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PM Jan Dhan Yojana



  • GS 3: Inclusive growth and issues arising from it.



  • PM Jan Dhan Yojana (PMJDY) has completed seven years of its implementation.



  • PMJDY Accounts have grown three-fold from 14.72 Crore in Mar’15 to 43.04 Crore as on 18-08-2021.
    • One in 2 accounts opened between Mar’14 to Mar’20 was a PMJDY account.
  • 55% Jan-Dhan account holders are women and 67% Jan Dhan accounts are in rural and semi-urban areas.
  • Out of total 43.04 crore PMJDY accounts, 36.86 crore (86%) are operative.
  • The Jan Dhan Darshak app is a medium to identify villages that are not served by banking touchpoints within 5 km.
    • The efforts have resulted in a significant decrease in the number of such villages.



  • Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion (Read about Financial Inclusion Index from here) to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.


PM Jan Dhan Yojana_3.1



  • To ensure access of financial products & services at an affordable cost.
  • To lower cost & widen reach in the country through use of technology.


Pradhan Mantri Jan Dhan Yojana benefits

  • Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
  • Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.
  • Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.



  • Initially, the scheme was launched based upon the following 6 pillars:
  • Universal access to banking services through Branch and Banking Correspondents (BC).
  • Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every eligible adult
  • Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
  • Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
  • Insurance – Accident cover-up to Rs. 1,00,000 and life cover of 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
  • Pension scheme for Unorganized sector.



Extension of PM Jan Dhan Yojana with new features

  • The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications
  • Focus shifted from ‘Every Household’ to Every Unbanked Adult’
  • RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs for PMJDY accounts opened after 28.8.2018.
  • Enhancement in overdraft (OD) facilities –
    • OD limit doubled from Rs 5,000/- to Rs 10,000/
    • OD upto Rs 2,000/- (without conditions).
  • Increase in upper age limit for OD from 60 to 65 years.


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