The Pradhan Mantri Jan Dhan Yojana (PMJDY) remains a landmark initiative in India’s financial inclusion journey as of 2025. It has revolutionised access to banking for millions, particularly in rural and semi-urban areas. With over 56 crore accounts and deposits exceeding ₹2.6 lakh crore, PMJDY is among the world’s largest financial inclusion efforts. It has become a key enabler for direct benefit transfers, women empowerment, and digital banking innovations.
Overview and Reach
Launched in August 2014, PMJDY aimed to bank the unbanked and serve underserved regions. Two-thirds of its accounts are in rural or semi-urban areas. It provides every citizen a bank account with a RuPay debit card and insurance cover. The scheme has expanded financial access to over half a billion people, making formal banking a reality for many who had no prior access.
Role in Direct Benefit Transfers (DBT)
PMJDY has been crucial for delivering government subsidies and wages directly into beneficiaries’ accounts. Schemes like PM-KISAN, MGNREGA, PMAY, and Ujjwala leverage PMJDY accounts to ensure timely and transparent payments. This reduces leakages and middlemen, improving efficiency and accountability in welfare distribution.
Women Empowerment
Women form nearly 29 crore PMJDY account holders. The scheme has empowered rural women by giving them financial autonomy and inclusion. Self Help Group (SHG) members receive DBT directly, supporting their economic independence. This financial access was vital during crises such as the COVID-19 pandemic, providing a lifeline to vulnerable households.
Technology and Innovation
PMJDY integrates with the JAM trinity—Jan Dhan, Aadhaar, and Mobile—to create a robust digital platform. Nabard has pioneered pilot projects using Central Bank Digital Currency (CBDC) for tenant farmers. AI-powered multilingual voice agents are being deployed in cooperative banks to assist non-literate and digitally excluded customers. These agents enable users to check balances, apply for loans, and receive alerts in their native languages.
Strengthening Rural Financial Institutions
To deepen financial inclusion, the government is computerising Primary Agricultural Credit Societies (PACS). Sahakar Sarathi Private Limited (SSPL) supports rural cooperative banks with centralised digital solutions. These efforts aim to modernise rural banking infrastructure and improve service delivery.
Challenges and Future Directions
Despite its success, 16 per cent of PMJDY accounts remain inactive. A portion of India’s population is still unbanked due to scale and digital literacy gaps. Only 12.6 per cent of rural adults know how to report cybercrimes. Nabard and the Department of Financial Services are addressing these through financial literacy drives and partnerships with fintechs and NGOs. The next phase includes Jan Dhan 2.0, integrating savings, credit, insurance, and pensions, and expanding to rural MSMEs and Farmer Producer Organisations (FPOs).
Questions for UPSC:
- Discuss in the light of Pradhan Mantri Jan Dhan Yojana how financial inclusion can transform rural economies and reduce poverty.
- Examine the role of Direct Benefit Transfers (DBT) in improving governance and welfare delivery in India with suitable examples.
- Analyse the challenges of digital literacy in rural India and suggest measures to enhance cyber safety awareness among rural populations.
- With suitable examples, discuss the potential and challenges of integrating Central Bank Digital Currency (CBDC) in rural financial systems in India.
