The committee suggested that banks proactively guide customers through text messages, calls or interactions in the branches. AI tools can be used to identify eligible account holders, ensuring privacy.
The Petitions Committee has noted that although zero balance accounts are offered by Public Sector Banks (PSBs), many potential customers are either unaware of their availability or are concerned about the services offered alongside such accounts.
BSBDA and PMJDY accounts do not require a minimum balance, and essential banking services are offered free of charge.
Customer education needed
“Due to lack of awareness, customers often open regular savings accounts without understanding the differences. Often, low-income customers open standard savings accounts… because they are not made aware of the existence of Jan Dhan accounts,” said a report by the Finance Ministry panel chaired by Chandra Prakash Joshi, BJP Member of Parliament (Lok Sabha) representing Chittorgarh, Rajasthan.
Migration route proposed
To address this issue, banks can, if feasible, create a structured, customer-friendly migration path in which they proactively reach out to customers via SMS, phone calls or in-branch interactions to propose moving to zero-balance accounts, as per the committee’s recommendation. This will prevent the gradual depletion of resources through charges and ensure that economically vulnerable customers remain protected.
AI-powered identification
The Committee suggested that banks should use AI tools to analyze data, exercising due caution to protect customer privacy, identify customers whose transaction patterns meet the criteria for BSBDA or PMJDY accounts and proactively offer migration to these accounts.
Some of the proposed identification parameters may include the receipt of social benefits from the government, low average annual balances or other socio-economic indicators.
Service expansion plan
The Committee also recommended that banks explore the feasibility of expanding the services offered in addition to BSBDA and PMJDY accounts, including increasing the number of ATM transactions per month. These measures will make zero balance accounts more attractive, leading to more digital transactions and stronger savings habits.
Account growth statistics
The number of BSBDAs rose 2.6 per cent year-on-year (yoy) to 72.4 crore at end-March 2025, while the total balance in these accounts rose 9.5 per cent to ₹3.3 lakh crore, according to RBI’s Report on Trend and Progress of Banking in India 2024-25.
At the end of March 2025, the total number of PMJDY accounts stood at 55.2 crores, of which 96.4 percent were managed by public sector banks and regional rural banks. Total deposits in PMJDY accounts rose 12 per cent to ₹2.6 lakh crore at the end of March 2025.
Savings deposits of scheduled commercial banks rose 4 per cent year-on-year to ₹66,16,106 crore at end-March 2025.
Published on February 18, 2026
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