As a result of the many initiatives by the Government, the share of operative Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts has increased from 60.38% in March’17 to 85.70% in November’21. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

As informed by banks, the Minister stated that state-wise number of accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) along with RuPay Debit Cards issued is ANNEXED.

Whether a large number of accounts are dormant/inoperative, the Minister stated that as per Reserve Bank of India (RBI) guidelines dated 18.02.2009, a savings account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years.

In this regard, the Minister stated, RBI has advised Financial Literacy Centres (FLCs) and rural branches of banks to conduct outdoor financial literacy camps for customers in collaboration with ground level stakeholders at the District/ panchayat /village level. They also conduct specific camps for target audience like farmers, small entrepreneurs, Self Help Groups, senior citizens etc. including women. The Centres for Financial Literacy project of the RBI also impart financial education among adults. In addition, banks in general organise camps, to create awareness about the banking habits including the benefits of keeping the account active.

On the question whether the beneficiaries can avail formal credit under the PMJDY, the Minister stated that the beneficiaries can avail overdraft facility upto ₹ 10,000 after fulfillment of certain minimum conditions. In addition, they can also avail credit from banks as per the extant guidelines/policy.

Overdraft facility for PMJDY account holders enables formal access to bank credit after meeting minimum conditions. The share of operative PMJDY accounts increased substantially to 85.70% by November 2021. RBI defines a savings account as inoperative/dormant after two years of no transactions and has directed Financial Literacy Centres and rural branches to run outreach and targeted financial education to activate accounts. PMJDY beneficiaries can access an overdraft facility after satisfying minimum conditions and may obtain further bank credit under prevailing guidelines.