Top five States account for 54% of Jan Dhan beneficiaries; SBI leads in accounts

More than 54 per cent of India’s 58.7 crore Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are concentrated in five States, led by Uttar Pradesh with 10.43 crore accounts, according to a businessline analysis of data tabled in Parliament. Bihar, West Bengal, Madhya Pradesh and Rajasthan complete the top five. E

More than half of India’s Pradhan Mantri Jan Dhan Yojana (PMJDY) beneficiaries are concentrated in just five states, Uttar Pradesh alone accounting for nearly 18 per cent of the country’s 58.7 crore accounts.

Businessline analysis of a response to a starred question in the Lok Sabha reveals that Uttar Pradesh tops the list with 10.43 crore PMJDY accounts. It is followed by Bihar (6.98 crore), West Bengal (5.70 crore), Madhya Pradesh (4.73 crore), and Rajasthan (3.85 crore). Together, these five states account for about 54 per cent of all Jan Dhan beneficiaries.

Experts said the concentration reflects both demographics and the scheme’s focus on expanding banking access in less financially included regions.

“The top five states are the most populous, least banked and poorest. Hence, population and low baseline inclusion are the two key factors influencing PMJDY coverage,” said Vivek Iyer, Partner and Financial Services Risk Leader, Grant Thornton Bharat.

Madan Sabnavis, Chief Economist, Bank of Baroda, said rising government welfare transfers have also contributed to higher balances and greater use of Jan Dhan accounts in these states. “As social welfare spending increases, these states would typically tend to have larger amounts in Jan Dhan accounts,” he said.

The quality of PMJDY accounts has also improved over time. The average balance in Jan Dhan accounts rose nearly 10 per cent to ₹4,768 in 2025 from ₹4,352 a year earlier, while the share of zero-balance accounts has steadily declined.

The data also highlights the overwhelming role of public sector banks in implementing the scheme. State Bank of India (SBI) alone manages 18.14 crore Jan Dhan accounts (30.9 per cent of the national total). Bank of Baroda (BOB) and Punjab National Bank (PNB) follow with 9.22 crore and 8.8 crore accounts, respectively.

However, at the state level, the leading bank varies considerably. BOB has the largest share in Uttar Pradesh and Gujarat; PNB leads in Bihar and West Bengal; Canara Bank dominates Karnataka; while Indian Overseas Bank has the largest share in Tamil Nadu. Meanwhile, SBI accounts for more than half of all PMJDY accounts in Rajasthan.

According to Iyer, three factors determine a bank’s dominance in a state: whether it is the designated lead bank, the reach of its regional rural bank network, and the size of its branch footprint. These factors have helped SBI maintain its lead, as it serves as the lead bank in multiple States and Union Territories and has the country’s largest branch network.

Sabnavis noted that many public sector banks also retain historical strengths in particular regions, even as they have expanded nationwide.

While PMJDY has significantly expanded access to banking, experts cautioned against treating the number of accounts as a complete measure of financial inclusion. “The number of accounts reflects access created, not account usage,” said Iyer, adding that metrics such as direct benefit transfer transactions, account balances, overdraft uptake and RuPay card activation provide a better indication of whether beneficiaries are actively using banking services.