Why in news
- Pradhan Mantri Jan Dhan Yojana (PM-JDY) completed 12 years of implementation since its national rollout in August 2014.
- Total accounts reached 59.09 crore as of August 2026, with female beneficiaries accounting for 32.92 crore accounts.
What is PM-JDY?
- National Mission for Financial Inclusion launched in 2014 under the Ministry of Finance to ensure affordable access to financial services including basic savings accounts, credit, insurance, and pension.
- Pillar of the JAM (Jan Dhan-Aadhaar-Mobile) trinity enabling direct benefit transfers (DBT) directly into beneficiary accounts without intermediaries.
Key features and operational provisions
- Zero balance provision with no minimum balance requirement for Basic Savings Bank Deposit (BSBD) accounts.
- Built-in benefits include a RuPay debit card with complimentary accident insurance cover up to Rs 2 lakh and an overdraft facility of up to Rs 10,000 for eligible account holders.
- India's Financial Inclusion Index (RBI) rose from 53.9 in 2018 to 67 in 2026, reflecting enhanced financial access, usage, and service quality.
Why it matters
- Reduces economic vulnerability by shifting household savings from informal physical assets to formal banking channels.
- Enhances gender-targeted financial autonomy, with over 55% of PM-JDY account holders being women.
Key terms
JAM Trinity
Integration of Jan Dhan bank accounts, Aadhaar unique identity numbers, and mobile phones to target state subsidies directly to citizens.
Financial Inclusion Index
A comprehensive index published by the Reserve Bank of India measuring financial access, usage, and quality across the country.
Prelims facts
- PM-JDY accounts provide unbanked citizens basic savings accounts with RuPay debit cards and built-in accident cover.
- RBI's Financial Inclusion Index captures parameters of Banking, Investments, Insurance, Postal, and Pension sectors.
Mains discussion
- Evaluate the role of PM-JDY in plugging leakage in social safety nets through Direct Benefit Transfers (DBT).
- Discuss structural challenges remaining in complete financial inclusion, including dormant accounts and low credit linkage.
Source: PIB English