Pradhan Mantri Jan Dhan Yojana (PMJDY)

It was launched in 2014 and as the largest financial inclusion program ever to be undertaken in the world. The objective of PMJDY is to ensure access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to weaker sections and low income groups.

Achievements

• PMJDY Accounts have grown three-fold from 14.72 Crore in Mar 2015 to 43.04 Crore as on 18-08-2021.
• 55% Jan Dhan account holders are women and 67% Jan Dhan accounts are in rural and semi-urban areas.
• Out of total 43.04 crore PMJDY accounts, 36.86 crore (86%) are operative.

Issues/Challenges

• Telecom connectivity and access to network is a major problem in remote rural areas, which delays opening of accounts in these areas.
• Lack of financial literacy affects the operation of Jan Dhan accounts.
• Usage of ATM cards, e banking etc. is still very low.
• It puts very high economic costs on the Government as well as the banking sector.
• Banking Correspondents are not regulated and trained properly.
• PMJDY have not just brought informal sector to the mainstream economy but have also provided financial literacy to the poor and the illiterate in both urban and rural areas. Hence such schemes are necessary to ensure inclusive growth in the nation.