Pradhan Mantri Jan Dhan Yojana (PMJDY)
Why in news?
Pradhan Mantri Jan Dhan Yojana (PMJDY) has just completed its 11th anniversary on August 28, 2025, marking a significant milestone as one of the largest financial inclusion programs in the world.
About PMJDY
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program launched by the Government of India on 28 August 2014 to provide universal access to banking facilities, mainly targeting unbanked and underprivileged citizens.
Key Features
- Zero balance savings bank account for every eligible Indian citizen, including minors aged 10 and above (with a guardian).
- Accounts offer access to basic financial services such as savings, deposits, remittances, credit, insurance, and pensions.
- RuPay debit card is provided to account holders, with built-in accidental insurance coverage.
- Overdraft facility of up to ₹5,000 is available for eligible account holders after satisfactory account activity for at least six months.
- Direct Benefit Transfer (DBT): Government welfare payments, subsidies, and pensions can be credited directly into these accounts.
Impact and Achievements
- The scheme set a Guinness World Record for the most bank accounts opened in one week (over 18 million) at its launch.
- As of 2021, over 417 million accounts have been opened, with a substantial increase in financial inclusion for previously unbanked families.
- The campaign is recognized for making banking services more accessible, especially in rural and underserved areas.
Benefits to Account Holders
- No minimum balance required for most accounts, making it accessible to the poor.
- Accidental insurance cover of up to ₹1 lakh linked to the RuPay card, plus additional insurance for early account holders.
- Life insurance cover for qualified beneficiaries opening accounts within a specified period.
- Promotes financial literacy and empowers citizens to participate in the formal banking system.
Objectives
- Widen affordable access to financial services.
- Cover every household with at least one bank account.
- Bring about socioeconomic inclusion and help transfer government benefits directly to citizens more transparently.
This program has played a pivotal role in transforming the banking landscape of India, making financial services more accessible and transparent for millions.
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