Context
The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched on 28 August 2014, has completed 12 years. As of August 2026, it has over 59 crore accounts, with about 56% held by women and nearly 78% located in rural and semi-urban areas.
Explanation
- PMJDY is a National Mission for Financial Inclusion aimed at providing unbanked adults access to formal financial services.
- It provides a Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirement.
- Account holders receive a RuPay debit card carrying accident insurance cover of ₹2 lakh, subject to prescribed conditions.
- Eligible account holders can access an overdraft facility up to ₹10,000.
- PMJDY provides a gateway to savings, credit, insurance, pension and digital payments.
- It forms the banking pillar of the JAM Trinity—Jan Dhan, Aadhaar and Mobile.
- JAM enables Direct Benefit Transfer (DBT) of government benefits into beneficiaries’ accounts, reducing intermediaries and leakages.
- PMJDY also facilitates access to Jan Suraksha schemes, including PMJJBY and PMSBY.
- Business Correspondents (Bank Mitras) extend last-mile banking services, particularly in underserved areas.
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