PM Jan Dhan Accounts: Finance Ministry Clarifies No Directives Issued to Close Inactive Accounts

Amid media reports suggesting that banks were instructed to close inactive PM Jan Dhan Yojana (PMJDY) accounts, the Department of Financial Services (DFS) under the Ministry of Finance has clarified that no such direction has been issued. Instead, a nationwide campaign is underway to promote account usage.

Clarification on PM Jan Dhan Account Closure Rumors

The Department of Financial Services (DFS), Ministry of Finance, has strongly refuted reports that it has directed banks to close inactive PMJDY accounts. Issued on July 8, 2025, the clarification aims to dispel misinformation being circulated in the media.

According to DFS, no instructions have been given to banks regarding the closure of dormant Jan Dhan accounts. The department emphasised that their focus remains on increasing financial inclusion and account activation not elimination.

National Campaign to Boost Scheme Adoption

Rather than closures, the DFS has launched a comprehensive three-month campaign starting July 1, aimed at increasing the adoption of financial welfare schemes. These include:

• PM Jan Dhan Yojana (PMJDY)
• Jeevan Jyoti Bima Yojana
• Atal Pension Yojana

The campaign will involve widespread outreach to educate account holders and encourage usage of these financial tools, especially in underserved and rural areas.

PM Jan Dhan Account Re-KYC and Account Activation Drive

As part of the ongoing campaign, banks have been advised to carry out re-KYC (Know Your Customer) procedures for all accounts that are due. This effort is focused on:

• Ensuring regulatory compliance
• Updating account information
• Reconnecting with dormant account holders

The DFS monitors inoperative PMJDY accounts regularly and has instructed banks to reach out to account holders, encouraging them to make their accounts active rather than closing them.

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Conclusion

The Finance Ministry's clarification puts to rest unfounded concerns regarding the closure of inactive PM Jan Dhan accounts. Rather than discontinuing services, the government’s focus remains firmly on enhancing financial inclusion through proactive engagement, re-KYC updates, and encouraging wider adoption of social welfare schemes.

Account holders are encouraged to stay informed, cooperate with their banks during the ongoing campaign, and continue benefiting from the financial tools made available under the Jan Dhan framework.

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