Reflecting on 11 years of Jan Dhan: Modi’s push for financial inclusion

Eleven years ago, Prime Minister Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) to ensure financial access for every Indian household. Since 2014, PMJDY has transformed India’s financial landscape, providing banking, credit, insurance, and pension services to millions. Today, over 56 crore Jan Dhan accounts have been opened, with more than half held by women and two-thirds in rural and semi-urban areas.

PMJDY has gone beyond numbers. It has delivered government benefits directly to citizens, removed fake beneficiaries, empowered women financially, and connected villages to the mainstream economy. The scheme has become a story of trust, empowerment, and dignity, reflecting Modi’s goal of universal financial inclusion. In its first year alone, 179 million accounts were opened under the “Banking the Unbanked” initiative, showing the government’s seriousness in reaching every citizen.

The scheme focuses on three pillars: “Banking the Unbanked” through basic savings accounts with minimal paperwork, “Securing the Unsecured” by providing debit cards with accident insurance, and “Funding the Unfunded” via micro-credit, overdraft facilities, insurance, and pension products. Account holders receive RuPay debit cards, enabling them to access funds digitally, make payments, and withdraw cash easily. Technological tools like the JAM trinity—Jan Dhan, Aadhaar, and Mobile—have ensured that benefits reach the right people without middlemen, marking a major shift from the past.

Financial empowerment and digital growth

PMJDY has significantly increased financial participation. The average deposit per account rose to Rs 4,076 in 2023 from Rs 1,279 in 2015, showing that accounts are being actively used. Over 57 million account holders receive direct benefit transfers (DBT), and only about 6% of accounts have zero balance. Public sector banks hold the majority of deposits, followed by regional rural banks and private banks.

The Modi government strengthened PMJDY by linking it to flagship insurance schemes like PM Jeevan Jyoti Bima Yojana (PMJJBY) and PM Suraksha Bima Yojana (PMSBY), giving account holders access to micro-insurance and investment options. RuPay cards and the UPI system have further promoted digital payments. In December 2023, RuPay credit card spending crossed Rs 10,000 crore in a month, while UPI handles around 19 billion transactions per month, valued at roughly Rs 25 lakh crore. PMJDY, UPI, and RuPay together are driving India’s digital economy, creating a secure and inclusive payment ecosystem.

During the COVID-19 lockdown, PMJDY proved crucial. Over 20 crore women account holders received financial support under PM Garib Kalyan Yojana, minimizing the pandemic’s economic impact. Bank Mitras helped extend banking services to remote areas, ensuring no one was left out. Over 1.86 crore fake farmer records, 4.2 crore fake ration cards, and other fraudulent records were removed, saving the nation more than Rs 2.73 lakh crore and demonstrating the power of digital governance.

PMJDY has become the foundation for several government programs, including PM-KISAN, MGNREGA, and insurance schemes, by providing bank accounts as the first step for delivery. Nearly half of all bank accounts opened between 2014 and 2022 were PMJDY accounts, highlighting its wide reach. Over the years, overdraft limits were increased, accidental insurance cover enhanced, and the upper age limit for benefits raised, showing the government’s commitment to adapting the scheme to citizens’ needs.

India’s digital infrastructure and global potential

PM Modi has emphasized that India’s Digital Public Infrastructure (DPI) offers scalable, secure, and inclusive solutions for global challenges. The success of PMJDY, combined with UPI and Aadhaar, demonstrates how technology can connect citizens, reduce leakages, and increase transparency. India’s 950 million internet users benefit from affordable data, enabling widespread adoption of digital payments and financial services.

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Through PMJDY, India has created a system where benefits reach citizens directly, reducing dependence on middlemen and increasing efficiency. The scheme’s integration with other digital tools has strengthened governance and accelerated financial inclusion. India’s DPI has become a model for other countries, showing how technology and policy can work together to empower citizens and promote economic growth.

In conclusion, PMJDY has revolutionized financial inclusion in India over the last 11 years. By “banking the unbanked, securing the unsecured, and funding the unfunded,” it has empowered citizens, reduced corruption, and strengthened India’s digital economy. Modi’s vision has turned financial inclusion into a national priority, creating a more equitable, transparent, and digitally empowered society.