Centre launches financial inclusion saturation drive across 270,000 villages, towns
The campaign, which will run from 1 July to 30 September, aims to cover all 270,000 GPs and ULBs in India. It seeks to spread awareness about the banking services available to citizens and explain how individuals can secure their financial future and that of their family members.
According to a statement from the finance ministry, launch events for the financial inclusion (FI) campaign were organised at 33 locations across the country. These events saw participation from public representatives, state government officials, SLBC conveners, bankers, and beneficiaries. In Gujarat, the Chief Minister addressed the event virtually.
During this three-month period, the campaign will focus on ensuring that Re-KYC of all savings bank account holders, wherever due, is completed in the targeted villages and towns.
Another key objective is to open bank accounts for unbanked adults under the Pradhan Mantri Jan Dhan Yojana (PMJDY). The campaign will also promote enrolment in key government-backed social security schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Atal Pension Yojana (APY).
Alongside these efforts, the campaign will educate citizens through awareness sessions on digital fraud prevention, explain how to access unclaimed deposits, and guide people through grievance redressal procedures. Officials will also assist in updating nominations in bank accounts wherever they are pending.
On the first day of the campaign, camps were conducted in 2,087 gram panchayats across the country. These received a strong response from beneficiaries, reflecting growing public interest in financial services and awareness.
The push to broaden the reach of financial inclusion schemes comes in the wake of a finance ministry review that found private banks still lag behind in servicing these schemes. Following this, the ministry has urged both private and public sector banks to step up their efforts in improving coverage and service delivery.
In addition to PMJDY, PMJJBY, PMSBY and APY, the broader campaign also seeks to raise awareness about other financial inclusion programmes, including the Pradhan Mantri Mudra Yojana (PMMY), Stand Up India, PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), and PM Vishwakarma.
Also Read | Govt to roll out credit rating for rural borrowers in six months
During a review meeting held on Monday, financial services secretary M. Nagaraju underscored the importance of fast settlement of claims under the Jansuraksha schemes. He also emphasised the need to expand banking infrastructure in rural and northeastern regions and noted the significant progress India has made in strengthening social security and deepening financial inclusion through the government's flagship initiatives.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
12 hours ago
- News18
PM Jan-Dhan Yojana Is India's Biggest Socio-Economic Reform
Over the past decade, it has revolutionised banking access, enabled seamless government transfers, empowered marginalised communities, and built India's digital financial backbone. Launched on August 28, 2014, by Prime Minister Narendra Modi, the Pradhan Mantri Jan Dhan Yojana (PMJDY) has emerged as a cornerstone of India's socio-economic transformation, redefining financial inclusion within the country and setting a global benchmark. Described by PM Modi as a 'festival to celebrate the liberation of the poor from a vicious cycle," PMJDY aimed to bring every unbanked household into the formal financial system. Over the past decade, it has achieved unprecedented success, revolutionising access to banking, enabling seamless government transfers, empowering marginalised communities, and laying the foundation for India's digital financial ecosystem. The initiative's positive impact has extended way beyond initial expectations and provides an apt benchmark for the world in financial inclusion. A Global Benchmark for Financial Inclusion PMJDY's ambition to provide universal banking access was audacious in a country where, in 2014, more than half of households lacked access to formal banking. The scheme's design -zero-balance accounts, minimal paperwork, and free RuPay debit cards with accident insurance – made it accessible to the poorest. Its global significance lies in its scale and speed. A 2023 World Bank G20 report noted that India achieved its financial inclusion goals in just six years, a process that would have taken 47 years without its advanced digital infrastructure. By 2024, India surpassed China in financial inclusion metrics, with mobile and internet banking transactions soaring from 183 per 1,000 adults in 2015 to 13,615 in 2020. The scheme's focus on inclusivity – targeting women, rural populations, and marginalised communities – set a new standard. With 55.6 per cent of accounts held by women (29.56 crore out of 53.13 crore) and 66.6 per cent in rural/semi-urban areas (35.37 crore), PMJDY bridged gender and regional disparities. Its consent-based integration with Aadhaar and mobile numbers created a robust framework for financial access, inspiring countries in Africa and South Asia to adopt similar models through India's Global DPI Repository. A Decade of Remarkable Performance (2015–2025) PMJDY's performance over the past ten years is a testament to its transformative impact. As of August 2024, the scheme has opened 53.13 crore accounts, with cumulative deposits exceeding Rs 2.3 lakh crore. By July 2025, this figure grew to 55.44 crore accounts with deposits surpassing Rs 2.5 lakh crore, according to RBI data. Additionally, 36 crore RuPay debit cards have been issued, each with a Rs 2 lakh accident insurance cover, at no cost to account holders. The growth trajectory is staggering. In August 2015, PMJDY had 17.9 crore accounts; by August 2023, this number had tripled to 50.14 crore. Only 8.2 per cent of accounts are zero-balance, indicating active usage, with 81.2 per cent operative as of August 2022. Deposits have grown 7.6 times between 2015 and 2022, reflecting increased financial engagement. The scheme's outreach to rural areas (67 per cent of accounts) and women (55.5 per cent) underscores its inclusivity. Digital transactions have also skyrocketed. From 1,471 crore digital transactions in FY 2017-18, the figure rose to 11,394 crore by FY 2022-23, driven by RuPay cards and UPI. RuPay card transactions at PoS and e-commerce increased from 67 crore in FY 2017-18 to 126 crore in FY 2022-23, while UPI transactions surged from 92 crore to 8,371 crore in the same period. PM Modi's Political Willpower: Driving the Vision PMJDY's success is inseparable from PM Narendra Modi's unwavering political commitment. When launched, sceptics questioned its feasibility, given India's vast unbanked population and logistical challenges. PM Modi's vision was to create an inclusive financial ecosystem, breaking the cycle of poverty perpetuated by informal lending and lack of access. His government's hands-on approach – leveraging technology, simplifying KYC norms, and deploying Business Correspondents (Bank Mitras) – ensured rapid implementation. The scheme's extension beyond its initial 2018 end date, with enhanced features like doubled overdraft limits (Rs 5,000 to Rs 10,000) and increased insurance coverage (Rs 1 lakh to Rs 2 lakh), reflects Modi's resolve to adapt and sustain the program. PM Modi's emphasis on people-centric governance is evident in his public statements. On the scheme's 10th anniversary, he wrote, 'Jan Dhan Yojana has been paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and marginalized communities." His leadership ensured that banks, RBI, and NPCI collaborated seamlessly, with the Jan Dhan Darshak App enhancing accessibility by mapping banking touchpoints. The JAM Trinity and Seamless DBT: A Paradigm Shift PMJDY laid the foundation for the JAM Trinity (Jan Dhan, Aadhaar, Mobile), a revolutionary framework that transformed government welfare delivery. Unlike the era when former Prime Minister Rajiv Gandhi lamented that only 15 paise of every rupee reached the poor due to systemic leakages, the JAM Trinity ensured near-100 per cent efficiency in Direct Benefit Transfers (DBT). By linking Jan Dhan accounts with Aadhaar and mobile numbers, the government eliminated middlemen, ensuring funds reached beneficiaries directly. Since its inception, DBT via PMJDY has facilitated transfers worth Rs 39 lakh crore, covering schemes like PM-KISAN, MGNREGA, and COVID-19 relief. During the 2020 lockdown, over 20 crore women's PMJDY accounts received Rs 500 monthly ex-gratia payments within 10 days, showcasing the system's efficiency. The Economic Survey 2022-23 credits the JAM Trinity with saving India during the pandemic by enabling rapid deployment of financial aid and the CoWIN vaccination platform. Enabling UPI's Massive Success PMJDY's integration with digital infrastructure catalysed the meteoric rise of the Unified Payments Interface (UPI), making India a global leader in digital payments. With over 40% of the world's real-time digital transactions occurring in India, UPI's success is deeply tied to PMJDY's widespread account penetration. The issuance of 33.98 crore RuPay debit cards and the deployment of 79.61 lakh PoS/mPoS machines by June 2022 facilitated digital adoption among the poorest. UPI transactions grew from 1.79 crore in FY 2016-17 to 4,596 crore in FY 2021-22, with PMJDY account holders at the forefront. The scheme's focus on financial literacy and simplified banking access empowered even rural and semi-urban populations to embrace UPI, transforming small vendors, farmers, and labourers into active participants in the digital economy. The Jan Dhan Darshak App further supported this by connecting users to banking services, reinforcing UPI's accessibility. Enabler for Other Schemes PMJDY has been a critical enabler for flagship schemes like PM-KISAN Samman Nidhi and PM Awas Yojana. By providing bank accounts to the unbanked, it ensured that financial assistance under PM-KISAN – Rs 6,000 annually to farmers – reached beneficiaries directly. Similarly, PM Awas Yojana's housing subsidies were seamlessly transferred to PMJDY accounts, enabling millions to access affordable housing. Other schemes, like PM SVANidhi for street vendors and Ayushman Bharat for healthcare, also leveraged PMJDY's infrastructure, amplifying their reach and impact. The scheme's role in social security programs like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) further underscores its versatility. By linking these schemes to PMJDY accounts, the government ensured that insurance and pension benefits reached the marginalised, enhancing financial security. Minimising Poverty: A Socio-Economic Game-Changer PMJDY's role in poverty reduction is profound. By integrating 55.44 crore people into the formal banking system, it provided access to savings, credit, and insurance, breaking the cycle of predatory lending. A 2021 SBI report noted that states with higher PMJDY account balances saw reduced crime rates and lower alcohol and tobacco consumption, indicating broader social benefits. The scheme's emphasis on women's empowerment – 30 crore women account holders – has fostered economic independence, with women-led MSMEs benefiting significantly through platforms like GeM and ONDC. The linkage with DBT has ensured that welfare funds reach the poorest, directly impacting their livelihoods. For instance, PM-KISAN transfers have supported rural economies, while PM Awas Yojana has improved living standards. The scheme's rural focus (67 per cent of accounts) has reduced regional inequalities, aligning with the government's goal of inclusive growth. top videos View all The Pradhan Mantri Jan Dhan Yojana stands as India's most transformative socio-economic reform, redefining financial inclusion on a global scale. Its data-driven success – 53.13 crore accounts, ₹2.3 lakh crore in deposits, and 36 crore RuPay cards—reflects its unparalleled reach. PM Narendra Modi's political willpower turned scepticism into reality, creating a robust ecosystem through the JAM Trinity and UPI, which eliminated leakages and empowered the poorest. By enabling schemes like PM-KISAN and PM Awas Yojana, PMJDY has catalysed poverty reduction and inclusive growth. As Modi stated, it 'personifies dignity, empowerment, and the opportunity to participate in the economic life of the nation." With strong foundations, PMJDY is poised to drive India toward a Viksit Bharat, setting a model for the world to follow. The writer is a well-known author and national spokesperson of BJP. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. tags : jan dhan yojana pradhan mantri jan dhan yojana view comments Location : New Delhi, India, India First Published: August 12, 2025, 10:02 IST News opinion Opinion | PM Jan-Dhan Yojana Is India's Biggest Socio-Economic Reform Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
&w=3840&q=100)
Business Standard
a day ago
- Business Standard
RBI leaves it to banks to decide minimum balance rule:What it means for you
After ICICI hiked minimum balance for new accounts, RBI says banks can set their own rules, making it crucial for customers to compare terms before opening a savings account. New Delhi Reserve Bank of India (RBI) Governor Sanjay Malhotra clarified on Monday that banks are free to decide their minimum account balance requirements for savings accounts as it does not fall under 'regulatory domain'. Speaking informally to journalists on the sidelines of a financial inclusion saturation drive in Mehsana district, Gujarat, Malhotra said, 'RBI has left it to the banks to decide on the minimum balance. Every bank has its own minimum balance requirement. This is not in the RBI's regulatory domain.' Effective 1 August 2025, ICICI Bank has raised the minimum balance threshold for new customers by five times: -Urban/metro branches: From Rs 10,000 to Rs 50,000 -Semi-urban branches: From Rs 5,000 to Rs 25,000 -Rural branches: From Rs 2,000 to Rs 10,000 The changes apply only to accounts opened on or after 1 August. Existing customers continue under the earlier limits unless the bank announces otherwise. Variations across banks Malhotra noted that there is no uniform standard: -Some banks keep the minimum balance as low as Rs 2,000. -Others set it at Rs 10,000 or more. Several public sector banks (PSBs) have waived the requirement entirely for certain account types. Accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) and basic savings bank deposit accounts (BSBDAs) are exempt from MAB rules, ensuring financial access for low-income households. Why does this matter to you? For customers, the MAB is the average balance that must be maintained during the month. Falling short typically attracts non-maintenance charges, which can vary by bank and location. If you are opening a new account: -Check the bank's MAB rules before signing up. -Compare across lenders to find one that fits your budget and usage. -Consider PSBs or BSBDAs if you prefer a zero-balance option. With the RBI leaving it to market forces, banks will continue to set minimum balance thresholds in line with their business models, making it important for consumers to shop around and avoid avoidable penalties.
New Indian Express
3 days ago
- New Indian Express
10 crore Jan Dhan accounts need re-KYC: RBI
CHENNAI: Reserve Bank of India deputy governor Swaminathan Janakiraman said the number of accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) since its launch in 2014-15 has reached 55 crore, but nearly 10 crore of them require mandatory Know Your Customer (KYC) updates after a decade in operation. Speaking at Indian Bank's 2,664th 'Financial Inclusion Saturation Programme' at Thirukandalam in Tiruvallur, Janakiraman warned that delays in re-KYC could inconvenience account holders and heighten the risk of misuse. 'This will create trust between you and the banks and ensure your account cannot be illegally used. Your hard-earned money and government scheme benefits will remain safe,' he said. The Union government and RBI have launched a nationwide drive to update records in every gram panchayat, with public sector banks treating the campaign - running from July 1 to September 30 - as a 'festival of financial inclusion.' The deputy governor linked the push to broader changes in India's financial landscape, from Aadhaar-linked accounts to the rapid adoption of mobile payments. At the Saturday's event, attended by more than 2,000 residents, re-KYC was completed for 350 people, and dozens were enrolled in social security schemes. Indian Bank MD and CEO Binod Kumar said the bank remained committed to 'bringing banking to the doorstep of every citizen', adding that while the credit-deposit (CD) ratio in most states is below 100%, it exceeds 160% in Tamil Nadu. 'Even our bank's CD ratio stands at 100%,' he noted. Tiruvallur collector M Prathap said a bank account serves as an identity, just like an Aadhaar card, and urged people to update their KYC details. He added that the state is holding camps to help beneficiaries - from old-age pensioners to women's self-help groups - update their records and access funds. IOB executive director Joydeep Dutta Roy reported that 9.5 lakh people in Tamil Nadu have been covered under the three-month programme so far, with 1.8 lakh completing re-KYC.
