India today is one of the fastest growing economies and is amongst the top 10 economies of the world with estimated GDP of USD 2.1 trillion (Nomura 2014) and fourth biggest when measured in terms of purchasing power. In spite of such a strong position on world economic map it suffers from the problem of poverty and poor financial inclusiveness. According to 2011 census only 58.7 percent of the households have access to banking services. To take care of this situation and to increase the financial connectivity of all households so as to improve their economic conditions and free them from exploitative practices of landlords and agents helping them to collect government payments the Government of India on 28 August, 2014 launched Pradhan Mantri Jan Dhan Yojana (PMJDY) with a target of opening at least one bank account to each household across the country, covering 75 million households by 26 January 2015. It was a general opinion that opening a bank account is not a big achievement but converting these account into active accounts will indeed be a challenge and only time will tell to what extent the scheme has been successful in achieving the objective of promoting financial inclusion or will it be only be yet another scheme with huge promises but little success. The paper focuses on analyzing the progress made by PMJDY, challenges faced and to come up with suggestive measures in order to make this scheme a real success, and be regarded as a premier scheme towards promoting financial inclusion.