PM Jan Dhan Yojana | GOVERNMENT SCHEME

PM Jan Dhan Yojana | GOVERNMENT SCHEME

Pradhan Mantri Jan Dhan Yojana benefits

Pillars

Extension of PM Jan Dhan Yojana with new features

Relevance

GS 3: Inclusive growth and issues arising from it.

 

Context

PM Jan Dhan Yojana (PMJDY) has completed seven years of its implementation.

 

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Achievements

PMJDY Accounts have grown three-fold from 14.72 Crore in Mar’15 to 43.04 Crore as on 18-08-2021. 

One in 2 accounts opened between Mar’14 to Mar’20 was a PMJDY account.

Women account for 55% of Jan-Dhan accounts, with 67% located in rural and semi-urban regions.

Out of the entire 43.04 crore PMJDY accounts, 36.86 crore (86%) are active.

The Jan Dhan Darshak app is a tool for identifying communities that are not served by banking touchpoints within 5 kilometers. 

The efforts have resulted in a significant decrease in the number of such villages.

 

About PMJDY

Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion (Read about Financial Inclusion Index from here) to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.... 

Objectives

To guarantee that people have access to affordable financial goods and services.

To lower cost & widen reach in the country through use of technology.

 

Pradhan Mantri Jan Dhan Yojana benefits

Banking the unbanked – creation a basic savings bank deposit (BSBD) account with little paperwork, flexible KYC, e-KYC, account creation in camp mode, zero balance and zero costs

Securing the unsecured entails issuing Indigenous Debit cards for cash withdrawals and payments at merchant locations, together with free accident insurance coverage of Rs. 2 lakh.

Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

 

Pillars

Initially, the scheme was launched based upon the following 6 pillars:

Universal access to banking services through Branch and Banking Correspondents (BC).

Basic savings bank accounts with an overdraft limit of Rs. 10,000/- for every eligible adult

Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking

Creation of Credit protection Fund - To give banks with some protection against failure.

Insurance - Accident coverage of up to Rs. 1,00,000 and life insurance of Rs. 30,000 for accounts registered between August 15, 2014 and January 31, 2015.

Pension scheme for Unorganized sector.

Extension of PM Jan Dhan Yojana with new features

The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications

Focus shifted from ‘Every Household’ to Every unbanked adult

RuPay Card Insurance - The free accidental insurance cover on RuPay cards has been extended from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts registered after August 28, 2018.

Enhancement in overdraft (OD) facilities – 

OD limit doubled from Rs 5,000/- to Rs 10,000/

OD upto Rs 2,000/- (without conditions).

Increase in upper age limit for OD from 60 to 65 years....