Pradhanmantri Jan Dhan Yojna has played a significant role in increasing financial inclusion. Analyze its performance in achieving its objectives.

Pradhanmantri Jan Dhan Yojana (PMJDY) was launched in 2014 to achieve the financial inclusion of unbanked sections of the society, with an aim of at least one bank account per household.

PMJDY has become one of the most successful schemes of the government of India, with many achievements like:

  • More than 44 crore new bank accounts opened with 55% of women.
  • More than 1.5 Lakh crores have been deposited in Jan Dhan accounts, thus reducing zero balance accounts.
  • Major subsidies and transfer payments like MGNREGA, LPG subsidy, etc are sent directly to Jan Dhan Accounts.
  • Accidental insurance cover has been provided to account holders.
  • The overdraft facility has been increased to Rs. 10000.

However, several challenges remain in achieving all its objectives:

  • Usage of bank accounts is limited.
  • Banking infrastructure has not reached rural areas, thus declining usage.
  • Financial literacy is low.
  • Availability of loans and credit for rural areas is less.
  • A significant population is still without any bank accounts.

PMJDY is a significant scheme to ensure inclusive development and channelize savings in the economy. The focus should now shift to increasing bank reach in rural areas and including all unbanked population in a scheme rather than focusing on one member per family.


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