- India
- Aug 29
- Sreesha V.M
Pradhan Mantri Jan Dhan Yojana completes 12 years
• The Pradhan Mantri Jan Dhan Yojana (PMJDY) completed 12 years of its implementation on August 28.
• PMJDY, the National Mission for Financial Inclusion, continuously endeavours to provide support to the marginalised and economically backward sections through its financial inclusion interventions.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
• With a view to increase banking penetration, promote financial inclusion and to provide at least one bank account per household across the country, a National Mission on Financial Inclusion, known as Pradhan Mantri Jan Dhan Yojana (PMJDY), was announced on August 15, 2014.
• The scheme was formally launched on August 28, 2014 at national level by PM Modi.
• In order to give impetus to financial inclusion initiatives of the government, PMJDY scheme was extended with the focus on opening of accounts shifting from “every household” to “every unbanked adult”.
How does PMJDY help in financial inclusion?
• PMJDY has been successful in increasing banking penetration and to promote financial inclusion across the country.
• In the Indian context, financial inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups, such as weaker sections and low income groups, at an affordable cost in a fair and transparent manner by mainstream institutional players.
• Financial inclusion is a national priority of the government as it is an enabler for inclusive growth. It provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders.
• Jan Dhan Yojana is one of the largest financial inclusion initiatives in the world.
• Census 2011 estimated that out of 24.67 crore households in the country, only 14.48 crore (58.7 per cent) had access to banking services.
• In the first phase of the scheme, these households were targeted for inclusion through opening of a bank account within a year of launch of the scheme.
• Notably, there are no account opening fees or maintenance charges and no requirement to maintain a minimum balance under this scheme.
Basic tenets of the scheme:
i) Banking the Unbanked: Opening of basic savings bank deposit accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance and zero charge.
ii) Securing the Unsecured: Issuance of indigenous debit cards for cash withdrawals and payments at merchant locations, with free accident insurance coverage of Rs 2 lakh.
iii) Funding the Unfunded: Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.
Features of PMJDY accounts:
• There is no restriction of balances or amount of transactions in fully KYC compliant PMJDY accounts. It is a basic savings bank deposit (BSBD) account.
• Transactions can be done through bank branches, ATMs/CDMs.
• Receipt/credit of money through any electronic channel or by means of deposit /collection of cheques drawn by central/state government agencies and departments.
• No limit on the number and value of deposits that can be made in a month.
• Minimum of four free withdrawals in a month, including ATM withdrawals at any ATM including Metro ATMs. Subsequent withdrawals may be charged by banks.
• Free RuPay debit card with inbuilt accident insurance coverage of Rs 2 lakh.
Achievements under PMJDY:
• PMJDY has empowered millions, particularly the marginalised sections, to access banking and financial services to improve their socio-economic conditions.
• Account ownership has enabled the common man to have insurance and pension coverage.
• Under PMJDY, 77.8 per cent (45.95 crore) of the accounts have been opened in rural or semi-urban areas.
• About 55.7 per cent (32.92 crore) of Jan Dhan account holders are women.
• Total deposit balances under PMJDY accounts stand at Rs 3,16,514 crore.
• The average deposit per account is Rs 5,356.
• As many as 41.29 crore RuPay cards have been issued to PMJDY account holders.
(The author is a trainer for Civil Services aspirants.)