Context
The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014 under the Ministry of Finance has completed a decade of successful implementation.
About
- PMJDY being the largest financial inclusion initiative to offer support to the marginalised and economically backward sections through its financial inclusion interventions.
- PMJDY provides one basic bank account for every unbanked adult.
Key Features of the Jan Dhan Yojana
- Under the PMJDY, individuals can open a basic savings bank deposit (BSBD) account at any bank branch or by a Business Correspondent (‘Bank Mitra’).
- Key benefits of the scheme consist of:
- No requirement to hold a minimal balance in PMJDY debts;
- Interest earned on deposits in PMJDY debts;
- Provision of a RuPay Debit card to account holders;
- Accident insurance cover of Rs 100,000 (accelerated to Rs 200,000 for new accounts opened after August 28, 2018) with the RuPay card;
- Overdraft facility of as much as Rs 10,000 for eligible account holders;
- Eligibility for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Micro Units Development and Refinance Agency Bank (MUDRA) scheme.
Significance
- The PMJDY serves as a platform for hassle-free subsidies/accounts made by the government to the intended beneficiary without any middlemen, seamless transactions, and savings accumulation.
- They have been important in presenting life and accident insurance to millions of unorganized sector workers through Jan Suraksha schemes (micro insurance schemes).
Successful Implementation of the Scheme
- The achievement of the initiative is reflected in 53 crore people having been brought into the formal banking system by the opening of Jan Dhan Accounts.
- These bank accounts have garnered a deposit balance of Rs. 2.3 lakh crore, and resulted in the issuance of over 36 crore free-of-cost RuPay playing cards, which additionally offer for a ₹2 lakh accident insurance cover.
- 67% of the debts have been opened in rural or semi-urban sectors, and 55% of accounts have been opened by women.
Conclusion
- PMJDY’s success highlights its task-mode method, regulatory help, public-personal partnerships, and the importance of digital public infrastructure like Aadhaar for biometric identity.
- Account holders can now display saving patterns, which makes them eligible for loans from banks and financial institutions.
- PMJDY being the sector’s biggest financial inclusion scheme, with its transformative power and its digital innovations have revolutionised financial inclusion in India.
Source: Indian Express