In a landmark development for small business financing, sole proprietors across India have received their first round of direct credit transfers through Jan Dhan accounts, under a newly launched financial inclusion initiative. The scheme, introduced by the Ministry of Finance in collaboration with public sector banks, aims to provide hassle-free working capital to micro-entrepreneurs operating as sole proprietors, especially those in underserved and rural regions. This marks a major milestone in the government’s efforts to leverage the Pradhan Mantri Jan Dhan Yojana (PMJDY) platform to deliver structured financial assistance directly to grassroots entrepreneurs.

The initial disbursement, targeted at over 1 million verified sole proprietors, involved microloans ranging between ₹10,000 to ₹50,000, credited without the need for intermediaries or extensive documentation. Beneficiaries were identified through Udyam Registration, Aadhaar verification, and bank-linked KYC processes. The credit facility is part of a broader strategy to formalize the informal sector by strengthening digital payment capabilities and encouraging sole proprietors to operate through traceable financial channels. Government officials noted that this initiative will not only boost liquidity for day-to-day operations but also build credit histories for small business owners, enabling them to access larger institutional funding in the future.

Feedback from the business community has been largely positive, with many sole proprietors expressing relief at receiving government-backed financial support directly in their bank accounts. The transparent and timely transfer of funds through Jan Dhan accounts has also reinforced trust in the digital delivery of public services. Authorities have confirmed that future credit installments will be based on repayment behavior, with the possibility of expanding the scheme to cover a wider range of financial tools, including insurance and pension products. This first-of-its-kind direct credit delivery for sole traders marks a new chapter in India’s mission to build an inclusive and digitally empowered economy.