Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completes nine years of successful implementation

Source: The post is based on the article “Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completes nine years of successful implementation”  published in PIB on 28th August 2023

What is the News?

The Pradhan Mantri Jan Dhan Yojana (PMJDY) – the National Mission for Financial Inclusion – has completed nine years of successful implementation.

What is Pradhan Mantri Jan Dhan Yojana(PMJDY)?

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What is the impact of PMJDY?

PMJDY has been the foundation stone for people-centric economic initiatives.Whether it is direct benefit transfers, COVID-19 assistance, PM-KISAN, wages under MGNREGA, the first step of all these initiatives is to provide every adult with a bank account, which PMJDY has nearly completed.

One in 2 accounts opened between March 2014 to March 2020 was a PMJDY account.

Within 10 days of nationwide lockdown more than about 20 crore women PMJDY accounts were credited with financial assistance of Rs 500 per month for three months through DBT in each women PMJDY account.

What are the achievements of PMJDY?

Number of total PMJDY Accounts: 50.09 crore.Of which 55.6% account holders are women and 66.7% accounts are in rural and semi-urban areas.

Deposits: Deposits have increased about 13 times.

Average deposit per account has increased over 3.8 times.Increase in average deposit is another indication of increased usage of accounts and inculcation of saving habits among account holders.

DBT transactions: About 6.26 crore PMJDY account holders receive direct benefit transfer (DBT) from the Government under various schemes.

Digital transactions in India have experienced remarkable growth due to various initiatives:

– The issuance of over 33.98 crore RuPay debit cards through the Pradhan Mantri Jan-Dhan Yojana (PMJDY).

– The installation of 79.61 lakh Point of Sale (PoS) and mobile Point of Sale (mPoS) machines.

– The introduction of mobile-based payment systems like UPI (Unified Payments Interface).

– Due to these initiatives, the growth is evident in the total number of digital transactions, which has surged from 1,471 crore in FY 17-18 to 11,394 crore in FY 22-23. 

– Specifically, UPI financial transactions have seen substantial growth, increasing from 92 crore in FY 2017-18 to 8,371 crore in FY 2022-23. 

– Similarly, the total number of RuPay card transactions at PoS and in e-commerce has risen from 67 crore in FY 2017-18 to 126 crore in FY 2022-23.

What is Jan Dhan Darshak App (JDD App)?

JDD App is a mobile application which provides a citizen centric platform for locating banking touch points such as bank branches, ATMs, Banking Correspondents (BCs), Indian Post Payment Banks etc in the country.

The app is also being used for identification of villages which are yet to be covered by banking outlets within a 5 km radius. 

These identified villages are allocated to various banks by concerned SLBCs for opening of banking outlets.The efforts have resulted in a significant decrease in the number of uncovered villages.