The Pradhan Mantri Jan Dhan Yojana (PMJDY) which completed ten years of its implementation on Wednesday has had a profound impact on every corner of the country.
The scheme launched in 2014, has proven to be the foundation stone in bringing over 80 per cent of Indian women under the ambit of financial inclusion. A significant boost in the bank account ownership of women in a decade, it has gone up from just 26 per cent in 2011 to 78 per cent in 2021.
Out of the total 53.13 crore Jan Dhan accounts over 30 crore are women’s accounts. Over 35 crore of the Jan Dhan account hail from rural or semi-urban areas. PM Jan Dhana Yojana has diminished the rural-urban divide in terms of bank accounts. The percentage of households that have a bank account or a post office account is now almost the same in urban and rural areas, 95 per cent vs 96 per cent respectively.
PM Jan Dhan Yojana has also bridged the gender gap in access to financial services. The gender gap in accessing financial services was 20 per cent in 2011, and it has been reduced to 6 per cent in 2017 which was less than the Global gap of 9 per cent.
PMJDY has other benefits as well in terms of financial inclusion. As of August 2024, over 36.13 crores of RuPay debit cards are issued without any cost to Jan Dhan account holders. The RuPay debit card is free of cost, it gives an insurance benefit of Rs 2 lakh along with an overdraft facility of up to Rs 10,000 to every cardholder.
The government’s focus on Digital Public infrastructure along with the trinity of Aadhar cards, mobile penetration and Jan Dhan accounts, the JAM trinity has propelled the financial inclusion rate from 25 per cent in 2008 to over 80 per cent of adults in the last 6 years.
PMJDY has been the foundation stone for many more people-centric economic initiatives. Whether it is direct benefit transfers, COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, or life and health insurance coverage.
An SBI report in 2021 observed that states with higher PMJDY account balances saw a drop in crime rates and reduced alcohol and tobacco consumption, highlighting the program’s positive social impact.
The Jan Dhan Yojana has garnered global praise for its transformative impact on financial inclusion in India.
In 2023, a G20 report by the World Bank reveals that India has achieved its financial inclusion goals in just 6 years, a feat that would have taken 47 years without its advanced Digital Public Infrastructure.
India has surpassed China in financial inclusion metrics says the SBI report of 2021. Mobile and Internet banking transactions soared to 13,615 per 1,000 adults in 2020, up from 183 in 2015, while the number of bank branches per 100,000 adults rose to 14.7, exceeding those in Germany, China, and South Africa.
India’s account ownership more than doubled from 35 per cent in 2011 to 78 per cent in 2021. All these are because of the government’s various initiatives for financial inclusion.
