Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Financial Inclusion is one of the top most priorities of the Government. Exclusion of a large number of people from any access to financial services inhibits the growth of our country. There is evidence that financial inclusion is crucial to poverty reduction.

PMJDY is National Mission for Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The scheme has been launched by Prime Minister Shri Narendra Modi on 28th August, 2014.


The main objective of the Yojana is to ensure universal access to banking facilities with at least one basic banking account for every household. Objective of PMJDY is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections and low income groups. This deep penetration at affordable cost is possible only with effective use of technology.

PMJDY focuses on coverage of households as against the earlier plan which focused on coverage of villages. It focuses on coverage of rural as well as urban areas. The earlier Financial Inclusion Plan (Swabhimaan) targeted only villages above 2000 population while under PMJDY whole country is to be covered by extending banking facilities in each Sub-Service area consisting of 1000-1500 households such that facility is available to all within a reasonable distance, say about 5 km.

The technological issues like poor connectivity, on-line transactions will be addressed. Mobile transactions through telecom operators and their established centers as Cash Out Points are also planned to be used for Financial Inclusion under the Scheme.

Jan Dhan Yojana will be implemented in two phases.

Phase-I from 15th August 2014 to 14th August 2015:

  • Universal access to banking facilities for all households across the country through a bank branch or a fixed point Business Correspondents (BC) within a reasonable distance.
  • To cover all households with atleast one Basic Banking Account with RuPay Debit card having inbuilt accident insurance cover of Rs.1 lakh. Further an overdraft facility upto Rs.5000 will also be permitted to Adhaar enabled accounts after satisfactory operation in the account for 6 months.
  • Financial literacy program which aims to take financial literacy upto village level
  • The mission also envisages expansion of Direct Benefit Transfer under various Government Schemes through bank accounts of the beneficiaries of.
  • The issuance of Kisan Credit Card (KCC) as RuPay Kisan Card is also proposed to be covered under the plan.

Phase-II from 15th August, 2015 to 14th August, 2018.

  • Providing micro-insurance to the people.
  • Unorganized sector Pension schemes like Swavalamban through the Business correspondents.

The major shift in this program is that households are being targeted instead of villages as targeted earlier. Moreover both rural and urban areas are being covered this time as against only rural areas targeted earlier. The present plan pursues digital financial inclusion with special emphasis on monitoring by a Mission headed by the financial Minister.

The Yojana is being monitored in a mission mode with the Finance Minister being the Head of the Mission. It is estimated to cover 7.50 crore households with at least one account under the Yojana and also a large number of dormant accounts would be activated. Electronic transfer of subsidies under various schemes of Government would be enabled.