economic Participation

With more than half of the account holders being women, the scheme has promoted gender inclusion and given women a tool to save, access credit, and manage household finances more effectively.

4. Promotion of Digital India

The widespread issuance of RuPay debit cards and encouragement of digital transactions have aligned PMJDY with the broader Digital India mission, reducing cash dependency.

5. Empowerment of Rural India

Through business correspondents and mobile banking, even the remotest villages now have access to financial services, thereby bridging the urban-rural divide in banking infrastructure.

Challenges Faced

Despite its success, the PMJDY initiative has encountered a few hurdles:

• Dormant Accounts: A portion of accounts still remains inactive due to lack of awareness or usage needs.
• Banking Infrastructure Stress: Public sector banks have faced an increased operational burden in managing these accounts and ensuring service delivery.
• Financial Literacy Gap: In many areas, beneficiaries are not fully aware of the benefits available under the scheme.
• Overdraft Risks: Misuse of the overdraft facility or defaults may pose risks to banks if not managed carefully.

Also Read: PM Kisan Samman Nidhi Yojana

Way Forward

To ensure the long-term sustainability and impact of the scheme, several forward-looking steps are being considered:

• Strengthening Financial Literacy: Enhancing awareness campaigns to educate beneficiaries about digital banking, insurance, and pensions.
• Activating Dormant Accounts: Special drives to promote the use of dormant accounts through DBT schemes and incentives.
• Enhanced Digital Access: Further development of mobile-based and app-based banking solutions for PMJDY account holders.
• Integration with other Welfare Programs: Linking PMJDY accounts with more government schemes like crop insurance, old-age pension, and health benefits.