Transforming Financial Inclusion: The Impact of Jan Dhan Yojana in India

New Delhi: India’s financial inclusion programme has marked a major landmark, with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts now holding a cumulative balance of ₹2.75 lakh crore, according to the Department of Financial Services (DFS). The figure translates to an average balance of ₹4,815 per Jan Dhan account, signalling deeper banking penetration across the country.

Speaking at the 69th Foundation Day Lecture on ‘India’s Financial Inclusion Journey’ at the Administrative Staff College of India (ASCI), DFS Secretary M Nagaraju said India has undergone “nothing short of a miracle” in the way financial services are accessed and utilised. He credited PMJDY, launched in 2014, with bringing more than 57 crore people into the formal banking network, significantly widening the financial safety net.

Nagaraju said financial inclusion has become central to India’s development model, reinforced through Direct Benefit Transfers (DBT) that ensure transparent and timely disbursal of government assistance. In the current financial year alone, ₹3.67 lakh crore has been transferred directly to beneficiaries, eliminating leakages and enhancing service delivery.

Highlighting demographic trends, the DFS Secretary said that 78.2 per cent of Jan Dhan accounts are based in rural and semi-urban regions, while women hold nearly 50 per cent of the total accounts, demonstrating the scheme’s impact on rural empowerment, gender inclusion and access to banking services.

India’s Financial Inclusion Index now stands at 67 as of March 2025, reflecting sustained improvements in accessibility, usage and quality of financial services nationwide. Nagaraju said ongoing reforms under PMJDY are continuing to strengthen the financial ecosystem.

Responding to questions, Nagaraju confirmed that the Life Insurance Corporation of India (LIC) is in the final stages of digitising its product purchase and benefits disbursement platforms, with fully digital services expected to roll out within the next few months.

India’s financial inclusion efforts continue to receive momentum through awareness campaigns and field-level initiatives nationwide. At a recent Jan Dhan anniversary event in Indore, RBI Governor Sanjay Malhotra reiterated that financial inclusion remains at the core of India’s growth story, reinforcing its role in equitable and sustainable development.

IANS

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