‘No Directions Given To Banks To Close Inactive Jan Dhan Accounts’, Says Finance Ministry

Last Updated:July 08, 2025, 16:55 IST

‘PMJDY accounts have seen a continuous increasing trend and no incidents of mass closure of inactive PMJDY accounts has come to the knowledge of the department,’ says DFS.

Pradhan Mantri Jan Dhan Yojana: The finance ministry on Tuesday said it has not asked banks to close inactive PM Jan Dhan Yojana accounts. The clarification comes after reports that the government asked banks to close inactive PM Jan Dhan Yojana accounts.

“In connection with reports appearing in media that Department of Financial Services (DFS), M/o Finance has asked Banks to close inactive PM Jan Dhan Yojana accounts, the Department of Financial Services has said that it has NOT asked Banks to close inactive PM Jan Dhan Yojana accounts,” the ministry said in a statement on July 8, 2025.

It added that a three-month campaign starting from July 1 has been launched by DFS all over the country to deepen the adoption of Jan Dhan Yojana accounts, Jeevan Jyoti Bima Yojana, Atal Pension Yojana, and other welfare schemes.

“Banks will also carry out re-KYC of all due accounts during this campaign. DFS constantly monitors the number of inoperative PMJDY accounts and has advised Banks to contact respective account holders to make their accounts operative. The total number of PMJDY accounts have seen a continuous increasing trend and no incidents of mass closure of inactive PMJDY accounts has come to the knowledge of the department,” according to the statement.

What Is Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government scheme launched on August 28, 2014, to provide universal access to banking services for every Indian household, especially the poor and unbanked.

Under this scheme, individuals can open a zero-balance savings account with any bank, and get benefits like a RuPay debit card, accidental insurance cover of Rs 1 lakh (later increased to Rs 2 lakh), life insurance cover of Rs 30,000, and access to government subsidies directly into their account through Direct Benefit Transfer (DBT).

The scheme also promotes financial literacy, encourages savings, and offers access to credit and insurance. As of now, PMJDY has helped bring millions into the formal banking system.

PMJDY, one of the world’s largest financial inclusion initiatives, currently has over 54.58 crore beneficiaries.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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