Assessing the role of Pradhan Mantri Jan Dhan yojana in advancing financial inclusion in India

Financial inclusion has emerged as a critical driver of equitable economic development, and India’s Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, represents one of the world’s largest initiatives aimed at universalizing access to formal financial services. This study assesses the role of PMJDY in advancing financial inclusion by examining its impact on banking penetration, account ownership, usage of financial services, and access to credit among previously unbanked and underbanked populations. The analysis highlights how the scheme has expanded the reach of financial institutions, encouraged digital transactions, and facilitated the direct transfer of government benefits. Despite these achievements, challenges such as account dormancy, low financial literacy, and uneven regional performance persist. This research provides insights into the strengths and limitations of PMJDY and offers policy recommendations to enhance its effectiveness in strengthening inclusive and sustainable financial growth across India.