How is India Bringing Banking to the Last Mile? A Story of Growth! #IndiaFinance

Imagine living in a remote village where banking was once a luxury—an alien concept only accessible to the privileged few in urban centers. Just a decade ago, millions of Indians found themselves financially excluded, with no formal savings, insurance, or access to credit. But today, India is witnessing a silent revolution—one that is reshaping the economic landscape and bringing financial security to the doorstep of the common citizen.

The numbers tell a compelling story. As of March 7, 2025, over 55.02 crore bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY)a flagship initiative that has transformed financial inclusion in India. What’s even more remarkable is that 36.63 crore of these accounts belong to individuals in rural and semi-urban areas, proving that the initiative is truly reaching those who need it most.

This is not just a banking initiative—it is a lifeline. With access to bank accounts, millions now have a secure place to save money, receive government benefits directly, and take the first steps towards financial independence.

TICE brings more highlights on how banking is reaching to the last mile in India.

Insurance for the Masses: A Safety Net for Every Indian

While access to banking is a crucial first step, financial security goes beyond savings. That’s where government-backed insurance schemes come into play. The Pradhan Mantri Suraksha Bima Yojana (PMSBY) has made accident insurance accessible to the masses. With an annual premium of just ₹20enrollees receive coverage of ₹2 lakh for accidental death or permanent total disability, and ₹1 lakh for permanent partial disability. This affordable insurance scheme has already covered a staggering 50.30 crore individuals.

Similarly, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is providing life insurance to those who were previously left unprotected. With 23.21 crore enrollees, this initiative ensures that even the most economically disadvantaged families have a financial safety net in times of crisis.

Securing the Future: Pension and Entrepreneurship Support

Beyond immediate financial needs, long-term security is essential. The Atal Pension Yojana (APY) is empowering unorganized sector workers with pension benefits. With 7.49 crore enrolments, this initiative is paving the way for a more financially secure retirement for millions of Indians who previously had no formal pension plan.

But financial inclusion isn’t just about saving and insurance—it’s also about creating opportunities. The Pradhan Mantri Mudra Yojana (PMMY) is a testament to this vision, having sanctioned 52.07 crore loans amounting to ₹33.19 crore as of February 28, 2025. By providing collateral-free credit to micro and small businesses, this scheme has become the backbone of entrepreneurship in India, enabling small business owners to thrive and contribute to the economy.

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Another initiative, the Stand Up India Scheme (SUPI)is empowering SC/ST and women entrepreneurs by providing financial assistance. Since its launch, the scheme has sanctioned 2.67 lakh loans worth ₹60,504 crorefostering a culture of business ownership and financial self-reliance among marginalized communities.

Uplifting Artisans and Street Vendors: Economic Growth at the Grassroots Level

While digital banking and insurance have been transformative, the government is also focusing on India’s traditional workforce. The PM Vishwakarma Schemelaunched on September 17, 2023, supports artisans and craftsmen in 18 traditional tradesincluding blacksmithing, carpentry, and weaving. By providing skill training, financial aid, and digital incentives, this initiative is not only preserving age-old crafts but also modernizing them to meet contemporary demands.

Street vendors, one of the most vulnerable sections of society, have also received significant support under the Pm thunder scheme. Launched on June 1, 2020, this scheme provides working capital loans to street vendors, helping them sustain their businesses and recover from the economic impact of COVID-19. With easy access to formal credit, these small entrepreneurs are now able to grow their businesses and achieve financial stability.

The Road Ahead: Expanding Financial Literacy and Awareness

While the numbers are impressive, financial inclusion is more than just statistics—it’s about real people experiencing real change. To ensure that these schemes continue to have a lasting impact, the government is ramping up efforts to spread financial literacy. Village-level financial literacy camps are being organized across the country, educating citizens on banking services, insurance benefits, and digital transactions.

Minister of State for Finance Pankaj chaudhary shared these insights in a written reply to a question in the Rajya sabhaemphasizing that financial inclusion remains a top priority for the government. The journey is far from over, but India’s ambitious strides in bringing banking, insurance, and credit to the masses signal a future where financial empowerment is no longer a privilege, but a fundamental right.

India’s financial inclusion journey is not just a policy initiative; it is a social and economic revolution. From enabling a farmer in a remote village to receive government subsidies directly into their bank account, to providing a street vendor with the credit they need to expand their business—these initiatives are changing lives.

As India continues on this path, the goal is clear: a financially empowered nation where every citizen, regardless of their background, has the tools and resources to build a secure and prosperous future.