Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.
Approach · directive: “do you agree / give arguments”
What it asks · Take a position on whether PMJDY is necessary for including the poor in formal finance, backed by arguments for and against its effectiveness.
It asks 2 things — answer each
- Take a clear position: is PMJDY necessary for bringing the unbanked poor into institutional finance
- Give arguments to justify the opinion, weighing PMJDY's strengths against its limits
Open with · Financial inclusion means timely, affordable access to basic financial services; PMJDY (August 2014) reached 56.16 crore accounts by August 2025, 55.7 per cent held by women, and is necessary though not sufficient for including the poor.
Cover
- Agree, access: zero-balance accounts with a RuPay card carrying Rs 1 lakh accident cover (Rs 2 lakh for accounts opened after 28 August 2018) and an overdraft now up to Rs 10,000.
- Agree, delivery: Aadhaar and mobile seeding (JAM) carry DBT directly; 20.40 crore women Jan Dhan holders received Rs 500 a month under the PM Garib Kalyan Package (March 2020).
- Agree, savings and protection: average deposit per account rose to Rs 4,768 by August 2025, 3.7 times the 2015 level; accounts anchor PMJJBY, PMSBY and Atal Pension Yojana.
- Agree, measured gain: RBI's Financial Inclusion Index rose to 67.0 in March 2025 from 64.2, with growth in access, usage and quality.
- Limits: dormant and duplicate accounts; thin business-correspondent networks, poor connectivity and low digital literacy in remote areas; small overdraft uptake.
- Limits: the poor also need credit and insurance; SHGs, microfinance and MUDRA loans complement basic accounts.
- Way forward: track active use, run financial literacy camps (1,77,102 camps in the 2025 saturation drive), deepen the BC network and design women-centric products.
Close with · PMJDY laid the rails of inclusion; running credit, insurance and pensions on them, and chasing the usage sub-index of RBI's FI-Index rather than the account count, is what makes it sufficient.
Add value (verified)
- Official PMJDY scheme page: RuPay-card accident cover of Rs 1 lakh, enhanced to Rs 2 lakh for accounts opened after 28 August 2018; overdraft facility now up to Rs 10,000. ↗“Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders. An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.”
- PIB (11 years of PMJDY, August 2025): 56.16 crore accounts by 13 August 2025; 55.7% (31.31 crore) held by women. ↗“As on 13th August 2025, total number of PMJDY Accounts have reached 56.16 crore; 55.7% (31.31 crore) Jan-Dhan account holders are women”
- PIB (August 2025): average deposit per PMJDY account Rs 4,768, 3.7 times the August 2015 level. ↗“Average deposit per account is Rs.4,768 as on 13.08.2025. The average deposit per account has increased by 3.7 times compared to August 2015”
- PIB (August 2025): 1,77,102 camps held for enrolment under key schemes and financial literacy in the saturation drive. ↗“total of 1,77,102 camps have been conducted across various districts to facilitate beneficiary enrolment under key schemes and promote financial literacy”
- RBI: the FI-Index for March 2025 stands at 67.0 against 64.2 in March 2024, with growth across Access, Usage and Quality. ↗“The value of FI-Index for March 2025 stands at 67.0 vis-à-vis 64.2 in March 2024, with growth witnessed across all sub-indices, viz., Access, Usage and Quality”
- PIB (26 March 2020), PM Garib Kalyan Package: 20.40 crore PMJDY women account holders to get Rs 500 a month for three months. ↗“A total of 20.40 crores PMJDY women account-holders would be given an ex-gratia of Rs 500 per month for next three months”
Question: UPSC's CS (Main) 2016, GS Paper III — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 292words · Minimalist IAS
Financial inclusion means timely, affordable access to basic financial services. PMJDY (August 2014) had 56.16 crore accounts by 13 August 2025, 55.7 per cent held by women (PIB). I agree: PMJDY is necessary, though not sufficient, for bringing the poor into institutional finance.
Why PMJDY is necessary for the unbanked poor
- Access at zero balance: a basic account with a RuPay card carrying Rs 1 lakh accident cover (Rs 2 lakh for accounts opened after 28 August 2018) and an overdraft now up to Rs 10,000.
- JAM-based delivery: Aadhaar and mobile seeding let benefits reach accounts directly; 20.40 crore women Jan Dhan holders received Rs 500 a month under the PM Garib Kalyan Package (March 2020).
- Savings habit: the average deposit per account rose to Rs 4,768 by August 2025, 3.7 times the 2015 level (PIB).
- Gateway: accounts anchor PMJJBY, PMSBY and the Atal Pension Yojana, and a transaction history for MUDRA credit.
- Measured gain: RBI's Financial Inclusion Index rose to 67.0 in March 2025 from 64.2 a year earlier, with growth in access, usage and quality.
- Account (PMJDY)
- DBT and savings
- insurance and pension
- credit
- full inclusion
Why an account alone is not enough
- Dormancy: many accounts stay inactive or duplicate; ownership is not use.
- Last mile: thin business-correspondent networks, poor connectivity and low digital literacy in remote areas.
- Credit gap: the poor also need affordable credit and insurance; SHGs, microfinance and MUDRA loans complement accounts.
Way forward
- Usage over openings: track active accounts; sustain financial literacy camps (1,77,102 in the 2025 saturation drive); deepen the BC network; design women-centric products.
PMJDY laid the rails of inclusion; running credit, insurance and pensions on them, and chasing the usage sub-index of RBI's FI-Index rather than the account count, will make it sufficient.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
