Pradhan Mantri Jan Dhan Yojana (PMJDY): Financial inclusion scheme providing access to banking and financial services



The Pradhan Mantri Jan Dhan Yojana is a National mission of financial inclusion for all. Prime Minister Shri Narendra Modi launched it on 15th August 2014. The development philosophy “Sab ka saath sab ka vikas” launches it. The mission of this scheme is to enable all households with easy access to financial services.

All households will have bank accounts with a RuPay debit card. They will also have access to credit, insurance and pension for their social security. This financial inclusion will not only bring excluded sections into the financial mainstream. But also to transfer the benefits of various government subsidy schemes more efficiently.



Financial inclusion is a national priority of the Government. This scheme will enable inclusive growth for all. The primary goal of PMJDY is to provide universal access to banking facilities. Key objectives include:

  • Opening accounts for all – unbanked households
  • Providing easy access to credit, insurance, and pension schemes
  • Providing digital awareness
  • Providing financial literacy
  • Reducing leakage in subsidies through Direct Benefit Transfer (DBT) to bank accounts
  • Making the financial system strong
  • Creating a national ID system
  • Making a strong payment infrastructure using inter-mobile payment services
  • Creation of a credit guarantee fund to cover the default in an overdraft account
  • Providing micro-insurance to the eligible account holder
  • Unorganized sector Pension schemes like Swavalamban


Role of technology in financial inclusion

We cannot overstate technology’s role in expanding financial inclusion for the PMJDY scheme. By adapting new technologies, this scheme is now reaching all over the nation. Technology is helping to bridge the gap between financial institutions and the unbanked population. Here are a few roles listed below:

  • By leveraging the latest technology like e-KYC, IMPS, AEPS, and mobile banking. It is cost-effective and easy to reach.
  • CBS is a step towards enhancing banking services to the customer. Products like RTGS, NEFT, mobile banking, etc, become easy to use.
  • A multi-channel branchless approach using handheld devices like mobile, micro-ATMs, etc.
  • Encouraging e-KYC
  • RuPay debit by NCPI offers lower cost and affordability. It also offers customized products and protection of information related to Indian customers.



PMJDY possesses several features that make it a game-changer in financial inclusion. Here are some features:

  • Technology plays a crucial role in expanding financial inclusion for the PMJDY scheme.
  • We can open a zero-balance account.
  • An overdraft facility of Rs. 10000/- for Aadhar-linked eligible account holders. The age limit for an overdraft facility is 18-65 years.
  • You can open a Rupay debit card with an inbuilt Rs. 2Lakh personal accident insurance cover after number 28.08.2018.
  • A minor above 10 years old is also eligible to open the account.
  • This account is eligible for direct benefit transfer (DBT), Pradhan Mantri Jeevan Beema Yojna(PMJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA).
  • This plan enhances financial literacy about access to credit and insurance.
  • The pension scheme is also introduced, and remittance facilities are also provided.



PMJDY experiences significant growth in financial inclusion, which requires addressing some challenges. Here are a few challenges:

  • Telecom connectivity

In tribal and hilly areas, telecom connectivity is not available. So, Bank Mitr ( Bank Correspondent) is set up to ease the account opening process. Yet, the government is working with the Telecom department to overcome this challenge.

  • Keeping accounts operative

A significant part of these PMJDY accounts remain dormant. It is due to non-awareness in the people and duplicity of accounts.

  • Awareness of the benefits

To achieve success in PMJDY accounts, we need to provide awareness about banking products. To help this, the Bank Mitr model was launch. It is a doorstep banking service in the rural area. This scheme provides basic banking services, RuPay cards, OD facility, and many more. It also suggests the banking products available and their eligibility.

  • Commission on direct benefit transfer (DBT)

The commission on DBT should also cover LPG and MGNREGA.

  • Coverage on hill and rural areas

There is a telecom connectivity challenge for the Government in the part of northeast, J&K, and Uttarakhand. Ensuring services reach such remote and rural areas is still a challenge due to its infrastructural limitations.



Since its launch, PMJDY has achieved many milestones up to the present day. Here are a few of them:

  • PMJDY account: Account opening has significantly grown to 51.04 crore from the day of launch.
  • Promotion of RuPay card benefits
  • Jan Dhan Dharshak app
  • Smooth transaction Direct Benefits Transfer
  • Encouraging digital transaction
  • Improving access for micro-investment and micro-credit like flexi recurring deposits
  • From 23rd to 29th August, 18,096,130 saw the opening of the most new bank accounts, totaling 2014. For this achievement, this scheme has received a Guinness World Record.
  • This scheme has gained international recognition for its efforts toward financial inclusion and poverty alleviation.



PMJDY scheme is a game-changer in India’s economy of financial inclusion. Providing banking services access to lower groups of society has not only empowered them but also helped in economic development. Yet, the journey of PMJDY toward financial inclusion has its challenges. Such as low financial literacy, chances of a dormant account, and reach in rural or hill areas.

A new feature, Bank Mitr, is introduce to overcome the challenge. They will help to deliver the banking services at the customer’s door step. Only by confronting and overcoming these challenges can we ensure the enduring success and impact of this scheme. PMJDY scheme is creating an inclusive and prosperous future for all.


Also Read: Pradhan Mantri Mudra Yojana (PMMY): Business Loan Scheme

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