23% of total 56.04 crore PM Jan Dhan accounts inoperative

Context:

• Scheme: Pradhan Mantri Jan Dhan Yojana (PMJDY) – financial inclusion initiative launched in 2014 to provide universal access to banking, including savings & deposit accounts, credit, insurance, and pensions.
• Current Status: Out of 56.04 crore PMJDY accounts (as of July 31, 2025), 13.04 crore accounts (23%) are inoperative/dormant, per Minister of State for Finance Pankaj Chaudhary.
• State-wise Distribution of Inoperative Accounts:
  • Uttar Pradesh: 2.75 crore
  • Bihar: 1.39 crore
  • Madhya Pradesh: 1.07 crore

Definition:

• As per RBI guidelines (Feb 18, 2009), a savings account is considered inoperative if no transactions occur for over two years.

Government Measures:

• DBT Continuity: Benefits under Direct Benefit Transfer continue to be credited to inactive accounts.
• Account Holder Communication: Banks inform account holders quarterly via letters, email, or SMS.
• Campaigns for Activation:
  • Gram Panchayat level Saturation Campaign (1 July – 30 Sept 2025) includes Re-KYC of inactive PMJDY accounts.
  • Other promotional drives for enrolment and activation.
• UPI Incentives: Govt. provided ₹8,730 crore (FY 2021–22 to FY 2024–25) to ensure UPI service continuity; no proposal to impose transaction charges currently.

Public Sector Banks Capital Raising:

• PSBs raise capital via equity and Basel III-compliant AT-1/AT-2 bonds.
• Total Capital Raised (FY2022-23 to FY2024-25): ₹1,53,978 crore
  • FY2022-23: ₹44,942 crore
  • FY2023-24: ₹57,380 crore
  • FY2024-25: ₹51,656 crore
• Purpose: Support credit growth, regulatory compliance, public shareholding, replenish bonds, strengthen capital buffer.

Gold Loans & NPAs:

• Gross NPA ratio in gold loans:
  • SCBs: 0.20% (Mar 2023) → 0.22% (Mar 2025)
  • Upper/Mid-layer NBFCs: 1.21% → 2.14%
• RBI Ombudsman received 188 complaints on gold loans in FY 2024–25.

Crypto Assets:

• RBI clarifies that cryptocurrencies/cryptoassets are not under its regulatory domain.

Significance:

• Financial Inclusion: Highlights gaps in the activation and utilization of PMJDY accounts despite large coverage.
• State Focus: High inoperative numbers in Uttar Pradesh, Bihar, Madhya Pradesh indicate need for focused financial literacy & outreach.
• Digital Payments & UPI: Govt. incentives ensure continuity, boosting trust in digital financial ecosystem.
• Banking Sector Strength: Capital raising by PSBs shows robust financial health to support credit expansion and regulatory compliance.
• Monitoring & Governance: Re-KYC campaigns and Ombudsman complaints reflect structured oversight
  
  Updated : 18/08/25 | 04:28 PM IST | The Hindu