New Delhi | January 13, 2026 | India’s journey towards financial inclusion has witnessed an unprecedented expansion over the past decade. With more than 530 million (53 crore) bank accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the country has not only transformed access to formal banking but has also emerged as a global leader in digital payments. Official data show that 56% of these accounts are held by women, a key indicator of progress in bridging the gender gap in financial access.
Launched on August 28, 2014, the Jan Dhan scheme brought millions of previously unbanked citizens into the formal financial system. The impact has been particularly significant in rural and semi-urban regions, which together account for nearly 72% of all PMJDY accounts, reflecting the programme’s deep grassroots penetration.
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Sharp Rise in Deposits and Banking Reach
According to financial data, total deposits in Jan Dhan accounts have risen to ₹2.29 lakh crore, placing PMJDY among the world’s largest financial inclusion initiatives. To extend banking services to the last mile, around six lakh banking correspondents are currently active across the country, facilitating cash withdrawals, deposits and digital transactions in remote and underserved areas.
Experts note that the banking correspondent model has played a decisive role in integrating rural cash flows into the formal system. This has significantly improved the delivery and effectiveness of subsidies, pensions and direct benefit transfers, while reducing leakages and delays.
India’s Lead in Digital Payments
India has also made a remarkable leap in digital payments over the past few years. The country now accounts for nearly 50% of global real-time digital payment transactions, underscoring its leadership in this space. The Unified Payments Interface (UPI) has been central to this transformation.
Data indicate that UPI processed more than 21 billion transactions in December 2024 alone, surpassing card-based payments by 101%. Low transaction costs, instant settlement and ease of use through mobile phones have made UPI the preferred mode of payment for everyone from small shopkeepers to large businesses.
Credit Access and Women Entrepreneurship
Leveraging the digital financial infrastructure, the government has also expanded access to credit through the Mudra scheme. Since April 2015, loans worth nearly ₹38 lakh crore have been sanctioned under the programme, covering about 56.32 crore loan accounts. Nearly 67% of these loans have gone to women entrepreneurs.
Policy analysts say this credit flow has boosted small businesses, self-employment and local entrepreneurship, especially in rural and semi-urban areas, contributing to income generation and economic resilience at the grassroots level.
Challenges and the Road Ahead
Despite the achievements, challenges remain. Updating Know Your Customer (KYC) details for accounts opened during the initial phase of the scheme, strengthening financial literacy and addressing emerging cyber security risks are among the key priorities identified by policymakers.
Going forward, the government’s approach is said to rest on three pillars: financial literacy through inclusion, improved access to credit and insurance for risk coverage, and long-term financial security through pension schemes. Officials believe that a coordinated push across these areas will further strengthen the country’s economic foundation.
Global Expansion of UPI
Efforts are also underway to take India’s digital payments success to the global stage. Currently, UPI is accepted in eight countries, enabling Indian tourists and businesses to make seamless payments abroad using domestic apps. The government is now preparing to expand this network into key East Asian markets, which are considered strategically important for tourism and trade.
Overall, the journey from Jan Dhan to digital payments reflects India’s transition towards a more inclusive, transparent and technology-driven economy—one that is increasingly shaping global benchmarks in financial inclusion and digital innovation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
