If you have an account under the Pradhan Mantri Jan Dhan Yojana (PMJDY), there’s an important update you should be aware of. Recent media reports had raised concerns that the government is planning to close Jan Dhan accounts that have remained inactive for more than 24 months. However, the Finance Ministry has issued a clarification to address this confusion.
Here’s the full story and what it means for Jan Dhan account holders like you.
Is the Government Closing Jan Dhan Accounts?A report circulated recently claiming that the government has directed banks to close all Jan Dhan accounts with no transactions in the past two years. This caused widespread panic, especially among rural and low-income account holders.
However, the Finance Ministry swiftly responded, stating that no such directive has been issued. The government clarified that accounts under PMJDY will not be closed just because they are inactive.
Instead, the government is actively working to increase engagement with these accounts and is running special campaigns to encourage more usage and awareness among account holders.
Why Was There Confusion?The misunderstanding stemmed from reports highlighting that inactive bank accounts are vulnerable to cyber fraud and money laundering activities. It's true that maintaining and monitoring dormant accounts incurs costs for the government and banks. Therefore, a suggestion was made that accounts inactive for a long period might be reviewed.
But the government has confirmed that no blanket order has been issued to shut such accounts.
Inactive Jan Dhan Accounts: The RealityAs per official data, there are around 11.3 crore inactive PMJDY accounts, with the majority located in rural areas. These accounts were opened under the financial inclusion mission but haven’t seen much use since then.
These dormant accounts pose challenges for both governance and fraud prevention. However, instead of abrupt closures, the government plans to implement systematic steps to reactivate them securely.
Impact of Account Closure (If It Happens)While your Jan Dhan account is not being closed automatically, it's still important to keep it active. If your account becomes inactive and is eventually closed, you may lose access to several government benefits, such as:
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Direct Benefit Transfers (DBT)
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Subsidies
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Pension schemes
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Insurance coverage under PMJDY
Maintaining regular transactions—even small ones—can help keep your account in good standing.
How to Reactivate an Inactive Jan Dhan AccountBanks have been directed to help customers reactivate their dormant accounts rather than shut them down. This is being done via the Re-KYC (Know Your Customer) process. Here's how to get your account reactivated:
Visit your bank branch with a valid ID proof (Aadhaar card, PAN card, etc.).
Submit updated KYC documents as per the bank’s instructions.
Complete any required forms and provide signatures or biometric verification.
After re-KYC, your account will be considered active and fully functional.
If you do not complete the KYC process and your account remains inactive, the bank may close it in compliance with RBI guidelines after due diligence.
Government’s Goal: Expand Jan Dhan Reach, Not Restrict ItThe central government has reaffirmed that its mission is to enhance financial inclusion, not limit it. Special drives are underway to:
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Encourage account holders to use Jan Dhan accounts for daily banking.
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Spread awareness about government welfare schemes linked to PMJDY.
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Ensure benefits reach the neediest sections of society through active accounts.
If you have a Jan Dhan account, the best way to ensure its continued availability is to keep it active. Even small deposits, withdrawals, or digital transactions every few months can maintain your account's status.
And if your account hasn’t been used in a long time, visit your bank for re-KYC before any action is taken.
Being informed and proactive can save you from the inconvenience of account closure and ensure that you continue to receive the full range of government benefits.
Disclaimer: This article is for informational purposes only. Please consult with your bank or the official PMJDY website for the most accurate and personalized guidance.
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