Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Launched on August 28, 2014, under the National Mission for Financial Inclusion by the Government of India.
- Aimed to provide universal access to banking facilities and promote financial literacy among the unbanked.
Objectives:
- Ensure financial inclusion and access to basic banking services for every household.
- Provide a bank account for every household, along with a debit card, overdraft facility, and access to credit, insurance, and pensions.
Key Features:
- Zero-Balance Savings Account: Allows people to open a basic savings account without the requirement of maintaining a minimum balance.
- RuPay Debit Card: Provides an indigenous debit card for cashless transactions and basic banking.
- Overdraft Facility: Up to ₹10,000 overdraft facility available after six months of satisfactory account operation.
- Accidental Insurance: Free accident insurance cover of ₹1 lakh (₹2 lakh for accounts opened after August 28, 2018).
- Life Insurance Cover: One-time life cover of ₹30,000 for beneficiaries who opened accounts before January 26, 2015.
- Direct Benefit Transfer (DBT): Enables direct transfer of subsidies and welfare benefits to beneficiaries’ accounts.
Achievements (as of recent data):
- Over 50 crore accounts opened, with 56% of them belonging to rural areas.
- A large portion of the beneficiaries are women, reflecting the scheme’s success in fostering gender-inclusive financial inclusion.
- Significant increase in total deposits, with balances exceeding ₹2 lakh crore.
Impacts and Benefits:
- Financial Inclusion: Brought millions of unbanked people into the formal financial sector, especially in rural areas.
- Increased Savings: Encouraged the habit of saving, especially among the economically weaker sections.
- Economic Empowerment of Women: A large percentage of account holders are women, supporting gender empowerment.
- Improved Transparency and Efficiency: Reduced leakages in government subsidies and welfare payments via DBT.
- Enhanced Financial Literacy: Promoted awareness about banking services and financial management.
Challenges:
- Issues with inactive accounts due to low usage among certain beneficiaries.
- Operational challenges in remote areas and ensuring continued financial literacy.
- Addressing technological and infrastructural constraints to facilitate account use.
Way Forward:
- Improve financial literacy to encourage active account use.
- Leverage digital banking to improve accessibility in remote regions.
- Integrate PMJDY accounts with more welfare schemes for enhanced utility.
PMJDY is a landmark step in financial inclusion, empowering millions by providing access to formal banking services. It continues to play a crucial role in economic upliftment and socio-economic equity across India.
