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India's Financial Inclusion Drive Empowers Millions, Especially Women

India's Pradhan Mantri Jan Dhan Yojana has opened over 530 million bank accounts, with 56% held by women, significantly bridging the gender gap in financial access. The initiative, supported by a vast network of banking correspondents, has mobilized deposits of Rs 2.29 trillion. India now leads in digital transactions, with UPI processing over 21 billion transactions in December 2024 alone. Looking ahead, authorities aim to strengthen financial literacy, cybersecurity, and ensure inclusion leads to long-term security through credit and insurance.

Key Points: India's Financial Inclusion Transforms Lives, Says DFS Secretary

  • 530M+ PMJDY accounts opened
  • 56% accounts held by women
  • UPI leads global digital transactions
  • 563M+ Mudra loans sanctioned
  • Focus on literacy & security next
2 min read

India's financial inclusion transforms lives of millions: DFS Secretary

Over 530 million bank accounts opened under PMJDY, empowering women and rural India. UPI leads global digital payments.

"Apart from the numbers, what has changed... is the way women actually started perceiving themselves as equal stakeholders - M Nagaraju"

New Delhi, January 13

India's ambitious financial inclusion drive has fundamentally transformed the economic landscape for hundreds of millions of citizens, particularly women and rural populations, a senior government official said at the Global Inclusive Finance Summit.

M Nagaraju, Secretary of the Department of Financial Services, described the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) on August 28, 2014, as "one of the most transformative days in India's history."

Speaking at the summit, Nagaraju revealed that the scheme has opened more than 530 million bank accounts, with 72 per cent in rural and semi-urban areas. Women now hold 56 per cent of these accounts, effectively eliminating the gender gap in account ownership.

"Apart from the numbers, what has changed in the rural areas is the way women actually started perceiving themselves as equal stakeholders in the economic development of the family," Nagaraju said. "It has given a lot of empowerment to the women."

Deposits in PMJDY accounts have surged to Rs 2.29 trillion, making it the country's largest financial inclusion initiative.

The program operates through 6 lakhs banking correspondents who travel to villages and neighbourhoods to provide banking services.

India now leads the world in digital transactions, accounting for approximately 50 per cent of global real-time payments.

The Unified Payments Interface (UPI) processed more than 21 billion transactions in December 2024, outpacing card transactions by 101 per cent.

The government has leveraged this digital infrastructure to extend credit and insurance coverage to previously underserved populations. Under the Mudra scheme, over 563.2 million loans totalling nearly Rs 38 lakh crore have been sanctioned since April 2015, with 67 per cent going to women entrepreneurs.

Despite these achievements, Nagaraju identified several areas requiring improvement.

He emphasised the need to update Know Your Customer (KYC) details for accounts opened during the initial phase, strengthen financial literacy programs, and enhance cybersecurity measures.

Looking forward, Nagaraju outlined a three-pillar vision: ensuring financial inclusion leads to financial literacy, which in turn creates financial security through credit access, risk coverage, and pension provisions.

"If these three are able to be embedded in the financial inclusion agenda, the country is going to be much safer, much strengthened and much confident to march to the next century," he concluded.

- ANI

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Reader Comments

R
Rohit P
The numbers are impressive, no doubt. 530 million accounts is massive. But the real test is usage beyond just receiving subsidies. We need more focus on financial literacy so people understand savings, credit, and insurance, not just how to withdraw money.
A
Aditya G
UPI is India's gift to the world! 21 billion transactions in a month is mind-boggling. From a chaiwala to a farmer, everyone is using it. This digital leapfrog is our real strength. The next step should be making these systems even more robust against cyber threats.
S
Sarah B
As someone working in development finance, India's PMJDY is a global case study. The scale and speed of inclusion, especially for women, is unparalleled. The link to Mudra loans for women entrepreneurs is particularly powerful. Other countries have much to learn.
K
Karthik V
Good work, but the Secretary is right to point out the challenges. My mother's Jan Dhan account still has an old KYC. The banking correspondent in our area comes only twice a month. For true inclusion, service reliability is key. More permanent touchpoints are needed in villages.
M
Meera T
56% accounts held by women! This is the most significant statistic for me. It's changing family dynamics. When a woman controls money, she invests more in her children's health and education. This is building a stronger India from the ground up. 💪

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