A significant portion of Indians with bank accounts are not actively using them, according to the World Bank’s latest ‘Global Findex 2025’ report. The study found that 35% of account holders in India had not conducted any financial activity in the past year, classifying these accounts as inactive. One of the main contributors to this inactivity is the large number of zero-balance Jan Dhan Yojana accounts opened under the government’s financial inclusion scheme. While these accounts have improved banking access across the country, many remain unused due to a lack of regular transactions. The World Bank noted that the share of inactive bank accounts is notably higher in India compared to other developing countries. The report estimates that over 23 crore accounts in India were inactive in 2023, a figure three times higher than the global average of around 8% for developing economies. Launched in 2014, the Pradhan Mantri Jan Dhan Yojana has been a key driver of account ownership, bringing over 450 million Indians into the formal banking system by 2022. However, the report indicates that many of these accounts have not transitioned into active usage due to limited financial activity and service engagement. In addition to low usage, nearly 40% of inactive account holders cited insufficient funds as a reason for not transacting. About 30% also said they were not comfortable using banking services, pointing to gaps in financial literacy and digital accessibility.
From 2017 to 2021, India saw a sharp increase in the number of adults with bank accounts, yet the proportion of inactive accounts remained significantly high. The data shows that 12% of people in India with inactive accounts said they had no money to save, a higher share than the average in similar economies. Experts believe this trend highlights the need for improved financial education, broader access to credit, and deeper integration of account services into people’s everyday economic lives.