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Why in News

  • Total deposits in the last three years have grown by over 2.5 times to ₹98,400 cr.


  • Public sector banks stand to earn as much as ₹5,000 crore due to the increasing quantum of deposits placed in Jan Dhan accounts, and can vastly monetise this resource once they start implementing advanced analytics and begin lending to these customers, Over the last three years, the number of Jan Dhan beneficiaries has risen from 22 crore to 35 crores, as of April 2019.
  • This represents a growth of nearly 60% over the three years. The growth in the number of accounts has been pretty steady over the last three years, with the demonetisation year of 2016-17 seeing the fastest growth of about 27%. The total quantum of deposits in Jan Dhan accounts has grown from a little more in April 2019, a growth of more than 2.5 times.

Rising balances

  • A balance of about ₹1 lakh crore is equal to a revenue of ₹3,000 crore
  • With that amount of revenue, the banking system can start making it a break-even business, and if they start lending on top of it, it can really become viable.”. the business of opening and maintaining Jan Dhan accounts must be viewed in the long-term, and must also be taken in combination with other activities that see the opening of bank accounts for the poorer sections of society.
  • The data also shows two distinct trends in the Jan Dhan accounts. The first is that the public sector banks make up an overwhelming 72.5% of the total number of Jan Dhan accounts, and 89.5% of total deposits. The bulk of the rest are made up by regional rural banks.


Jan dhan yojana

  • Jan dhan yojana is the ambitious scheme which will strengthen India through collecting revenues.

Major objective of Jan-Dhan Yojana:

  • The Jan-Dhan Yojana is aimed to provide basic banking accounts with a debit card with inbuilt accident insurance. Jandhan-Aadhaar-Mobile (JAM) linking will continue to provide the essential backbone to cover various activities. This includes Banking / Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. This decision to make Pradhan Mantri Jan Dhan Yojana an open ended scheme will accelerate the pace of digitised financially included and insured society.
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