Over 540 million bank accounts opened under Pradhan Mantri Jan Dhan Yojana: Report
- The Inclusive Finance India Report 2024 said although micro, small and medium businesses contribute 30% of India's GDP and employ more than 22.94 million people, they still face a credit gap of ₹20-25 trillion.
New Delhi: A total of 540.5 million bank accounts have been opened under the government's flagship financial inclusion scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) as of November, according to the Inclusive Finance India Report 2024.
Launched on Thursday at the Global Inclusive Finance Summit 2024 in Delhi, organised by ACCESS Development Services, the report noted the accounts have a total of ₹2.37 trillion in deposits.
The scheme was launched in August 2014 to ensure people from low-income groups had access to various financial services such as savings accounts, need-based credit, remittances, insurance, pension and financial literacy. It envisages universal access to banking facilities, with at least one basic bank account for every household. Beneficiaries also get a RuPay Debit card with in-built accident insurance of ₹1 lakh. The scheme also aims to channel all government benefits to beneficiaries’ accounts using the government’s direct benefits transfer (DBT) scheme.
The report said, "This is the 10th year of the ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY), with 540.3 million bank accounts opened as of November 2024 and over ₹2.37 trillion in deposits. The ground-breaking progress on leveraging DPI has enabled ‘account inclusion’ to evolve into ‘payment inclusion’ by helping to overcome the barrier of physical access and reducing transaction costs. The role of technology platforms and fintech to support this mission through tech-led tools is already evident from the multiple models being developed and tested.”
Growth in microfinance
With the push for financial inclusion, microfinance companies added 18.1 million new clients in FY24, resulting in 26% growth in their loan portfolios. Total active loan accounts touched 161 million.
On financing for micro, small and medium businesses, the report said that although these businesses contribute 30% of India's GDP and employ more than 22.94 million people, they face a credit gap of ₹20-25 trillion. Efforts have been made to increase financing for them in the past few years through collateral-free loans but the financing has lagged, the report added. Finance minister Nirmala Sitharaman recently said such businesses would get collateral-free loans of up to ₹100 crore through a new credit-assessment model by public sector banks.
The report also noted that in October 2024 alone, a total of 16.58 billion transactions worth ₹23.50 trillion were completed through the Unified Payments Interface (UPI).
"Technology has transformed the way financial systems operate, making them accessible and efficient for all. Innovations like UPI… have democratised payments and brought the unbanked into the fold of the digital economy. Technologies such as AI (artificial intelligence) and IoT (internet of things) have redefined credit scoring and loan underwriting, enabling access for farmers, gig workers, and small enterprises previously excluded from formal finance," the report said.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsIndustryBankingOver 540 million bank accounts opened under Pradhan Mantri Jan Dhan Yojana: Report
First Published:12 Dec 2024, 03:47 PM IST
- Top Gainers
- Top Losers
- 52 Week High