India aims to open over 30 million PM Jan Dhan accounts in FY25
The government has set an ambitious target of opening more than 30 million new bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme in the current financial year 2024-25, according to Finance Minister Nirmala Sitharaman. As the flagship financial inclusion program marks its tenth anniversary this week, Sitharaman praised PMJDY for empowering citizens, especially identifying those in need of assistance.
Launched by Prime Minister Narendra Modi in 2014, the PMJDY initiative has seen bank accounts surge nearly four-fold over the past decade, rising from 147 million to over 530 million presently. Deposits under the scheme have jumped as well from Rs. 1,567 crore to more than Rs. 23,100 crore in the same time period. It is hoped that achieving the new target of 30 million additional accounts will bring even more Indians into the formal banking system.
A key goal is targeting remaining adults without accounts as well as new users. Currently, India has in excess of 17.3 billion operational savings accounts of which over 530 million are PMJDY holders. Around 80% of these accounts are active on a regular basis while the other 20% see little activity. The average balance in PMJDY accounts has grown from just over Rs. 10,000 to approximately Rs. 43,500 in the last nine years.
PMJDY has been instrumental in powering various people-centric schemes through direct transfers such as financial relief during Covid-19, support for farmers, and more. Along with Aadhar and mobile connectivity, it comprises the vital ‘JAM trinity' facilitating widespread digital payments across India. Two-thirds of all Jan Dhan accounts are located in rural and semi-urban regions, while over 55% are owned by women. With banking infrastructure now available within 5km for nearly every village nationwide, the program has been a runaway success of financial empowerment and inclusion for all.
