Launched on August 28, 2014, by Prime Minister Narendra Modi, the Pradhan Mantri Jan Dhan Yojana (PMJDY) has emerged as a cornerstone of India’s socio-economic transformation, redefining financial inclusion
within the country and setting a global benchmark. Described by PM Modi as a “festival to celebrate the liberation of the poor from a vicious cycle,” PMJDY aimed to bring every unbanked household into the formal financial system. Over the past decade, it has achieved unprecedented success, revolutionising access to banking, enabling seamless government transfers, empowering marginalised communities, and laying the foundation for India’s digital financial ecosystem. The initiative’s positive impact has extended way beyond initial expectations and provides an apt benchmark for the world in financial inclusion.
A Global Benchmark for Financial Inclusion
PMJDY’s ambition to provide universal banking access was audacious in a country where, in 2014, more than half of households lacked access to formal banking. The scheme’s design -zero-balance accounts, minimal paperwork, and free RuPay debit cards with accident insurance – made it accessible to the poorest. Its global significance lies in its scale and speed. A 2023 World Bank G20 report noted that India achieved its financial inclusion goals in just six years, a process that would have taken 47 years without its advanced digital infrastructure. By 2024, India surpassed China in financial inclusion metrics, with mobile and internet banking transactions soaring from 183 per 1,000 adults in 2015 to 13,615 in 2020.
The scheme’s focus on inclusivity – targeting women, rural populations, and marginalised communities – set a new standard. With 55.6 per cent of accounts held by women (29.56 crore out of 53.13 crore) and 66.6 per cent in rural/semi-urban areas (35.37 crore), PMJDY bridged gender and regional disparities. Its consent-based integration with Aadhaar and mobile numbers created a robust framework for financial access, inspiring countries in Africa and South Asia to adopt similar models through India’s Global DPI Repository.
A Decade of Remarkable Performance (2015–2025)
PMJDY’s performance over the past ten years is a testament to its transformative impact. As of August 2024, the scheme has opened 53.13 crore accounts, with cumulative deposits exceeding Rs 2.3 lakh crore. By July 2025, this figure grew to 55.44 crore accounts with deposits surpassing Rs 2.5 lakh crore, according to RBI data. Additionally, 36 crore RuPay debit cards have been issued, each with a Rs 2 lakh accident insurance cover, at no cost to account holders.
The growth trajectory is staggering. In August 2015, PMJDY had 17.9 crore accounts; by August 2023, this number had tripled to 50.14 crore. Only 8.2 per cent of accounts are zero-balance, indicating active usage, with 81.2 per cent operative as of August 2022.
Deposits have grown 7.6 times between 2015 and 2022, reflecting increased financial engagement. The scheme’s outreach to rural areas (67 per cent of accounts) and women (55.5 per cent) underscores its inclusivity.
Digital transactions have also skyrocketed. From 1,471 crore digital transactions in FY 2017-18, the figure rose to 11,394 crore by FY 2022-23, driven by RuPay cards and UPI. RuPay card transactions at PoS and e-commerce increased from 67 crore in FY 2017-18 to 126 crore in FY 2022-23, while UPI transactions surged from 92 crore to 8,371 crore in the same period.
PM Modi’s Political Willpower: Driving the Vision
PMJDY’s success is inseparable from PM Narendra Modi’s unwavering political commitment. When launched, sceptics questioned its feasibility, given India’s vast unbanked population and logistical challenges. PM Modi’s vision was to create an inclusive financial ecosystem, breaking the cycle of poverty perpetuated by informal lending and lack of access. His government’s hands-on approach – leveraging technology, simplifying KYC norms, and deploying Business Correspondents (Bank Mitras) – ensured rapid implementation. The scheme’s extension beyond its initial 2018 end date, with enhanced features like doubled overdraft limits (Rs 5,000 to Rs 10,000) and increased insurance coverage (Rs 1 lakh to Rs 2 lakh), reflects Modi’s resolve to adapt and sustain the program.
PM Modi’s emphasis on people-centric governance is evident in his public statements. On the scheme’s 10th anniversary, he wrote, “Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and marginalized communities.” His leadership ensured that banks, RBI, and NPCI collaborated seamlessly, with the Jan Dhan Darshak App enhancing accessibility by mapping banking touchpoints.
The JAM Trinity and Seamless DBT: A Paradigm Shift
PMJDY laid the foundation for the JAM Trinity (Jan Dhan, Aadhaar, Mobile), a revolutionary framework that transformed government welfare delivery. Unlike the era when former Prime Minister Rajiv Gandhi lamented that only 15 paise of every rupee reached the poor due to systemic leakages, the JAM Trinity ensured near-100 per cent efficiency in Direct Benefit Transfers (DBT). By linking Jan Dhan accounts with Aadhaar and mobile numbers, the government eliminated middlemen, ensuring funds reached beneficiaries directly.
Since its inception, DBT via PMJDY has facilitated transfers worth Rs 39 lakh crore, covering schemes like PM-KISAN, MGNREGA, and COVID-19 relief. During the 2020 lockdown, over 20 crore women’s PMJDY accounts received Rs 500 monthly ex-gratia payments within 10 days, showcasing the system’s efficiency. The Economic Survey 2022-23 credits the JAM Trinity with saving India during the pandemic by enabling rapid deployment of financial aid and the CoWIN vaccination platform.
Enabling UPI’s Massive Success
PMJDY’s integration with digital infrastructure catalysed the meteoric rise of the Unified Payments Interface (UPI), making India a global leader in digital payments. With over 40% of the world’s real-time digital transactions occurring in India, UPI’s success is deeply tied to PMJDY’s widespread account penetration. The issuance of 33.98 crore RuPay debit cards and the deployment of 79.61 lakh PoS/mPoS machines by June 2022 facilitated digital adoption among the poorest. UPI transactions grew from 1.79 crore in FY 2016-17 to 4,596 crore in FY 2021-22, with PMJDY account holders at the forefront.
The scheme’s focus on financial literacy and simplified banking access empowered even rural and semi-urban populations to embrace UPI, transforming small vendors, farmers, and labourers into active participants in the digital economy. The Jan Dhan Darshak App further supported this by connecting users to banking services, reinforcing UPI’s accessibility.
Enabler for Other Schemes
PMJDY has been a critical enabler for flagship schemes like PM-KISAN Samman Nidhi and PM Awas Yojana. By providing bank accounts to the unbanked, it ensured that financial assistance under PM-KISAN – Rs 6,000 annually to farmers – reached beneficiaries directly. Similarly, PM Awas Yojana’s housing subsidies were seamlessly transferred to PMJDY accounts, enabling millions to access affordable housing. Other schemes, like PM SVANidhi for street vendors and Ayushman Bharat for healthcare, also leveraged PMJDY’s infrastructure, amplifying their reach and impact.
The scheme’s role in social security programs like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) further underscores its versatility. By linking these schemes to PMJDY accounts, the government ensured that insurance and pension benefits reached the marginalised, enhancing financial security.
Minimising Poverty: A Socio-Economic Game-Changer
PMJDY’s role in poverty reduction is profound. By integrating 55.44 crore people into the formal banking system, it provided access to savings, credit, and insurance, breaking the cycle of predatory lending. A 2021 SBI report noted that states with higher PMJDY account balances saw reduced crime rates and lower alcohol and tobacco consumption, indicating broader social benefits. The scheme’s emphasis on women’s empowerment – 30 crore women account holders – has fostered economic independence, with women-led MSMEs benefiting significantly through platforms like GeM and ONDC.
The linkage with DBT has ensured that welfare funds reach the poorest, directly impacting their livelihoods. For instance, PM-KISAN transfers have supported rural economies, while PM Awas Yojana has improved living standards. The scheme’s rural focus (67 per cent of accounts) has reduced regional inequalities, aligning with the government’s goal of inclusive growth.
The Pradhan Mantri Jan Dhan Yojana stands as India’s most transformative socio-economic reform, redefining financial inclusion on a global scale. Its data-driven success – 53.13 crore accounts, ₹2.3 lakh crore in deposits, and 36 crore RuPay cards—reflects its unparalleled reach. PM Narendra Modi’s political willpower turned scepticism into reality, creating a robust ecosystem through the JAM Trinity and UPI, which eliminated leakages and empowered the poorest. By enabling schemes like PM-KISAN and PM Awas Yojana, PMJDY has catalysed poverty reduction and inclusive growth. As Modi stated, it “personifies dignity, empowerment, and the opportunity to participate in the economic life of the nation.” With strong foundations, PMJDY is poised to drive India toward a Viksit Bharat, setting a model for the world to follow.
The writer is a well-known author and national spokesperson of BJP. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
