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Pradhan Mantri Jan-Dhan Yojana (PMJDY) Completed Six Years of Successful Implementation

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National-Mission-for-Financial-Inclusion,-completes-six-years-of-successful-implementationOn August 28, 2020, the 6th anniversary of Pradhan Mantri Jan Dhan Yojna (PMJDY) was observed which was launched on August 28, 2014. On this occasion, Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman reiterated the importance of this biggest financial inclusion initiative in the world. It has been the foundation stone for the Indian government’s people-centric economic initiatives.

About Pradhan Mantri Jan Dhan Yojana (PMJDY):

The objective of PMJDY is to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

  • The Slogan of PMJDY is “Mera Khata – Bhagya Vidhaata.”
  • It is operated by the Department of Financial Services under the Union Finance Ministry.

6 Pillars of scheme:

The scheme was launched based upon the following 6 pillars: 

  1. Universal access to banking services 
  2. Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every household
  3. Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
  4. Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
  5. Insurance – Accident cover up to Rs. 1,00,000 and life cover of   Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
  6. Pension scheme for Unorganized sector

 Extension of PMJDY with New features – The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications

  • Focus shift from ‘Every Household’ to Every Unbanked Adult’
  • RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
  • Enhancement in overdraft 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

Key Points:

-As on 19th Aug’20 the total number of PMJDY Accounts is 40.35 Crore; Rural PMJDY accounts: 63.6%, Women PMJDY accounts: 55.2%

-Out of total 40.35 crore PMJDY accounts, 34.81 crore (86.3%) are operative.

-Total deposit balances under PMJDY Accounts stand at Rs. 1.31 lakh crore.

About 8 crore PMJDY accountholders receive direct benefit transfer (DBT) from the Government under various schemes.

-A mobile application Jan Dhan Darshak App was launched to provide a citizen centric platform for locating banking touch points such as bank branches, ATMs, Bank Mitras, Post Offices, etc. in the country. This app is also being used for identifying villages which are not served by banking touchpoints within 5 km. 

Recent Related News:

On June 30, 2020, Prime Minister Shri Narendra Modi, during televised address to the nation announced the extension of Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) from July, 2020 till the end of November 2020, with an outlay of more than Rs 90,000 crore. In this regard, more than 80 crore people will be provided 5 kg free wheat or rice per month along with 1 kg free whole chana (pulses) to each family per month.