by Manoj Motwani
The Pradhan Mantri Jan Dhan Yojana (PMJDY) celebrates a decade of success in expanding financial inclusion, benefiting 531 million individuals in India. This initiative has empowered marginalized communities, especially women, through bank accounts and financial products. PMJDY's objectives focus on banking the unbanked, securing the unsecured, and funding the unfunded, with notable enhancements over the years. Prime Minister Modi emphasizes the scheme's transformative impact on economic empowerment. PMJDY's achievements showcase India's leadership in financial inclusion, leveraging digital infrastructure for growth and equality amidst the COVID-19 pandemic.
A decade ago, the Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched with a resolute vision: to extend the reach of formal banking services to the marginalized and economically disadvantaged segments of society. Today, as it marks a significant milestone of successful implementation, PMJDY stands tall as one of the most triumphant financial inclusion endeavors globally.
From a nation grappling with the challenge of widespread unbanked populations, India has made remarkable strides, with PMJDY benefiting a staggering 531 million individuals. This initiative has not only facilitated the distribution of welfare funds but has also ushered in a new era of financial inclusion for women, youth, and marginalized communities. The percentage of banked adults has surged from a mere 30% in 2014 to an impressive 80% today.
The success story of Jan Dhan Yojana is multifaceted. On one hand, it is a tale of numbers — over 531 million individuals now hold bank accounts, with a cumulative deposit balance exceeding Rs. 2.3 trillion. Women own a significant share of these accounts, with rural India witnessing a remarkable 66.6% ownership by women. The issuance of RuPay debit cards to 361.4 million PMJDY account holders has further streamlined financial transactions, leading to direct transfers totaling nearly Rs. 39 trillion. This monumental initiative has not only facilitated digitalization but has also bolstered e-commerce and payment systems, culminating in a staggering 55.7 billion UPI transactions as of July 2024.
The objectives of PMDJY encapsulate a three-pronged approach: "Banking the Unbanked," "Securing the Unsecured," and "Funding the Unfunded." Through simplified procedures, zero balance requirements, and a range of financial products like micro-insurance and micro-credit, PMJDY has extended a financial lifeline to those traditionally excluded from mainstream banking services.
The program's evolution over the years has been marked by enhancements aimed at widening its impact. Initially focused on universal access to banking services, PMJDY has expanded its reach to target every unbanked adult. Noteworthy improvements include an increase in insurance coverage, higher overdraft limits, and an age extension for overdraft eligibility.
On this occasion, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, in a message, said, “Universal and affordable access to formal banking services is essential for achieving financial inclusion and empowerment. It integrates the poor into the economic mainstream and plays a crucial role in the development of marginalised communities.”
“By providing universal, affordable, and formal financial services — including bank accounts, small savings schemes, insurance, and credit — to the previously unbanked, PM Jan Dhan Yojana has transformed the banking and financial landscape of the country over the last decade,” the FM said.
Marking a decade since the Pradhan Mantri Jan Dhan Yojana was launched. Prime Minister Modi said, "For me, this initiative was more than just a policy - it was an endeavour to build an India where each and every citizen, irrespective of one’s economic background, has access to the formal banking apparatus." "It was almost 65 years since Independence, but access to banking was a distant dream for almost half of our households. Theirs was a world where savings were kept at home, vulnerable to loss and theft. Access to credit was often at the mercy of predatory lenders. The absence of financial security held back so many dreams... Yes. The scale of the challenge was enormous, but so was the determination of the people of India to ensure it becomes a reality." He further added.
PM Modi said " The life journeys of those who benefitted due to this scheme are very touching and inspiring. PM Jan Dhan Yojana personifies dignity, empowerment and the opportunity to participate in the economic life of the nation. The foundations laid by this scheme are strong, but we have even more work to do! We will continue to build on this success to build a Viksit Bharat. Today is also the occasion to congratulate each and every beneficiary of this scheme and laud the efforts of the countless banking staff who made financial inclusion their mission and ensured a better life for their fellow Indians!"
The success of PMJDY serves as a beacon of hope, showcasing India's prowess in leveraging financial inclusion to bridge inequalities and drive economic growth. As global recognition of India's digital payments success story grows, it is evident that the country has set a benchmark for financial inclusivity on a global scale.
The remarkable achievements of PMJDY during the challenging years of the COVID-19 pandemic underscore its mission-driven approach, regulatory backing, and the pivotal role of digital infrastructure like Aadhaar in ensuring seamless financial access.
As India continues on its journey towards a more inclusive and empowered society, the legacy of PMJDY stands as a testament to the nation's collective resolve and unwavering determination to build a brighter future for all its citizens. Cheers to the beneficiaries of this transformative scheme and the dedicated banking staff who have championed the cause of financial inclusion, paving the way for a more prosperous and equitable India.
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