10 years of Jan Dhan: 531 million banked, 57% women, Rs 2.31 trillion deposits, the milestones

India marks the 10th anniversary of the Pradhan Mantri Jan Dhan Yojana (PMJDY) on August 28, 2024, a milestone that reflects the program's unprecedented impact on financial inclusion. Since its launch in 2014, PMJDY has successfully banked over 53.14 crore beneficiaries, establishing itself as the world’s largest financial inclusion initiative.

Here are some key facts:

Number of Accounts: Over the past decade, more than 53.14 crore PMJDY accounts have been opened, representing a 3.6-fold increase from March 2015, when only 15.67 crore accounts existed. These accounts now hold deposits totaling Rs 2.31 lakh crore, a 15-fold rise since August 2015.

Rural Outreach: Approximately 66.6% of the accounts (35.37 crore) are held by beneficiaries in rural and semi-urban areas, with women accounting for 55.6% (29.56 crore) of the total. This highlights the scheme's focus on reaching India’s most underserved communities.

RuPay Cards: The PMJDY initiative has issued 36.14 crore RuPay cards, contributing significantly to the growth of digital transactions, which surged from 2,338 crore in FY19 to 16,443 crore in FY24. This underscores the scheme’s role in advancing India’s digital economy.

While PMJDY has seen remarkable successes, challenges remain. Approximately 8.4% of accounts currently have a zero balance, and around 20% are inactive. Despite these issues, the scheme stands as a significant milestone in India’s financial inclusion journey, connecting millions to essential banking services and facilitating direct benefit transfers.

Empowering Women: The initiative has been particularly beneficial for women, increasing the percentage of women with bank accounts from 53% in 2015-16 (NFHS-4) to 79% in 2019-21 (NFHS-5). This progress has helped reduce the gender gap in financial services access from 20% in 2011 to 6% in 2017, which is below the global average of 9%. During the COVID-19 pandemic, over 200 million women PMJDY account holders received timely financial assistance, highlighting the scheme’s critical role in crisis management.

Second Order Benefits: Beyond banking, PMJDY has had broader socio-economic impacts, including increased formal sector lending to micro-industries and services, and a reduction in crime rates in states with higher PMJDY account balances. By August 2024, the scheme had facilitated the opening of over 530 million accounts, with nearly 300 million (55.6%) belonging to women.

Big Numbers:

1. Total Jan Dhan accounts: 531 million beneficiaries—surpassing the entire population of the European Union.
2. Deposits: Rs. 2.31 trillion held in beneficiary accounts.
3. Internet Subscribers: The number of internet subscribers in India grew from 251.59 million in March 2014 to 954.40 million in March 2024, with a Compounded Annual Growth Rate (CAGR) of 14.26%.
4. Women Beneficiaries: Nearly 57% of beneficiaries are women (300 million), more than twice the population of Russia.
5. Rural and Semi-Urban Beneficiaries: Two-thirds of beneficiaries (350 million) are from rural and semi-urban areas.
6. Initial Year Success: 179 million PMJDY accounts were opened during the first year of the scheme.
7. Account Penetration: The percentage of households with a bank or post office account is nearly the same in urban (95%) and rural (96%) areas.
8. RuPay Debit Cards: 361.3 million RuPay cards have been issued as of August 2024, provided free of cost to Jan Dhan account holders.
9. Insurance and Overdraft Facilities: Jan Dhan accounts come without a minimum balance requirement, and RuPay debit cards include accident insurance of Rs. 0.2 million and an overdraft facility of up to Rs. 10,000 (approximately $117).
10. Increase in RuPay Cards: The number of RuPay cards in August 2023 was over 2.5 times that in March 2015.
11. Eligibility for Insurance Benefits: Cardholders who use their RuPay debit card for at least one transaction within 90 days prior to an accident, including the accident day, are eligible for insurance benefits.
12. Average Deposits: The average deposit amount in PMJDY accounts increased nearly threefold, from Rs. 1,279 in 2015 to Rs. 3,761 in 2022.
13. International Recognition: PMJDY has received global acclaim for its transformative impact on financial inclusion. A G20 report by the World Bank highlighted India’s achievement of its financial inclusion goals in just six years—a journey that would have taken 47 years without advanced digital public infrastructure.