Nine Years of Pradhan Mantri Jan Dhan Yojana

Why in News?

After nine years of excellent implementation, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is now complete.

The Ministry of Finance launched one of the largest financial inclusion efforts in the world when it was introduced on August 28, 2014, with the goal of providing economically disadvantaged and vulnerable groups access to inexpensive financial services.

What is Pradhan Mantri Jan Dhan Yojana?

By providing every household with at least one basic banking account, financial education, and access to credit, insurance, and pension facilities, PMJDY builds a framework for universal access to banking services.

Features of PMJDY:

By using branches and Banking reporters( BCs), it seeks to increase the vacuity of banking services.

Both civic and pastoral areas are covered, and people who open an account admit an indigenous disbenefit card( the RuPay card).

In PMJDY accounts, no minimal balance is need to be kept.

With the RuPay card handed to PMJDY regard holders, accident insurance content ofRs. 1 lakh is available( and is upgraded toRs. 2 lakh for new PMJDY accounts opened after 28.8.2018).

Every good grown-up is given access to an overdraft credit worthRs. 10,000.

PMJDY accounts are eligible for Atal Pension Yojana( APY), Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJJBY), and Direct Benefit Transfer( DBT).

Note:A bank account overdraft enables users to withdraw funds even when there is not enough money in the account. The main purpose of overdrafts is to pay for sudden, short-term needs.

Significance:

Promoting Equitable Growth: PMJDY encourages Financial Inclusion (FI), which results in inclusive growth by giving low-income and disadvantaged populations access to affordable financial services.

Government benefits can now be transferred easily to the accounts of regular individuals thanks to the Jan Dhan-Aadhaar-Mobile (JAM) architecture.

Bringing Savings into Formal Systems: Thanks to PMJDY, the poor no longer have to depend on predatory lenders for their savings.

Women's Empowerment: The majority of Jan Dhan accounts—55.5%—belong to women, fostering their financial independence.

Only one account per home, ideally the lady of the house, is eligible for overdraft.

Achievements:

Through Jan Dhan accounts, more than 50 crore people have gained access to the formal banking system.

These accounts have been opened in rural and semi-urban areas in about 67% of the cases.

To these accounts, around 34 crore RuPay cards with a 2 lakh accident insurance coverage have been provided.

The Department of Financial Services, Government of India, opened 18,096,130 bank accounts in one week as part of the Financial Inclusion Campaign, according to Guinness World Records, which recognised the PMJDY's accomplishment.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Frequently Asked Questions (FAQ)

1. What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?

PMJDY is a financial inclusion program launched by the Indian government with the aim of providing financial services to all households in the country, especially focusing on the unbanked and underprivileged sections of society.

2. When was PM Jan Dhan Yojana launched?

Pradhan Mantri Jan Dhan Yojana was launched on August 28, 2014.

3. What are the key objectives of PMJDY?

The primary objectives include ensuring access to financial services like banking and deposit accounts, promoting financial literacy, and providing access to credit and insurance.

4. What are the main components of PMJDY?

PMJDY has three main components - universal access to banking facilities, financial literacy, and access to credit and insurance.

5. Can anyone open an account under PM Jan Dhan Yojana?

Yes, any individual, regardless of income level, can open a bank account under PMJDY. The focus is on including everyone in the banking system.

6. What documents are required to open an account under PMJDY?

To open a basic savings bank account under PMJDY, one needs to provide a valid proof of identity and address. However, even those without these documents can open an account with a self-declaration.

7. Is there any minimum balance requirement for Jan Dhan Yojana accounts?

No, there is no minimum balance requirement for Jan Dhan Yojana accounts.

8. What benefits do account holders receive under PMJDY?

Account holders receive various benefits such as a RuPay debit card, accidental insurance cover, and life insurance cover under certain conditions.

9. How does PM Jan Dhan Yojana contribute to financial literacy?

The scheme includes financial literacy campaigns to educate account holders about various financial products, services, and the benefits of saving money.

10. Can existing account holders also avail benefits under PMJDY?

Yes, existing account holders can also avail the benefits of PM Jan Dhan Yojana by fulfilling the specified conditions.

11. Is there any age restriction for availing benefits under PMJDY?

No, there is no age restriction, and individuals of all ages can avail the benefits of PM Jan Dhan Yojana.

12. How can one enroll in PM Jan Dhan Yojana?

Interested individuals can enroll in PMJDY by visiting their nearest bank branch or business correspondent (BC) center and filling out the required form. They can also apply through online channels.

13. Can one link Aadhaar to their Jan Dhan account?

Yes, Aadhaar can be linked to Jan Dhan accounts for various benefits and services.

14. What is the role of Business Correspondents (BCs) in PMJDY?

Business Correspondents play a crucial role in reaching out to rural and remote areas, facilitating account opening, and providing basic banking services under PMJDY.

15. Is there any government subsidy linked to Jan Dhan accounts?

Jan Dhan account holders may receive direct benefit transfers (DBT) and government subsidies directly into their accounts, promoting a more efficient and transparent delivery system.

Source: PIB