Over 559 mn accounts opened under financial inclusion scheme Jan Dhan Yojana since 2014: Govt

New Delhi: More than 559 million bank accounts have been opened under the financial inclusion scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) since its launch in 2014, the government informed Parliament on Monday, highlighting efforts to boost financial inclusion and improve access to credit.

In a written reply to a question in the Lok Sabha, minister of state for finance Pankaj Chaudhary said the Centre has taken several initiatives to ensure that access to basic banking services leads to meaningful participation in the formal financial system.

Launched in August 2014, the PMJDY was a key step in banking the unbanked by facilitating the opening of basic savings bank deposit accounts. These accounts come with features such as RuPay debit cards and an in-built overdraft facility.

Chaudhary said the government has undertaken several measures to ensure that credit inclusion complements deposit inclusion, with a strong focus on funding the unfunded.

The Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free credit of up to ₹20 lakh to micro and small enterprises, thereby enabling self-employment and income generation. Since its inception, 53.85 crore loans amounting to over ₹35.13 trillion have been sanctioned under the scheme, he said.

Dedicated schemes such as Stand-Up India (SUPI), PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, and the Prime Minister’s Employment Generation Programme (PMEGP) have been implemented to expand credit access for SC/ST and women entrepreneurs, street vendors, artisans, and other micro-enterprises.

The Credit Guarantee Fund for Micro Units (CGFMU) and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) have been set up to reduce credit risk for lenders and incentivizes formal lending to underserved segments.

To strengthen credit assessment frameworks for individuals lacking conventional credit history, the Government is leveraging technology and alternative data sources, Choudhary said.

Grameen credit score has been announced to support credit appraisal of self-help group (SHG) borrowers and rural populations, including farmers and marginalized communities. This initiative is expected to enhance the quality and objectivity of credit decisions and facilitate improved access to formal credit in rural areas, he said.