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Jan Dhan scheme speedily narrows banking gap in India
May 18, 2023
India has dealt with the problem of unbanked adults effectively as it has managed to get opened over 489.3 million new banking accounts in the past eight to nine years.
Interestingly, 56 per cent of these beneficiaries are women while 67 per cent are from rural and semi-urban areas. The scheme, named PM Jan Dhan Yojana (PMJDY), has helped the Government of India make inroads in rural areas and bring underprivileged sections of society under the banking net.
The PMJDY was launched in September 2014. The financial inclusion mission received a huge response from across the country, thanks to favourable terms and conditions and extensive benefits. Thousands of people thronged to different banks to open saving accounts under the scheme that transformed the banking sector in India. It made it to the Guinness World Records for facilitating the opening of over 18 million accounts in just a week.
The Jan Dhan accounts held over ₹1.98 trillion (roughly $24 billion) in May 2023.
These accounts are linked to several social welfare schemes. The Government of India has succeeded in reaching out to the poorest of the poor, especially during disasters. The PMJDY bank accounts proved very helpful when Covid-19 pandemic induced lockdowns forced people to stay indoors, which caused loss of livelihoods. The government released funds worth ₹6.8 billion (roughly $8.3 million) in the PMJDY accounts. This allowed the Covid-affected, poor and vulnerable people to buy essential commodities and services.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/