Introduction

PMJDY, launched in 2014, is India’s flagship financial inclusion programme aimed at providing affordable access to banking, credit, insurance, pension and DBT services.

Role in Inclusive Growth

• Banking the unbanked: Provides zero-balance basic savings accounts through banks/Bank Mitras.
• Social security: Links beneficiaries with insurance, pension and DBT schemes.
• JAM-enabled governance: Aadhaar-Mobile linkage facilitates transparent DBT and reduces leakages.
• Formalisation: Brings savings into the formal financial system and helps build credit history.
• Women & rural inclusion: Around 56% accounts are held by women and 78% operate in rural/semi-urban areas.

Key Challenges

• Dormant accounts and limited active usage.
• Digital literacy gaps and fear of cyber fraud.
• Poor connectivity causing last-mile transaction failures.
• Limited uptake of overdraft facilities.
• Predominantly cash-based usage, limiting savings and investment behaviour.

Way Forward

Shift from “access to accounts” → “active financial usage” through financial literacy, stronger Bank Mitra networks, improved last-mile technology, micro-savings, insurance and credit products.

Conclusion

PMJDY has laid the foundation for inclusive and formal finance. Its next phase should focus on financial deepening and wealth creation, rather than merely expanding account ownership.