Pradhan Mantri Jan Dhan Yojana (PMJDY)
Current Affairs & Government Schemes › Financial Inclusion and Insurance Schemes · Topic 8.1
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is the National Mission for Financial Inclusion of the Ministry of Finance, launched on 28 August 2014 after its announcement in the Independence Day speech of 2014. It gives every unbanked adult a basic savings bank account with no minimum balance, a RuPay debit card with accident insurance cover, and an overdraft facility of up to Rs 10,000. The Department of Financial Services runs it with banks. As of 19 August 2026, about 59.09 crore accounts were reported, with deposits of about Rs 3.17 lakh crore, and women held about 55.7 per cent of the accounts.
5 min read · UPSC Prelims · Current Affairs & Government Schemes · Financial Inclusion and Insurance Schemes
At a Glance
- Ministry Finance, Department of Financial Services
- Launched 28 August 2014
- Core product Zero-balance basic savings account
- Add-ons RuPay card, accident cover, overdraft
- Accounts About 59.09 crore (August 2026)
- Exam link UPSC Prelims, Current Affairs and Government Schemes: Financial Inclusion and Insurance Schemes
Where Does It Fit?
This is the first topic of the macro on financial inclusion and insurance. The three social security schemes that follow in the macro are all linked to the bank account that Jan Dhan creates. Previous topic: Start-Up Village Entrepreneurship Programme (SVEP). Next topic: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
What Does a Jan Dhan Account Offer?
| Feature | Detail |
|---|---|
| Account | A basic savings bank account with no minimum balance, opened in any bank branch or through a Business Correspondent, with simplified know-your-customer rules |
| Debit card | A RuPay debit card with an in-built accident insurance cover of Rs 1 lakh, raised to Rs 2 lakh for accounts opened after 28 August 2018 |
| Overdraft | Up to Rs 10,000 for eligible account holders, raised from Rs 5,000 in 2018, with the age limit set at 18 to 65 years. An amount of up to Rs 2,000 is available without conditions |
| Interest and deposits | Interest on deposits like any savings account, and deposits can be made without a minimum |
| Direct benefit transfer | Used as the base for the transfer of subsidies and welfare payments directly to beneficiaries |
| Insurance and pension | Eligible for micro-insurance and pension schemes, as in Jan Suraksha Schemes (Umbrella Social Security Schemes) |
| Digital | Mobile banking, the Unified Payments Interface and the Aadhaar Enabled Payment System can be used with the account |
What Are the Pillars and Recent Changes?
- Original pillars: Banking the unbanked, securing the unsecured and funding the unfunded, with universal access to banking, financial literacy and a credit guarantee fund
- Later pillars: Micro-insurance and an unorganised sector pension, delivered through Atal Pension Yojana and the insurance schemes
- PMJDY 2.0: In August 2018 the scheme moved from households to every unbanked adult and was made open-ended, with the overdraft limit and accident cover raised
- Day one: On the day of launch more than 1.5 crore accounts were opened, and the campaign set a Guinness World Record for accounts opened in a week
- Latest numbers: As of 19 August 2026, about 59.09 crore accounts, about Rs 3,16,514 crore in deposits, about 55.7 per cent women and about 77.8 per cent in rural and semi-urban areas, as reported with the scheme anniversary
- Inoperative accounts: An RTI reply reported in 2026 that about one in four accounts was inoperative and about 5.7 crore had zero balance. The Government has run re-KYC campaigns to revive accounts
What Else Should You Remember?
- JAM trinity: Jan Dhan, Aadhaar and Mobile numbers form the base of direct benefit transfer, and the Economic Survey of 2014-15 used this term
- Banking outlets: The mission mapped villages and set up banking outlets within a short distance of every village, using Business Correspondents
- Gender: More than half of the accounts are held by women, which has helped their access to savings and benefit payments
- Use in crises: Jan Dhan accounts were used to pay relief to women and farmers during the COVID-19 lockdown, as in the Pradhan Mantri Garib Kalyan package
- Deposits: Average balance per account has risen over the years, which shows growing use, but many accounts are used only to receive transfers
- Sources of gaps: Duplicate accounts, accounts opened to meet targets, low usage and ATM and agent access that is thin in some regions
- Link with insurance: Many beneficiaries of the life and accident insurance schemes enrolled through their Jan Dhan accounts
- Financial literacy: Financial literacy centres and the Reserve Bank campaigns support the use of the account
- Prelims angle: Questions ask about the date, the overdraft limit, the card cover and the ministry
- Exam trap: The Rs 2 lakh accident cover applies only to accounts opened after 28 August 2018
- Beyond access: The next step is quality of inclusion, which includes credit, insurance and pension and not only accounts
Why Does It Matter for the Exam?
- Date and ministry: 28 August 2014, Ministry of Finance
- Features: Zero balance, RuPay card, accident cover and overdraft
- Limits: Overdraft Rs 10,000 and accident cover Rs 2 lakh for newer accounts
- Concept: JAM trinity and direct benefit transfer
- Common errors: Giving the old overdraft limit of Rs 5,000 or the wrong ministry
As an analytical point, Jan Dhan has solved the problem of access, but usage and credit remain weak. The measure of success is now active accounts, savings and loans, not the number of accounts opened.
Why Is This Topic Important?
- Basics Date, ministry and features
- Numbers Accounts and deposits
- Concepts JAM and DBT
What Came Next?
The next topic covers the life insurance scheme that is available to Jan Dhan and other savings account holders. Next topic: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Key People and Terms
- PMJDY National Mission for Financial Inclusion
- JAM Jan Dhan, Aadhaar, Mobile
- BC Business Correspondent
- Overdraft Short-term credit on the account
- Inoperative account Account with no transaction for long
Exam Corner
Points to Remember
- Launched: 28 August 2014.
- Ministry: Finance (DFS).
- Overdraft: Rs 10,000.
- Card cover: Rs 2 lakh after 2018.
- Accounts: about 59 crore in 2026.
Do Not Confuse With
- PMJDY and PMJJBY Bank account scheme versus life insurance scheme
- PMJDY and Aadhaar Bank account versus identity number
- PMJDY 2014 and PMJDY 2.0 of 2018 Household-based first phase versus every adult and higher limits
Memory Hook
Zero balance, RuPay in hand, overdraft in need: Jan Dhan opens the door to the bank.
Mains Angle
Questions ask about the depth of financial inclusion. These points give a balanced frame.
- Achievements Near-universal accounts, direct benefit transfer and women access
- Gaps Inoperative accounts, low credit and duplicates
- Way forward Active use, credit, insurance and digital literacy
A Question You May Face
An original practice question, not a past paper question.
“Evaluate the achievements and limitations of the Pradhan Mantri Jan Dhan Yojana in advancing financial inclusion in India.”
How to Answer
- Introduce Mission, date and numbers.
- Achievements Access, DBT, women.
- Limits Inactive accounts, credit.
- Way Usage, credit, literacy.
GS Relevance
Frequently Asked Questions
What is the Pradhan Mantri Jan Dhan Yojana?
PMJDY is the National Mission for Financial Inclusion, launched on 28 August 2014 by the Ministry of Finance. It gives every unbanked adult a zero-balance basic savings account, a RuPay debit card with accident cover and an overdraft facility, and it is the base for direct benefit transfer.
What benefits does a Jan Dhan account have?
A Jan Dhan account has no minimum balance and comes with a RuPay debit card that includes accident insurance of Rs 1 lakh, or Rs 2 lakh for accounts opened after 28 August 2018. An overdraft of up to Rs 10,000 is available, and the account supports direct benefit transfers and access to insurance and pension.
How many Jan Dhan accounts are there?
As reported with the twelfth anniversary in August 2026, there were about 59.09 crore accounts with deposits of about Rs 3.17 lakh crore. About 55.7 per cent were held by women and about 77.8 per cent were in rural and semi-urban areas. Figures change often, so quote them with a date.
What is the JAM trinity?
JAM stands for Jan Dhan accounts, Aadhaar numbers and mobile numbers. Together they let the Government send subsidies and welfare payments directly into the bank account of the beneficiary, which reduces leakages. The term became popular after the Economic Survey of 2014-15 described it.
What are the main criticisms of Jan Dhan?
Critics point to inoperative accounts, duplicate accounts opened to meet targets, low average balances and thin use of credit and overdraft. An RTI reply in 2026 reported that about one in four accounts was inoperative. Banks have run re-KYC drives and push digital payments to revive use.
PYQ Practice — Statement Analysis
1 PMJDY was launched on 28 August 2014.
It was announced on 15 August 2014.
2 PMJDY is a scheme of the Ministry of Rural Development.
It belongs to the Ministry of Finance.
3 The overdraft limit under PMJDY was raised to Rs 10,000 in 2018.
It was Rs 5,000 earlier.
4 The JAM trinity refers to Jan Dhan, Aadhaar and Mobile.
It is the base of direct benefit transfer.
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