- Why in news
- On 28 August 2026, Union Minister Annpurna Devi marked 12 years of PMJDY and shared its figures: over 59 crore accounts, 56% held by women.
- What it is
- PMJDY is the National Mission on Financial Inclusion, launched on 28 August 2014. It offers every unbanked adult a basic bank account with no minimum balance requirement. It forms the base of the JAM trinity (Jan Dhan, Aadhaar, Mobile) used for direct benefit transfers.
- Accounts opened
- More than 59 crore Jan-Dhan accounts have been opened.
- Share of women
- 56% of accounts belong to women.
- Rural reach
- 78% of accounts are in villages and small towns.
- Deposits and transfers
- Deposits in these accounts have crossed Rs 3.1 lakh crore. Rs 53 lakh crore has been transferred to beneficiaries through the JAM trinity.
- Launch
- PMJDY was launched in August 2014, so 2026 marks 12 years.
- Account terms
- Basic account with no minimum balance and no maintenance charges for every unbanked adult.
- JAM trinity
- Jan Dhan, Aadhaar and Mobile together enable direct delivery of benefits without intermediaries.
Don’t confuse with PMJDY vs JAM trinity: PMJDY is the account scheme. JAM is the combination of Jan Dhan accounts, Aadhaar identity and mobile numbers used to deliver benefits.
Don’t confuse with PMJDY vs Jan Suraksha schemes: PMJDY gives basic bank accounts; PMJJBY and PMSBY are separate insurance schemes linked to bank accounts.
Don’t confuse with RuPay card vs PMJDY: RuPay is the NPCI payment network; PMJDY is the account scheme that issues RuPay cards.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Brought crores of poor households, especially women and rural families, into formal banking.
- Gave the base for direct benefit transfers, reducing leakage.
- Brought about 59 crore people into the formal banking system, with women and rural areas well represented.
- Enabled direct benefit transfers through JAM, cutting leakages and intermediaries.
Problems
- Many accounts stay dormant or have low balances, so inclusion is not the same as active use.
- Last-mile access, digital literacy and banking agent reach remain uneven.
- Many accounts stay dormant or have low usage despite high numbers.
- Last-mile access depends on business correspondents and connectivity.
Way forward
- Push active use of accounts through credit, insurance, pensions and digital payments.
- Strengthen banking correspondents and financial literacy in remote areas.
- Push active use through digital payments, credit and insurance linkages.
- Strengthen financial literacy and grievance redress for account holders.
Put in your answer
Account coverage: Over 59 crore accounts, 56% held by women and 78% in villages and small towns.
DBT through JAM: Rs 53 lakh crore has been transferred directly to beneficiaries via JAM.
Average deposit: Average deposit per account rose 3.4 times in 12 years, indicating more savings and use.
- 2016Mains GS3 · Q3Whether PMJDY is necessary to bring unbanked into institutional finance, with arguments
- 2026Mains GS3 · Q2Examine financial inclusion as part of social and economic inclusion; RBI's FI-Index usefulness
- 2022Mains GS2 · Q8Comment on DBT scheme as progressive reform and its limitations
- 2022Mains GS3 · Q2Is inclusive growth possible under market economy; significance of financial inclusion
- 2015Prelims Q1Which option describes the purpose of the Pradhan Mantri Jan-Dhan Yojana
- 2026Prelims Q88Identify the three key sub-indices of RBI's Financial Inclusion Index
- 2016Prelims Q4Which statements about payment banks promoting financial inclusion are correct
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements about the Pradhan Mantri Jan Dhan Yojana (PMJDY): 1. It was launched in August 2014 as the National Mission on Financial Inclusion. 2. A PMJDY account requires a minimum balance of ₹1,000 to be maintained. 3. Each account comes with a free RuPay debit card carrying accident insurance cover of ₹2 lakh. 4. The overdraft facility for account holders is up to ₹50,000. 5. The 'J', 'A' and 'M' in the JAM trinity stand for Jan Dhan, Aadhaar and Mobile. 6. A majority of PMJDY accounts are held by men and are located in urban areas.
How many of the statements given above are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.PMJDY was launched in August 2014 as the National Mission on Financial Inclusion.
True. Launched 28 August 2014 as the National Mission on Financial Inclusion.
2.Each PMJDY account comes with a free RuPay debit card carrying accident insurance cover of ₹2 lakh.
True. The free RuPay card carries ₹2 lakh accident cover.
3.In the JAM trinity, the 'J', 'A' and 'M' stand for Jan Dhan, Aadhaar and Mobile.
True. JAM = Jan Dhan–Aadhaar–Mobile.
4.Most PMJDY accounts are held by men, and a majority are in urban areas.
False. About 55.7% of account holders are women and 77.8% of accounts are in rural and semi-urban areas.
5.PMJDY accounts have helped extend PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana cover to unorganised sector workers.
True. PMJDY accounts support the Jan Suraksha insurance schemes.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.