Pradhan Mantri Jan-Dhan Yojana (PMJDY) Enhancements
The finance ministry is set to introduce new features under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) to enhance the banking experience for account holders.
Proposed Enhancements
- Issuance of chequebooks to account holders.
- Enhanced overdraft facility to improve account usage.
- Exploration of low-value credit cards for eligible holders.
Current Challenges
- Approximately 110 million inoperative PMJDY accounts as of December 2024.
- Inactivity is partly due to lack of awareness of available benefits.
- Accounts primarily used for direct benefit transfers, with limited engagement in other financial instruments.
Account Opening and Deposits
- Since its launch on August 28, 2014, PMJDY aims for universal banking access.
- In 2024, Public-Sector Banks (PSBs) opened 23.6 million accounts, achieving 79% of the 30 million target.
- Total deposits in PMJDY accounts reached ₹2.31 trillion as of August 2024, with an average deposit of ₹4,352 per account.
Bank Performance
- Uco Bank exceeded its target, achieving 110% with 1 million accounts.
- Punjab National Bank, Bank of Baroda, and State Bank of India achieved 98%, 89%, and 86% of their targets, respectively.
Strategic Goals
The government aims to reduce the number of inactive accounts and enhance financial inclusion by expanding services and increasing account engagement.
