Synopsis: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed ten years, marking a decade of significant impact on financial inclusion in India. Launched in 2014, the scheme has substantially increased bank account ownership among women and rural populations, reduced the gender gap in financial services, and integrated digital infrastructure to boost financial access.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) marked its ten-year anniversary this Wednesday, celebrating a decade of profound impact on financial inclusion across India.
Launched in 2014, the scheme has been instrumental in revolutionizing access to financial services for millions, especially women and those in rural areas.
Impact on Women's Financial Inclusion:
Since its inception, the PMJDY has been a cornerstone in the drive towards financial inclusion, particularly for women.
The program has facilitated a significant increase in bank account ownership among Indian women, soaring from 26% in 2011 to 78% in 2021.
Of the 53.13 crore Jan Dhan accounts opened under the scheme, over 30 crore are owned by women, highlighting the program's success in empowering them financially.
Bridging the Urban-Rural Divide:
The PMJDY has also played a crucial role in reducing the rural-urban divide in financial services.
Currently, 35 crore Jan Dhan accounts are held in rural or semi-urban areas.
The percentage of households with access to a bank or post office account is nearly equal in both urban and rural regions, standing at 95% and 96%, respectively.
This parity underscores the scheme's effectiveness in making financial services accessible to all, regardless of location.
Reducing the Gender Gap in Financial Services:
The program has made remarkable strides in bridging the gender gap in access to financial services.
The gap, which was 20% in 2011, narrowed to just 6% by 2017, surpassing the global average reduction of 9%.
This achievement reflects the PMJDY's success in ensuring that financial services are accessible to everyone, regardless of gender.
Additional Benefits and Technological Integration:
As of August 2024, over 36.13 crore RuPay debit cards have been issued to Jan Dhan account holders, free of cost.
These cards offer significant benefits, including an insurance cover of Rs. 2 lakh and an overdraft facility of up to Rs. 10,000.
The scheme's integration with digital public infrastructure, through the JAM trinity (Jan Dhan, Aadhaar, and Mobile), has propelled financial inclusion rates from 25% in 2008 to over 80% of adults within the last six years.
Foundation for Broader Economic Initiatives:
The PMJDY has laid the groundwork for numerous other people-centric economic initiatives.
It has facilitated direct benefit transfers, COVID-19 financial aid, PM-KISAN payments, increased wages under MGNREGA, and broader life and health insurance coverage.
A 2021 SBI report observed that states with higher PMJDY account balances experienced declines in crime rates and reduced alcohol and tobacco consumption, indicating the program's positive social impact.
Global Recognition and Achievements:
The Jan Dhan Yojana has received international acclaim for its transformative impact on financial inclusion.
A 2023 G20 report by the World Bank highlighted that India achieved its financial inclusion goals within just six years, a feat that would have taken 47 years without its advanced digital infrastructure.
India has surpassed China in several financial inclusion metrics, with mobile and internet banking transactions rising to 13,615 per 1,000 adults in 2020, up from 183 in 2015.
Additionally, the number of bank branches per 100,000 adults has increased to 14.7, exceeding those in Germany, China, and South Africa.
In conclusion, over the past decade, the Pradhan Mantri Jan Dhan Yojana has played a transformative role in advancing financial inclusion across India.
By providing widespread access to financial services, particularly for women and rural populations, the scheme has helped bridge socio-economic gaps and foster greater economic equality.
Its integration with digital infrastructure has not only accelerated financial inclusion but also laid a strong foundation for future growth and development.
Disclaimer: This article is for informational purposes only and should not be considered as financial or investment advice. Readers are encouraged to consult with a qualified financial advisor before making any financial decisions.
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