India's flagship financial inclusion program faces growing challenges as dormancy rates surge.

India's flagship financial inclusion program faces growing challenges as dormancy rates surge. The Pradhan Mantri Jan Dhan Yojana reported 26% inactive accounts at state-run banks, reaching 143.83 million dormant accounts by March 2026. State Bank of India saw the sharpest deterioration, with inoperative accounts more than doubling to 4.2 million and dormancy ratio climbing from 11% to 23%. Punjab National Bank and Bank of Baroda each reported 27% dormancy rates, while Union Bank of India and Bank of India hit 36% each. Private banks performed slightly better, with dormancy falling to 36%, though ICICI Bank maintained a concerning 65% rate. The total PMJDY portfolio spans 581.8 million accounts holding 3.02 trillion rupees across state and private banks.