PMJDY

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion program launched by the Government of India in 2014 to expand access to banking services across the country. It aims to provide universal access to basic banking facilities, including at least one basic savings bank deposit account for every household, a RuPay debit card, and access to direct benefit transfers for government subsidies and other programs.

Key features of PMJDY include zero or low minimum balance basic savings bank deposit accounts, the issuance of RuPay debit cards, and the use of Aadhaar-based e-KYC to simplify account opening. Accounts are accessible through commercial banks, regional rural banks, cooperative banks, and post offices. The scheme also offers an overdraft facility for eligible account holders after a period of satisfactory operation, with the limit revised over time (commonly up to Rs 10,000). In addition, PMJDY provides insurance coverage for account holders: life insurance up to Rs 30,000 and accidental insurance up to Rs 2 lakh, subject to eligibility and specific terms.

Eligibility and administration are designed to be broad, with Indian residents able to open PMJDY accounts, including accounts for minors aged 10 and above with guardians. Account operations are supported across a wide network of banks and post offices, facilitating access in rural and underserved areas.

Impact and scope: PMJDY has been a cornerstone of India’s financial inclusion strategy, enabling direct benefit transfers, improving access to formal banking, and integrating a large number of new customers into the financial system. The program has also faced challenges such as account dormancy in some regions and the need for ongoing financial literacy and customer onboarding to sustain use.