Jan Dhan Yojana has had an unparalleled impact” PM Narendra Modi

Prime Minister Narendra Modi on Friday lauded the Pradhan Mantri Jan Dhan Yojana (PMJDY) for its “unprecedented scale and transformative outcomes” with 590 million bank accounts in the last 12 years with deposits of ₹3.16 lakh crore.

“Jan Dhan Yojana has had an unparalleled impact,” he said in a post on X, pointed at rapid financial inclusion because of the scheme. According to the latest government data, about 78% of Jan Dhan accounts are in rural and semi urban areas, and 56% of the accountholders are women. PMJDY was launched by him on August 28, 2014.

Highlighting growing participation in formal banking, Union finance minister Nirmala Sitharaman said PMJDY has brought transformation from banking the few to banking for all. PM Jan Dhan Yojana has brought banking closer to the people, opening doors to opportunity, security and economic empowerment, she said.

Growing deposits in Jan Dhan accounts reflect more than increasing balances. They point to greater engagement with formal banking, stronger saving habits and growing financial participation among beneficiaries across the country, the finance ministry said.

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PMJDY ensures that every unbanked adult has access to a basic bank account with zero balance requirements and no maintenance charges. Each account comes with a free RuPay debit card, offering an accident insurance cover of ₹2 lakh, encouraging digital transactions and financial security. Account holders are also eligible for an overdraft facility of up to ₹10,000, providing a safety net during emergencies.

Since August 2018, the focus of the scheme shifted from opening of accounts for every household to every unbanked adult. Over the past 12 years, PMJDY has catalyzed both transformational and directional change, strengthening the banking ecosystem to serve even the poorest and most remote citizens. It has become a cornerstone for Direct Benefit Transfers (DBT), enabling transparent, efficient, and corruption-free delivery of government subsidies and payments.

Also Read: Shifting gender gap in India’s financial inclusion

PMJDY accounts have also played a pivotal role in extending life and accident insurance to millions of workers in the unorganized sector, through schemes like Jan Suraksha Schemes- Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.

The scheme has been a game changer as it helped to create the JAM (Jan-Dhan-Aadhaar-mobile) trinity. JAM has been proven to be a diversion-proof mechanism for subsidy delivery. Through JAM, the government has successfully transferred welfare benefits directly into the bank accounts of the underprivileged, eliminating intermediaries and delays.