Financial inclusion refers to the availability and accessibility of affordable financial services to individuals and businesses that otherwise remain outside the formal banking system. It ensures that people, regardless of their income or location, can carry out basic financial activities such as saving, making payments, securing credit and obtaining insurance in a reliable and accessible manner. In recent years, several government-backed schemes have aimed to extend this access across Jammu and Kashmir, gradually integrating remote and rural populations into the financial mainstream. The Pradhan Mantri Jan Dhan Yojana has been one of the key vehicles in expanding the reach of financial services. The scheme has made considerable progress in the Union Territory, with districts like Kathua and Bandipora reporting high enrolment against their targets for the year 2024–25. Despite these achievements, recent reviews suggest that much of the region still lags behind. As of March 2025, the overall achievement stood at 46.75% of the annual target, highlighting the need for sustained outreach to ensure every eligible household is made aware of the services available to them. Cumulative PMJDY accounts reached 21.45 lakh by the end of the financial year, with Samba, Reasi, and Baramulla districts showing the highest enrolment when measured against population data. In the area of personal insurance, the Pradhan Mantri Suraksha Bima Yojana, which provides accidental insurance at minimal cost, has witnessed steady growth. Enrolments under the scheme have risen by 168% over five years, reaching 23.57 lakh. As of the close of the 2024–25 financial year, the enrolment target was not only met but exceeded, with total claims paid out amounting to Rs 18.39 crore. Jammu district accounted for the largest number of beneficiaries, and J&K Bank emerged as the most responsive institution in terms of claim settlement. Life insurance coverage has also improved through the Pradhan Mantri Jeevan Jyoti Bima Yojana, which provides a cover of Rs 2 lakh in the event of death from any cause. Districts like Kishtwar and Kupwara surpassed their annual enrolment targets for 2024–25 by wide margins. The total enrolment since the scheme’s inception reached 9.66 lakh, with Jammu again recording the highest participation. Of the nearly 3,000 claims submitted under the scheme, over 75% have been settled, resulting in payouts amounting to Rs 45.90 crore. These developments reflect not just expansion in numbers, but a gradual shift in the way individuals, particularly in rural and underserved areas, interact with the financial system. Access to formal financial services plays an important role in promoting a culture of saving, enabling people to withstand unforeseen expenses and plan for the future. It also curbs the dependence on informal and often exploitative sources of credit by offering reliable alternatives through banks and micro-insurance products. While enrolment figures point to progress, the path to complete financial inclusion in Jammu and Kashmir requires sustained institutional support. Greater awareness among the population remains a critical need. Financial literacy campaigns, regular village-level outreach and a stronger role for local governance institutions can deepen participation.
Financial Outreach
