PM Modi Hails Milestone as Over 500 Million Jan-Dhan Accounts Reach Unbanked Citizens
In a significant achievement, Indian Prime Minister Narendra Modi celebrated the milestone of over 500 million accounts being opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY), a flagship financial inclusion scheme. This initiative, launched on August 28, 2014, aims to provide basic banking facilities to the underprivileged, with a remarkable focus on women and those in rural and semi-urban areas.
PMJDY is a key component of the renowned JAM trinity, comprising Jan-Dhan, Aadhaar (a biometric identification system), and mobile connectivity. This trio has gained international acclaim as an efficient method for delivering subsidies directly to the bank accounts of the economically disadvantaged, preventing any diversion of funds.
Prime Minister Modi expressed his satisfaction with this achievement, emphasizing that more than half of these newly opened accounts belong to women, highlighting the empowerment of “Nari Shakti” (women’s power). Furthermore, approximately 67% of the accounts have been established in rural and semi-urban areas, guaranteeing the widespread extension of financial inclusion benefits to every part of the country.
The journey of the national mission on financial inclusion spans nearly nine years, according to the Union finance ministry. Recent reports from banks indicate that the tally of Jan-Dhan accounts has surpassed 500 million as of August 9, 2023. Notably, the cumulative deposits in these accounts have exceeded Rs. 2.03 lakh crore. Additionally, around 340 million RuPay debit cards have been issued to account holders at no cost. These RuPay cards come with a built-in accident insurance coverage of Rs. 2 lakhs. The ministry further revealed that the average balance in PMJDY accounts stands at Rs. 4,076, and over 550 million of these accounts are currently receiving Direct Benefit Transfer (DBT) benefits.
The PMJDY scheme has proven instrumental in transforming the financial landscape of the nation and achieving nearly universal coverage of bank accounts for adults. This success can be attributed to the comprehensive approach of the scheme, which aims to bridge the gap between remote areas and the formal banking system through technology, cooperation, and innovative strategies.
The advantages offered by PMJDY are manifold for its account holders. These accounts do not require a minimum balance, making them accessible to individuals from all walks of life. Furthermore, recipients receive a RuPay debit card without any cost, which includes an accident insurance cover of Rs. 2 lakhs. Additionally, account holders have the opportunity to avail themselves of an overdraft facility of up to Rs. 10,000.
In summary, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) has achieved a monumental milestone by crossing the threshold of 500 million bank accounts, signifying a remarkable leap towards financial inclusion. The visionary initiative led by Prime Minister Narendra Modi has succeeded in extending the benefits of formal banking to previously marginalized sections of society, with a particular emphasis on women and those in rural areas. This accomplishment is a testament to the effectiveness of the JAM Trinity in ensuring the direct and uninterrupted flow of subsidies to those in need. As the journey continues, PMJDY remains a powerful tool in driving economic empowerment and improving the lives of countless citizens across the nation.