Amid swirling rumours in certain media outlets about the closure of inactive bank accounts under the #PradhanMantriJanDhanYojana (#PMJDY), the Department of Financial Services (DFS) under the #MinistryOfFinance on Tuesday issued a strong clarification, denying the issuance of any such instructions to banks.
In a formal statement, the DFS emphasized that no directive has been given to banks for the closure of dormant or inactive Jan Dhan accounts.
The department termed these media reports as “factually incorrect” and urged the public and account holders not to fall prey to misinformation.
No Closure, Only Outreach and Reactivation
Instead of closure, the DFS said its current focus is on monitoring inactive accounts and reviving them by encouraging account holders to conduct transactions or link their accounts with government welfare schemes.
“There is no policy decision to shut down inactive accounts. On the contrary, banks have been advised to proactively engage with customers, assist them in updating their #KYC, and inform them about the benefits of keeping their Jan Dhan accounts active,” the department noted.
National Financial Inclusion Campaign Launched
In a move to further bolster the #FinancialInclusion drive across the country, the DFS recently launched a three-month national campaign on July 1, 2025, aimed at increasing awareness and participation in financial welfare schemes.
This includes extensive promotion of:
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#PradhanMantriJeevanJyotiBimaYojana (PMJJBY)
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#AtalPensionYojana (APY)
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And enhanced utility of #PMJDYAccounts
The campaign seeks to ensure that more citizens—especially from underserved rural and semi-urban areas—can access affordable insurance, pension benefits, and financial services.
Re-KYC and Account Awareness Drive
As part of this campaign, banks across the country have been directed to:
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Complete re-KYC formalities for eligible Jan Dhan account holders
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Conduct financial literacy sessions
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Spread awareness on how to reactivate dormant accounts
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Educate citizens on the long-term benefits of linking their accounts with government schemes and DBT (Direct Benefit Transfer)
The campaign also focuses on ensuring that the benefits of various government subsidies and welfare programs reach the intended beneficiaries seamlessly via #DirectBenefitTransfer mechanisms through these bank accounts.
Jan Dhan Growth Continues Steadily
Reassuring the public, the DFS highlighted that the total number of Jan Dhan accounts in the country continues to grow steadily, indicating sustained public trust and participation in the initiative.
“There is no evidence or report of mass closures of dormant Jan Dhan accounts. Instead, banks have been registering new accounts, and efforts are being made to bring inactive users back into the formal banking system,” the DFS statement concluded.