India's Finance Minister, Nirmala Sitharaman, announced plans to open approximately 3 crore new accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) during the current financial year. Launched by Prime Minister Narendra Modi on August 28, 2014, this flagship financial inclusion initiative has significantly expanded banking access across the country.

As of August 16, 2024, the number of Jan Dhan accounts has surged to 53.13 crore, up from 14.72 crore in March 2015. Total deposits under PMJDY have also seen a substantial rise, growing from ₹15,670 crore in March 2015 to over ₹2.31 lakh crore as of August 2024.

On the eve of the scheme's 10th anniversary, Sitharaman emphasized the government's goal to ensure that all adults, including those newly eligible, have access to banking services. "We believe that most adults in the country are now covered with bank accounts, and our focus is on reaching out to those who are still unbanked," she stated.

The introduction of electronic Know Your Customer (e-KYC) and video KYC processes has streamlined account opening, making it paperless and eliminating the need for in-person visits to banks or banking correspondents. This has led to a significant increase in both the number of accounts and the average balance held, which has risen from ₹1,065 in March 2015 to ₹4,352 as of August 16, 2024.

The PMJDY initiative has become one of the largest financial inclusion programs globally, with 66.6% of the total accounts opened in rural and semi-urban areas. Notably, women account for 55.6% of the 53.13 crore PMJDY accounts, highlighting the program's success in empowering female financial independence.

A key feature of PMJDY is the absence of charges for account opening, maintenance, and minimum balance, along with the provision of a free RuPay debit card that includes accident insurance coverage of ₹2 lakh. Additionally, account holders have access to an overdraft facility of up to ₹10,000.

The scheme's pillars—banking the unbanked, securing the unsecured, and funding the unfunded—have facilitated a collaborative approach involving multiple stakeholders. The integration of the JAM Trinity (Jan Dhan, Aadhaar, Mobile) has further enhanced the Direct Benefit Transfer (DBT) program, expanding its reach to beneficiaries across the country.

The robust financial inclusion architecture established under PMJDY proved invaluable during the COVID-19 pandemic, enabling swift and direct income support to farmers under PM-KISAN and ex-gratia payments to women PMJDY account holders under the PM Garib Kalyan package.

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