Financial Inclusion in India and Its Challenges

JanDhan Yojana made an open-ended scheme


Mains Paper 3: Indian Economy | Inclusive growth & issues arising from it

From UPSC perspective, the following things are important:

Prelims level: Changes in the PMJDY

Mains level: Financial Inclusion



  1. The Cabinet has given its nod to turn the Pradhan Mantri JanDhan Yojana (PMJDY) into an open-ended scheme with higher insurance cover and double the overdraft (OD) facility.
  2. This is being done to continue the scheme also known as the National Mission on Financial Inclusion beyond August 28, 2018.

Whats new?

  1. The Centre has shifted its emphasis from “each household” to “all adult individuals”.
  2. The Centre has decided to make it open ended, with the OD limit increased to ₹10,000 from the existing ₹5,000.
  3. In addition, no condition will be attached for any overdraft up to ₹2,000.
  4. The age range for availing the OD facility has been revised from the 18-60 years to 18-65 years.
  5. The accident insurance cover for new RuPay cardholders has been raised to ₹2 lakh.

Success of PMJDY

  1. Under the PMJDY, 32.41 crore accounts have been opened so far, with deposits worth ₹2 crore.
  2. It has been touted as the world’s biggest scheme by institutions such as the World Bank.
  3. Nearly 53 per cent of the account holders are women.
  4. Around 59 per cent belong to rural and semi-rural regions and about 83 per cent are Aadhar-seeded.
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