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India's Financial Inclusion Scheme Plagued by Dormant Accounts
8 Sep
Summary
- Over a third of Indian bank accounts inactive as of 2025
- 1.5 million zero-balance accounts closed under PMJDY scheme
- 23% of 560.3 million PMJDY accounts were inoperative
According to a 2025 World Bank report, a significant portion of bank account holders in India have become inactive, with over a third of accounts no longer being used. To address this issue, the Indian government has taken action.
In April 2025, public-sector banks closed approximately 1.5 million inoperative zero-balance accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) financial inclusion program. This one-time measure was aimed at weeding out duplicate and non-functional accounts.
The PMJDY scheme was launched by Prime Minister Narendra Modi in 2014 to provide banking services to the unbanked population. However, as of July 2025, 23% of the 560.3 million PMJDY accounts were found to be inoperative, according to the Minister of State for Finance.
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The high number of dormant accounts highlights the challenges faced by the government in ensuring the long-term usage and engagement of the accounts opened under the PMJDY program. Addressing this issue will be crucial for India's continued efforts to achieve financial inclusion and provide access to banking services for all.
