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11.30 Crore PM JanDhan Accounts Are Inoperative with Rs14,750.27 Crore Balance: Govt
Moneylife Digital Team 13 December 2024
Consumer Interest
Indian banks have opened 540.3mn (million) or 54.03 crore Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts since the launch of the scheme over ten years ago and nearly 21% or 113mn of these accounts are inoperative or dormant (no customer-induced transaction for two years), the government told the Lok Sabha.
 
Congress president and member of Parliament (MP) Mallikarjun Kharge has asked the Union ministry of finance (FinMin) about the current status of PMJDY accounts and funds lying dormant in these accounts.
 
In a written reply, Pankaj Chaudhary, minister of state for finance, says, "As reported by banks, as of 20 November 2024, a total of 54.03 crore accounts have been opened under PMJDY. Out of these, 11.30 crore accounts are inoperative accounts."
 
"As per Reserve Bank of India (RBI) guidelines, a savings as well as a current account should be treated as inoperative or dormant, if there are no customer-induced transactions in the account for over a period of two years. Banks continuously make concerted efforts to monitor the percentage of operative accounts and the progress is being regularly monitored by the government. Also, banks organise camps to create awareness about banking habits, including the benefits of keeping the account active," he added.
 
Mr Chaudhary says RBI has advised banks to undertake an annual review of accounts and deposits where there have been no customer-induced transactions for more than a year and to take steps to trace the customers of these accounts and deposits.
 
According to the minister, banks have been advised to take necessary steps urgently to bring down the number of inoperative accounts and make the process of activation of such accounts smoother and hassle-free, including by enabling seamless updation of know-your-customer (KYC) through mobile or internet banking, non-home branches and video customer identification process (V-CIP).
 
"As a result of these initiatives, the percentage of the number of inoperative PMJDY accounts for public sector banks (PSBs) has declined from 39.62% in March 2017 to 20.91% in November 2024," Mr Chaudhary says.
 
Data shared by the FinMin shows that Uttar Pradesh tops in every aspect of the PMJDY, including the number of accounts, the number of inoperative or dormant accounts and the balance in these dormant accounts. Uttar Pradesh has a total of 96.4mn (or 9.63 crore) accounts opened under the PMJDY scheme, out of which 23.4mn or 2.34 crore are inoperative with a balance of Rs2,763.69 crore in them.
 
Bihar is the second state in these parameters with 61.4mn PMJDY accounts. There are 11.9mn or 1.19 crore dormant accounts with a balance of Rs2,007.66 crore. 
 
While West Bengal has 52.59mn PMJDY accounts, it is behind Madhya Pradesh in terms of dormant accounts and the balance in such accounts. West Bengal has 7.85mn inoperative accounts with a Rs827.73 crore balance, while MP has 9.21mn dormant accounts with a balance of Rs1,079.75 crore, data shared by the FinMin shows. (for more info, see the image below)
 
Comments
abhay1955
1 month ago
Even in a metropolitan city like Mumbai, bank staff was given targets to open these accounts when actually it was for those who do not hold any bank account. So, the outcome is inevitable. The amount lying in PMJDY in operative accounts in UP and Bihar is stunning.
Reply
bnsaug30
1 month ago
?11,750 Cr is USD 1.4 Billion.
That much money is lying idle?!?????????

How many vandE Bs cd've been run with that kinda money?
Reply
tenkaraimohan
1 month ago
All the banks conducted Road Shows and Campaigns for opening PMJDY accounts during 2014-15 and also later. Multiple banks lured the same customers with lot of benefits of PMJDY including Zero balance accounts. Accounts were opened with just Aadhar card. In the process thousands of customers opened multiple PMJDY accounts with more than one bank. The achievement under PMJDY will show the correct picture if those multiple accounts of same customers are eliminated
Reply
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