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Seven Years of Pradhan Mantri Jan Dhan Yojana

  • Posted By
    10Pointer
  • Categories
    Polity & Governance
  • Published
    31st Aug, 2021

Recently, the National Mission for Financial Inclusion has completed seven years of successful implementation.

Context

  • Recently, the National Mission for Financial Inclusion has completed seven years of successful implementation.

About the Scheme

  • Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched by Narendra Modi on 28th August 2014.
  • It is a national mission with an aim to provide access to various financial services including-
    • Remittance
    • Credit
    • Insurance
    • Pension
    • Banking Savings
    • Deposit Accounts in an affordable manner

Objectives

  • To ensure access of financial products & services at an affordable cost.
  • Use of technology to lower cost & widen reach.

Benefits provided under this scheme

  • The scheme covers both the urban as well as rural areas and provides an indigenous Debit Card (RuPay card) to each of its account holders.
  • No minimum balance is required for opening an account under this scheme. The beneficiary can open his/her account in any bank branch or Business Correspondent outlet at zero balance.
  • It provides a Core Banking System (CBS) along with mobile banking using USSD facilities. A facility of call center and a toll-free number is available nationwide.
  • Pradhan Mantri Jan Dhan Yojana provides each beneficiary with basic banking accounts with a debit card with inbuilt accident insurance.

Six Pillars of the Scheme

  • Universal Access to Banking Services- Branch and Banking Correspondents. 
    • Accounts opened are online accounts in the core banking system of banks.
    • Focus has shifted from ‘Every Household’ to Every Unbanked Adult’.
  • Basic Savings Bank Accounts with OverDraft (OD) Facility of Rs. 10,000/- to every household.
  • Financial Literacy Program– Promoting savings, use of ATMs, using basic mobile phones for banking, etc.

    • Interoperability through RuPay debit card or Aadhaar enabled Payment System (AePS).
  • Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults.
  • Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after August 2018.
  • Pension Scheme for the unorganized sector.

Current status of the Scheme

  • 5 crore PMJDY account holders receive direct benefit transfer (DBT) from the Government under various schemes.
  • Total deposit balances under PMJDY Accounts stand at Rs 1,46,230 crore.
  • PMJDY Accounts have grown three-fold from 14.72 Crore in March 2015 to 43.04 Crore as on August 18, 2021.

Verifying, please be patient.

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