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Announced on August 15, 2014, the Pradhan Mantri Jan-Dhan Yojana that completed its seventh anniversary on August 28 can easily be described as the most remarkable financial inclusion programme not only because of its reach but also because of its impact. The numbers themselves are quite startling. The scheme has brought 43.04 crore people – far more than the combined population of the US and UK – into the fold of banking and the number is rising constantly. The scheme has prepared 31.23 crore of the beneficiaries at the bottom of the pyramid for ATM/online transactions through the issuance of ATM-cum-debit cards. One of its social impacts has been the contribution to the empowerment of women. As much as 55.47% of the total beneficiaries are women. A free accidental insurance of Rs 2 lakh comes with each Rupay card issued to the beneficiaries.

Furthermore, 66.69% of the accounts have been opened in rural and semi-urban areas where the penetration of banks is low. We must not forget that the virtual absence of banking services has been one of the factors that paved the way for the Ponzi schemes flourishing in many states of this country defrauding lakhs of poor people of their hard-earned money. Another salutary effect of these accounts has been the improvement of the efficiency levels of the cash transfer welfare schemes. Money can now be transferred directly to the accounts of the beneficiaries that have minimised the chance of leakage of the cash.

However, there are pockets inside the scheme that needs attention and improvement. Out of a total of 43.04 crore PMJDY accounts, 36.86 crore or 85.6% are operative. The authorities need to find out why are 6.18 crore accounts are lying inoperative and take steps so that the beneficiaries get to use them. Two, only 72.56 of the beneficiaries have got ATM-cum-debit cards. There is also a huge inter-state disparity in the share of the beneficiaries who were issued cards. At the end of FY21, about 90% of the beneficiaries of Jan-Dhan accounts in Ladakh had debit cards. But only 35.14% had it in Manipur. The authorities have to look into the reasons for this wide disparity and reduce it while improving the overall coverage rate.