23% of PM Jan Dhan Accounts Inoperative, Says Government

Key Highlights

• 23% Jan Dhan accounts inactive.

• UP leads with 2.75 crore dormant accounts.

• No UPI transaction charges planned.

• PSBs raised ₹1.53 lakh crore in 3 years.

• Gold loan NPAs show a marginal rise.

Nearly 23% of the total 56.04 crore Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are inoperative, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday.

Over 13 Crore Accounts Inactive

Out of 56.03 crore PMJDY accounts as of July 31, 2025, around 13.04 crore accounts have remained inoperative. As per RBI guidelines issued on February 18, 2009, a savings account becomes inoperative or dormant if there are no transactions for more than two years.

Among states, Uttar Pradesh has the highest number of inactive Jan Dhan accounts at 2.75 crore, followed by Bihar with 1.39 crore and Madhya Pradesh with 1.07 crore.

Steps to Activate Jan Dhan Accounts

The government has taken several measures to ensure the smooth functioning of PMJDY accounts, including Direct Benefit Transfers (DBT), which are also credited to inactive accounts.

Banks regularly inform account holders through letters, emails, and SMS if their accounts are nearing dormancy and follow up on a quarterly basis.

Additionally, the government launches special campaigns to encourage account activation.

A major drive, the Gram Panchayat-level Saturation Campaign, is currently running from July 1 to September 30, 2025, focusing on Re-KYC of inactive PMJDY accounts.

No Charges on UPI Transactions

Chaudhary also clarified that the government has no proposal to impose transaction charges on UPI.

He highlighted that to maintain UPI’s continuity, the government implemented an incentive scheme between FY 2021-22 and FY 2024-25, providing around ₹8,730 crore as support to ecosystem partners.

Public Sector Banks Capital Raising

The Minister further informed that Public Sector Banks (PSBs) continue to raise capital from the market to meet their funding needs.

Between FY 2022-23 and FY 2024-25, PSBs raised a total of ₹1,53,978 crore through equity and bonds.

• ₹44,942 crore in FY 2022-23

• ₹57,380 crore in FY 2023-24

• ₹51,656 crore in FY 2024-25

This capital supports credit growth, ensures compliance with capital adequacy norms, and strengthens banks overall financial position.

Gold Loan NPAs Show Marginal Increase

The ratio of Gross Non-Performing Assets (NPAs) in gold loans for Scheduled Commercial Banks (SCBs) rose slightly from 0.20% in March 2023 to 0.22% in March 2025. For Upper- and Middle-Layer NBFCs, it went up from 1.21% to 2.14% during the same period.

The RBI Ombudsman received 188 complaints related to gold loans in FY 2024–25, which were handled under the RBI Integrated Ombudsman Scheme, 2021.

RBI on Crypto Assets

Replying to another query, Chaudhary said that the Reserve Bank of India (RBI) has reiterated its stance that cryptocurrencies and crypto assets do not fall under its regulatory domain.

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CMV360 Says

The government is working to reduce inactive Jan Dhan accounts through campaigns and Re-KYC drives while ensuring DBT benefits continue. With UPI incentives, strong PSB capital raising, and close monitoring of NPAs, the financial ecosystem is being strengthened. However, challenges like dormant accounts and gold loan stress require ongoing policy focus and effective implementation.