The Pradhan Mantri Jan Dhan Yojana, a cornerstone of the Indian government’s initiatives for financial inclusion, has seen remarkable success in connecting remote areas with the financial system.
However, recent data from the Finance Ministry reveals that out of the 51 crore Jan Dhan accounts opened, more than 10 crore have been deactivated, leaving Rs 12,779 crore unclaimed.
Jan Dhan Yojana’s Impact on Financial Inclusion
The Jan Dhan Yojana has played a pivotal role in extending financial benefits to the underprivileged and facilitating the success of the Direct Benefit Transfer Scheme.
With over 51 crore accounts opened nationwide, its impact has been substantial. However, the surprising aspect is the deactivation of more than 10 crore accounts.
Reasons Behind Deactivation
Minister of State for Finance Bhagwat Karad explains that multiple reasons contribute to account deactivation, often unrelated to the account holders.
Inactivity, where no transactions occur for an extended period, can lead to account closure, aligning with Reserve Bank of India guidelines that consider savings and current accounts dormant after two years of no customer transactions.
Efforts to Reduce Inactive Accounts
Acknowledging the issue, Karad notes that banks are actively working to reduce the percentage of inactive accounts.
Government monitoring ensures a concerted effort to address this concern and ensure financial inclusion remains effective.
Deposits and Demographics
As of now, a total of Rs 2,08,637.46 crore has been deposited in Jan Dhan accounts, with 55.5 percent of these accounts belonging to women.
While the majority of accounts have funds, 4.30 crore accounts show a balance of zero. Notably, there is no minimum balance requirement for Jan Dhan accounts.
Reactivation Process
For those with deactivated accounts, reactivation is possible by submitting an application to the bank.
After completing the KYC process, the account can be reactivated, ensuring individuals can reclaim their unclaimed funds.
