Pradhan Mantri Jan Dhan Yojana (PMJDY) is India’s National Mission for Financial Inclusion, launched on 28 August 2014 to give every household – and, from 2018, every adult – a basic savings account with a RuPay debit card, access to credit, insurance and pension, and a channel for receiving government benefits directly. Implemented by the Department of Financial Services under the Ministry of Finance, it completed ten years in 2024 with more than 53 crore accounts.
Context
- PMJDY completed ten years on 28 August 2024; the government set a target of more than 3 crore new accounts in 2024-25.
- From 14.7 crore accounts in 2015 the scheme reached over 52 crore in 2024, with deposits growing from about Rs 15,600 crore to Rs 2.32 lakh crore – roughly 30 per cent a year – and the average balance rising four-fold from Rs 1,065 to Rs 4,476.
- Of the account holders, about 29.56 crore are women and 35.37 crore accounts are in rural and semi-urban areas; on the Jan Dhan Darshak app, 5.99 lakh of about 6.01 lakh mapped villages have a banking outlet within 5 km.
The Six Pillars of PMJDY
- Universal access to banking facilities – a banking outlet within a reasonable distance of every village.
- A basic savings bank account with a RuPay debit card for every unbanked adult.
- Financial literacy programmes.
- A Credit Guarantee Fund to cover defaults on overdrafts.
- Micro-insurance for account holders.
- Unorganised-sector pension schemes such as Atal Pension Yojana.
A clean PDF of this page with the C4S header — it opens right away, and the link comes to your WhatsApp too.
Account Features and Benefits
- Zero balance: no minimum balance is required; the account is a Basic Savings Bank Deposit Account (BSBDA).
- RuPay debit card with accident insurance of Rs 2 lakh for accounts opened after 28 August 2018 (Rs 1 lakh for older accounts); a life cover of Rs 30,000 was given to accounts opened between 15 August 2014 and 31 January 2015.
- Overdraft up to Rs 10,000 for eligible holders (age 18 to 65) after satisfactory operation of the account; up to Rs 2,000 without conditions.
- Direct Benefit Transfer of subsidies and scholarships; easy enrolment in PMJJBY, PMSBY, Atal Pension Yojana and MUDRA loans.
- No mandatory free cheque book; accounts can be opened with Aadhaar and simplified KYC.
PMJDY 2.0 (from August 2018)
- Focus shifted from “every household” to “every unbanked adult”.
- Accident cover on RuPay cards doubled to Rs 2 lakh and the overdraft limit doubled from Rs 5,000 to Rs 10,000; the upper age limit for overdraft raised from 60 to 65.
Challenges
- Multiple accounts opened to claim insurance and overdraft benefits, using different ID documents.
- Low-balance accounts are costly for banks to maintain.
- Some accounts have been misused for laundering money; a few business correspondents have misused their position.
- Financial and digital illiteracy limits the use of savings, insurance and pension products.
Important Facts for Examsmost asked
In 4 days · NABARD Sprint 60: the 2025 cut-offs and your 60-day Phase I plan · Register free →
- Launched 28 August 2014; announced by the Prime Minister on 15 August 2014; Ministry of Finance (DFS).
- Guinness World Record: 1,80,96,130 accounts opened in one week (23-29 August 2014).
- Six pillars; BSBDA with RuPay card; accident cover Rs 2 lakh; overdraft Rs 10,000; PMJDY 2.0 from 28 August 2018.
- Jan Dhan Darshak app launched in 2018 to map banking touch points; JAM trinity = Jan Dhan, Aadhaar, Mobile.
FAQs
Who can open a Jan Dhan account?
Any Indian citizen aged 10 years or above without a bank account; minors above 10 can open one with a guardian.
Is there any charge for the account or the card?
No. The account has no minimum balance and the RuPay card is free; the accident insurance requires that the card has been used within the previous 90 days.
Why is PMJDY asked in banking exams?
It is the foundation of India’s financial inclusion story – DBT, micro-insurance, pensions and UPI adoption all build on it – so the facts above are asked almost every year.
