Jan Dhan Scheme Witnesses Record Growth in Total Balance During FY23

In the financial year that ended on March 31, 2023, there was a significant increase in the total balance of basic bank accounts that are part of the Pradhan Mantri Jan Dhan Yojana (PMJDY), reaching a record surge of ₹50,000 crore. This brought the total balance to ₹1.99 lakh crore at the end of FY23, compared to the previous financial year where it was ₹1.49 lakh crore. Additionally, 5 crore new accounts were added to the scheme.

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By the end of the last fiscal year, the total number of beneficiaries had reached 48.65 crore, which is an increase from 45 crore beneficiaries in the previous financial year. Out of the total beneficiaries, over 27 crore were women. A senior official from SBI stated that this is the highest year-on-year increase in the total balances of these accounts, which suggests that the government and beneficiaries are using them for various purposes. The official also mentioned that SBI is prioritizing the expansion of the scheme’s scope.

The main force behind the scheme are the public sector banks, which hold ₹1.55-lakh crore in deposits, followed by Regional Rural Banks (RRBs) with ₹38,832 crore, while the remaining deposits are with private sector banks. Examining the data from the last five years, it is evident that almost a quarter of the current total balance was accumulated in the year 2022-23.

A senior analyst from a private ratings agency stated that this is a significant development, and the growth in the total balance must have been fueled by a robust rural economy that gained momentum in the last fiscal year.

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The Jan Dhan scheme provides a RuPay card that includes an accident insurance cover of ₹1 lakh, which is valid for up to 90 days after the cardholder successfully conducts a financial or non-financial transaction at a merchant establishment, ATM, or e-commerce platform.

Although the pace of issuing RuPay cards has slowed down, with only 33 crore cards issued out of approximately 49 crore account holders, the RBI reports that only about 8% of PMJDY accounts have a zero balance. On average, the balance in these accounts is more than ₹2,400.