Bridging the Financial Divide: PMJDY’s Path to Universal Banking Access

Abstract

Financial Inclusion is aimed to guarantee that all people and communities, particularly excluded and vulnerable groups, have access to financial services at reasonable prices. It entails the accessibility of services like credit, insurance, pensions, savings accounts, and payments irrespective of one's location or income. In order to facilitate economic participation and empowerment, financial inclusion seeks to close the gap between underprivileged groups and the formal financial sector. Financial inclusion not only fosters social justice, economic prosperity, and poverty reduction by expanding banking and financial literacy but also assist people in risk management, efficient saving, and future investment, it also promotes stability.

To boost the extent of financial inclusion in the country, the Government of India launched Pradhan Mantri Jan Dhan Yojana in 2014. This scheme turned out to be India's premier financial inclusion initiative, that aims at giving every household access to banking services. The program provides access to pension and insurance products, accident insurance, overdraft facilities, RuPay debit cards, and zero-balance savings accounts. By combining the JAM trinity—Jan Dhan (bank accounts), Aadhaar (unique ID), and mobile—PMJDY makes it easier to distribute benefits directly and minimizes leaks. With almost 53 crore accounts opened by August 2024, the largest financial inclusion program in the world has been established. In order to promote social security and inclusive growth, PMJDY seeks to empower the unbanked and integrate them into the official financial system.

It can thus be said that, Millions of underprivileged and unbanked Indians now have greater access to banking thanks to PMJDY. By eliminating obstacles like minimum balance requirements and complicated documentation, it has made it possible for low-income groups, women, the impoverished, and those living in rural areas to engage in the banking system for the first time. Through overdraft protection and accident insurance, the program has guaranteed financial stability and through the integration of bank accounts with government subsidies and social security programs, PMJDY has improved the efficiency and transparency of welfare delivery. Its broad influence on the number of people with bank accounts has enhanced financial literacy, saving practices, and economic inclusion in general. India's efforts to guarantee that no citizen is excluded from the official financial services ecosystem now rely heavily on PMJDY. The present paper aims to study the effectiveness of Pradhan Mantri Jan Dhan Yojana in Increasing banked population in India.