THE ROLE OF PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY) IN ADVANCING FINANCIAL INCLUSION IN INDIA: PROGRESS, IMPACT AND CHALLENGES
Keywords:
PMJDY; financial inclusion; Jan Dhan accounts; RuPay; Direct Benefit Transfer; financial literacy; digital financial inclusion; women’s financial inclusion; IndiaAbstract
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is one of the key pillars
of the financial inclusion strategy in India and was launched in
August 2014. This paper aims to find the changes PMJDY is
undergoing, the extent of its reach and the challenges it is faced with
using secondary research from the Department of Financial Services,
Ministry of Finance, Government of India, Press Information Bureau
and peer-reviewed research. Strong positive numbers show formal
banking access growing significantly with PMJDY beneficiaries
standing at 59.15 crore, 45.99 crore accounts at rural/semi-urban
centres, 13.16 crore at urban/metro centres, 32.96 crore female
beneficiaries and 41.34 crore RuPay cards issued as of 26 August
2026. Deposits stood at INR 3,15,482.03 crore. The paper provides
an argument that PMJDY has shifted the focus of financial inclusion
from merely creating an account to a holistic environment of DBT,
insurance, pensions, credit and digital payment. Simultaneously,
financial education, availability of stable digital services and easy
access to paired products and last mile assistance will be the next
policy hurdles to associate access to usage. The paper concludes with
a conceptual framework and policy recommendations to advance
inclusive finance.
References
1. Department of Financial Services, Ministry of Finance, Government of India. (2026). Pradhan
Mantri Jan-Dhan Yojana: Progress Report, data as on 26 August 2026.
2. Department of Financial Services, Ministry of Finance, Government of India. (2026). Pradhan
Mantri Jan-Dhan Yojana (PMJDY): Scheme details and progress information.
3. Press Information Bureau, Government of India. (2026, August 12). Financial Inclusion in India:
Banking Every Citizen, Empowering Every Household.
4. Press Information Bureau, Government of India. (2026, July 21). Government's Financial
Inclusion Mission Continues to Foster Economic Empowerment Through Universal Banking,
Social Security and Credit Access.
5. Department of Economic Affairs, Ministry of Finance, Government of India. (2021). Annual
Report 2020–2021.
6. Kar, R. N., Tiwari, K., Bhandari, V., Kaur, A., et al. (2025). Assessing the Impact and Growth
Drivers of PMJDY: A Study of Financial Inclusion in Madhya Pradesh and Rajasthan. Millennial
Asia. https://doi.org/10.1177/09763996251346601
7. Mishra, S., Singh, A. P., & Kaur, R. (2023). Does Financial Inclusion Matter for the
Socioeconomic Development of Marginalized People? Evidence from India. Journal of Human
Values. https://doi.org/10.1177/09722629231198609
8. Singh, B. P. (2021). Financial inclusion, Pradhan Mantri Jan Dhan Yojna Scheme and economic
growth: Evidence from Indian States. Economic Notes, 50(3), e12186.
https://doi.org/10.1111/ecno.12186
9. Overcoming barriers to financial inclusion: empirical evidence from India. (2022). International
Journal of Social Economics, 49(9), 1302–1323. https://doi.org/10.1108/IJSE-04-2020-0254
10. Financial inclusion and bank stability: Evidence from the Indian banking system. (2025).
Economics Letters, 250, 112303. https://doi.org/10.1016/j.econlet.2025.112303
11. World Bank. (2025). Global Findex Database 2025.
