Only a couple of decades earlier, banking and financial services were largely inaccessible to the economically marginalised sections of society. According to the World Bank data, in 2011, only 35% of Indians had bank accounts while 65% (approximately 557 million) were unbanked and, therefore, excluded from formal access to credit and payment platforms.

Over the last decade, the PMJDY has been a key driver in encouraging people to open bank accounts and connect them with the formal banking ecosystem, and avail financial entitlements. The scheme offers access to essential financial services, including savings accounts, remittances, credit, insurance, and pension. It allows unbanked individuals to open a basic savings bank deposit account (BSBDA) at any bank branch or Business Correspondent (BC) outlet, with benefits like zero balance, interest on deposits, a RuPay debit card, and add-on benefits like accident insurance cover of ₹2 lakh for account holders. PMJDY’s success is evident – the total bank account holders rose from 125.47 million in January 2015 to 545.8 million in January 2025.

Digital integration is at the heart of the financial inclusion journey in India. Digitisation and online services have minimised the need for establishing physical infrastructure. This has been a revolutionary leap especially for those in remote and rural areas, and for those who cannot access the bank branches because of proximity.

The other initiative that streamlined and supported the digitisation is Jan Dhan Aadhar and Mobile JAM), the linking of bank accounts opened under Jan Dhan scheme with Aadhar cards and mobile phones has facilitated the process of direct benefit transfers (DBTs) including the processing of payments under government schemes (like the Mahatma Gandhi National Rural Employment Guarantee Act) and other facilities directly to the bank account of the beneficiaries/customers.

The journey of PMJDY and the adoption of UPI have revolutionised financial inclusion in India. PMJDY has provided millions with access to banking services, while UPI has made digital financial transactions seamless and accessible. Even in rural areas and for the smallest of entrepreneurs today like the roadside vegetable sellers or panipuri vendors display a QR code that can be scanned to make a payment. It is telling that UPI transactions reached 16.99 billion in January 2025.

Together, they have empowered individuals by enabling cashless transactions, promoting financial literacy, and ensuring the efficient transfer of subsidies through DBT. This synergy has strengthened India’s digital economy, fostering economic inclusion, reducing dependency on cash, and encouraging small businesses and individuals to participate in the formal financial system.

These platforms have enabled financial empowerment by reducing transaction costs, increasing economic participation, and providing vulnerable populations with robust digital financial infrastructure.

While PMJDY has created a digital ecosystem and propelled financial inclusion, there are a few areas of concern that need to be addressed.

One of the primary hurdles has been the dormant bank accounts that have not been operated by the account owners. While the percentage of such accounts in public sector banks dropped from 39.62% in March 2017 to 20.91% in November 2024, there is still a substantial number of accounts that still see no customer-induced transactions.

There is still a lack of financial literacy and awareness about the full range of benefits offered under PMJDY accounts. Despite concerted efforts, many account holders, especially women remain unaware of the full range of benefits offered under PMJDY. For instance, a report by Women’s World Banking revealed that 97% of women account holders did not know about the overdraft facility that these accounts offer. This underscores the necessity of targeted awareness campaigns, particularly tailored for marginalised groups.

Strengthening the PMJDY ecosystem involves addressing these issues through a multi-pronged approach. In terms of product design, financial products can facilitate access to key requirements of marginalised groups. To increase awareness and reduce dormant accounts, a higher number of banking correspondents can be trained by banks. In this regard, training people from diverse communities can go a long way in raising awareness about targeted products and services. Mobile-based educational campaigns, particularly those warning people against common scams, can help account holders exercise caution during online transactions.

The National Strategy for Financial Inclusion in India by the Reserve Bank of India, under which Centre for Financial Literacy (CFL) has been established in each block in the country to provide financial literacy focusing banking services and linkages with the banking services has been the steadfast initiative.

Over the past decade, PMJDY has not only redefined financial inclusion in India but has also laid the groundwork for a thriving digital finance ecosystem. While challenges remain, the scheme’s achievements offer a blueprint for inclusive growth. By addressing existing gaps, the digital ecosystem created by the scheme can ensure universal coverage and make way for empowered communities and individuals. Now the world can learn from India.

This article is authored by Vipin Sharma, CEO, ACCESS Development Services.