Nine Years of Pradhan Mantri Jan Dhan Yojana

Source: PIB

Why in News?

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully completed nine years of implementation.

  • It was launched on August 28, 2014 and stands as one of the largest financial inclusion initiatives globally, led by the Ministry of Finance to provide affordable financial services to vulnerable and economically disadvantaged sections.

What is Pradhan Mantri Jan Dhan Yojana?

  • About:
    • PMJDY creates a platform for universal access to banking facilities with at least one basic banking account for every household, financial literacy, and access to credit, insurance, and pension facilities.
  • Features of PMJDY:

Note: An overdraft allows individuals to withdraw money from their bank account even if they have an insufficient balance. Overdrafts are primarily intended to be used for covering immediate, short-term expenses.

  • Significance:
    • Promoting Equitable Growth: PMJDY fosters Financial Inclusion (FI), leading to inclusive growth through the provision of affordable financial services to low-income and disadvantaged segments of the population.
    • Bringing Savings to Formal Systems: PMJDY has brought the savings of the poor into the formal financial system, freeing them from usurious money lenders.
    • Empowering Women: Approximately 55.5% of Jan Dhan accounts belong to women, promoting financial empowerment.
      • Overdraft is available in only one account per household, preferably lady of the household.
  • Achievements:
    • More than 50 crore people have been included in the formal banking system through Jan Dhan accounts.
      • Approximately 67% of these accounts have been opened in rural and semi-urban areas.
      • Around 34 crore RuPay cards have been issued to these accounts, providing ₹2 lakh accident insurance cover.
    • Guinness World Records has acknowledged the PMJDY's success, certifying that the "Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India."

UPSC Civil Services Examination, Previous Year Question (PYQ)


Q. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for (2015)

(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities

Ans: (c)


Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (2016)