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According to Union minister of state for finance Dr. Bhagwat Kishanrao Karad, the number of bank accounts under the nine-year-old Pradhan Mantri Jan Dhan Yojana (PMJDY) has surpassed 500 million, with total deposits of Rs. 2 trillion, as of Tuesday.
The minister responded in writing to a query in the Rajya Sabha, stating that as of November 29, 510.4 million PMJDY accounts had been established, with deposits totaling Rs.2.08 trillion.
PMJDY introduced in 2014 to achieve financial inclusion
According to the minister, PMJDY was established as the National Mission for Financial Inclusion on August 28, 2014. It seeks to guarantee financial inclusion by providing all unbanked adults with a basic bank account and universal access to banking services.
The minister continued by stating that the PMJDY program does not have a fundamental mechanism for micro-investments like flexi-recurring deposits. On the other hand, owners of PMJDY accounts are eligible to get microinvestment benefits from their banks.
The minister added that as of November 22, 43 million PMJDY accounts have no balance because there is no minimum balance requirement for these accounts.
Private sector banks are encouraged to participate in government programs
Financial Services Secretary Vivek Joshi earlier urged private sector banks to participate more in government financial inclusion initiatives like PMJDY and Jan Suraksha, saying that doing so would help the country achieve its ambitious inclusion goals. Joshi was speaking at the 20th Global Inclusive Finance Summit.
Joshi stated that major private sector banks need to catch up since, although public sector banks actively participate, they do not. In addition to PMJDY, the Mudra Yojana and the StandUp India Scheme are further financial inclusion initiatives.
Banks are asked to focus on three areas
Additionally, Joshi stated that 18% of PMJDY accounts are not in use at the moment. Furthermore, he requested that banks and other financial organizations focus on three areas: completing KYC for inactive accounts, approving nominations for bank accounts, and enhancing cybersecurity.
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