More than 23% or 130.4mn (million) savings bank accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) across the country are lying inactive, even as the flagship financial inclusion scheme continues to expand with a total of 560.4mn accounts opened till 31 July 2025, the government informed the Lok Sabha.
Responding to a question, minister of state for finance Pankaj Chaudhary says that under the Reserve Bank of India (RBI)’s guidelines, any savings account is treated as inoperative or dormant if there are no transactions for over two years. The state-wise data presented in the reply showed sharp variations across states, underlining the challenges of keeping accounts active in the long term.
The official figures reveal that nearly one in every four Jan Dhan accounts has become inactive. Uttar Pradesh alone accounts for 27.5mn dormant accounts, followed by Bihar with 13.9mn and West Bengal with 8.83mn . Maharashtra (8.06mn), Rajasthan (7.8mn) and Madhya Pradesh (10.7mn) also feature among the states with the highest number of inactive accounts.
In percentage terms, states like Chandigarh (32%), Goa (39%), and Delhi (28%) show a significant proportion of dormant accounts relative to total accounts opened. Smaller states and Union Territories (UTs) such as Lakshadweep and Ladakh, though numerically small, also reflect inactivity challenges.
The data suggests that while the scheme has been enormously successful in expanding banking access, sustained account usage remains an area of concern.
The finance ministry says that several steps have been taken to ensure the smooth functioning of PMJDY accounts. It says benefits under various government schemes, particularly direct benefit transfer (DBT), are credited even into inactive accounts, ensuring that subsidies and entitlements reach beneficiaries directly.
Banks are mandated to inform customers about accounts nearing inactivity through letters, emails, or SMS alerts on a quarterly basis and special awareness and enrolment campaigns are conducted periodically to encourage usage, Mr Chaudhary says.
Most recently, the government launched a gram panchayat-level saturation campaign from 1st July to 30 September 2025, with re-KYC (know-your-customer) of inactive Jan Dhan accounts listed as a key focus activity.
The inactivity in PMJDY accounts is largely linked to socio-economic factors. In many rural and semi-urban areas, account holders open accounts but do not maintain balances or carry out transactions regularly due to a lack of income flow. Migrant labourers often open multiple accounts in different states, leading to duplication. In several cases, the accounts were originally opened to access government welfare schemes but remained unused once initial benefits were withdrawn.
The banking industry claims that account dormancy increases the cost of maintenance for banks, as servicing accounts with little or no activity requires manpower and compliance without generating revenue.
The reply in the Lok Sabha underlines a central challenge for PMJDY — balancing financial inclusion with account activity. While opening 560mn accounts reflects deep penetration of banking services, the fact that over 130mn accounts are inactive raises questions about their effectiveness in empowering the financially excluded.
The ongoing saturation campaign, which emphasises re-KYC, could help clean up inactive accounts, but long-term solutions will require improving digital and cash transaction facilities at the village level, creating financial literacy and linking accounts more closely with recurring income opportunities.
State-level Insights
Uttar Pradesh: With nearly 100mn accounts and 27.5mn inactive ones, UP represents the single largest block of Jan Dhan users. Experts say rural poverty and high levels of seasonal migration drive the inactivity trend.
Bihar: Out of 64.7mn accounts, 13.9mn are dormant, showing that around 21% of account holders do not transact regularly.
West Bengal: With 8.83mn inactive accounts out of 54.2mn, the state has one of the higher inactivity ratios.
Southern states: Karnataka (5.40mn inactive), Andhra Pradesh (4.35mn), and Tamil Nadu (3.92mn) also reflect a pattern of significant dormancy despite higher literacy and digital penetration.
Smaller UTs: Places like Lakshadweep (12% inactive) and Ladakh (29%) show that even in smaller populations, dormancy persists.
The government’s move to include inactive PMJDY accounts in DBT transfers is critical, as it keeps accounts alive technically and prevents them from being closed. However, the ultimate goal of PMJDY — integrating the poor into mainstream financial activity — requires behavioural change, trust-building and more diverse financial products tailored for small-income groups.
As the scheme enters its 11th year since its launch in August 2014, the numbers highlight both the success of universal banking access and the continuing challenge of sustained engagement. The government’s gram panchayat-level campaign is being closely watched.
