How PM Jan Dhan Yojana Transformed Financial Inclusion in India
The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, has significantly boosted financial inclusion in India, especially for women. Over 80% of Indian women now have bank accounts, up from 26% in 2011. The scheme has also reduced the rural-urban divide and gender gap in financial services.
With over 36 crore RuPay debit cards issued, the initiative has facilitated various economic benefits and social improvements, earning global praise for its rapid success.
Key Achievements
- 80% of Indian women now have bank accounts.
- Rural-urban divide in bank accounts nearly eliminated.
- Gender gap in financial services reduced from 20% to 6%.
- Over 36 crore RuPay debit cards issued with benefits like insurance and overdraft.
- Financial inclusion rate increased from 25% in 2008 to over 80% in 2024.
Global Recognition
In 2023, a G20 report by the World Bank revealed that India achieved its financial inclusion goals in just 6 years, a feat that would have taken 47 years without its advanced Digital Public Infrastructure. India has surpassed China in financial inclusion metrics, according to a 2021 SBI report.
Doubts Revealed
PM Jan Dhan Yojana -: PM Jan Dhan Yojana is a government program in India that helps people, especially those who are poor, to open bank accounts easily. It was started in 2014 by the Prime Minister.
Financial Inclusion -: Financial inclusion means making sure everyone has access to useful and affordable financial services, like bank accounts, loans, and insurance. It helps people manage their money better and plan for the future.
Pradhan Mantri -: Pradhan Mantri means Prime Minister in Hindi. The Prime Minister is the head of the government in India.
2014 -: 2014 is the year when the PM Jan Dhan Yojana was started. It is important because it marks the beginning of this big change in how people use banks in India.
80% of Indian women -: This means that out of every 100 women in India, 80 now have bank accounts. This is a big improvement from before when only 26 out of 100 women had bank accounts.
Rural-Urban Divide -: The rural-urban divide refers to the differences in living conditions and access to services between people living in villages (rural areas) and cities (urban areas). The PM Jan Dhan Yojana helps reduce these differences.
Gender Gap -: The gender gap is the difference in opportunities and access to services between men and women. The PM Jan Dhan Yojana helps reduce this gap by making it easier for women to have bank accounts.
36 crore -: 36 crore is a way of saying 360 million. It shows how many RuPay debit cards have been given to people under the PM Jan Dhan Yojana.
RuPay debit cards -: RuPay debit cards are like special bank cards that people can use to take out money or buy things. They are made in India and are part of the PM Jan Dhan Yojana.
Global praise -: Global praise means that people and organizations around the world are saying good things about the PM Jan Dhan Yojana. They think it is a very successful program.
