Ltimindtree Limited - 09-Sep-2025

Ltimindtree Limited - 09-Sep-2025

Public-sector banks (PSBs) in India have taken a significant step towards financial inclusion by closing approximately 1.5 million inoperative zero-balance accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) in April 2025. This move aims to clean up the system and ensure that only functional accounts remain [1].

The PMJDY, launched in August 2014 by Prime Minister Narendra Modi, has been instrumental in providing banking services to the unbanked population. However, a recent World Bank report indicated that over a third of bank account holders in India were no longer using their accounts [1].

The initiative to close inoperative accounts was part of a broader effort to streamline the banking system and improve efficiency. According to a senior government official, the closure was necessary to remove duplicate and non-functional accounts [1].

At the end of July 2025, there were 560.3 million PMJDY accounts, with 130.4 million (23 per cent) being inoperative. The closure of these accounts brings the total number of inoperative accounts down, potentially enhancing the overall effectiveness of the financial inclusion program [1].

This action underscores the government's commitment to ensuring that financial services are accessible and beneficial to all citizens. It also highlights the importance of regular audits and clean-ups in maintaining the integrity of the banking system.

References:
[1] https://www.business-standard.com/industry/banking/psbs-shut-1-5-million-jan-dhan-accounts-in-one-time-exercise-in-april-125090301230_1.html