While crores are relying on government schemes for bare minimum financial security, relief was given recently in the form of a clarification by the Finance Ministry. The ministry on Tuesday stated that it did not have any plans to close dormant Jan Dhan accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY). This came after there were reports in some sections of the media to the contrary.
Finance Ministry Clears the Air
Department of Financial Services (DFS) of the Ministry of Finance explained that it never instructed banks to close inactive accounts under PMJDY. Officials actually said there is a consistent rise in the number of Jan Dhan accounts in India. Officials also cleared that no report of bulk closure of such accounts has come to their notice.
This analysis comes at the right time when trust in public welfare schemes like PMJDY is worth a lot, especially with the poor families relying on it for making the financial system inclusive.
What Led to the Confusion?
Rumor mills began with media that banks have been instructed to close inoperative Jan Dhan accounts. This bred fear and anxiety, particularly among rural recipients who will lose access to bank accounts which are frequently linked with subsidies, insurance, and pensions.
Acting quickly, the DFS said that the government is not interested in closing but in reactivating dormant accounts and promoting increased participation in financial services.
A New Drive to Reconnect
Unexpectedly, the administration is not backing off from the plan, but doubling up. From July 1, DFS initiated a three-month nationwide drive to market three large financial schemes:
Atal Pension Yojana (APY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Jan Dhan Yojana
With this initiative, banks will also conduct re-KYC of eligible accounts. This is done to refresh account information and reach out to customers who have drifted away from accounts over time.
Why Jan Dhan Still Matters
Jan Dhan Yojana has revolutionized financial inclusion since 2014. It included crores of Indians, particularly women and rural dwellers, in the mainstream of banking for the very first time. To most, it is not a bank account, it is a lifeline.
So if you have a Jan Dhan account lying idle for a while, don’t fret. Your account is not disappearing into thin air and the government wishes to encourage you to make the best use of it.