Pradhan Mantri Jan Dhan Yojana: A MEGA effort in Financial Inclusion !!


Dear Aspirants,

Pradhan Mantri Jan Dhan Yojana was launched with a BANG! Let us understand and explore the scheme in detail .

Financial Inclusion; A Retrospective

According to the Census -2001, 35.5 % of the total population of India had access to banking facilities. As per the latest census 2011, 58.7% population had access to banking facilities. Despite governments’ various initiatives to increase the percentage of population having access to banking facilities there is only 23.2% increase in the people having access to banking facilities in the last decade which is a cause of grave concern.

Though the core objective of Indian economy since independence has been social welfare and various governments have shown commitments towards this cause also through various initiatives ,like Nationalization of Banks, introduction of the concept of RRBs and use of technology in the banking sector etc. , but still a very huge portion of the Indian population is still deprived of the very basic banking facilities. This means that the economic empowerment of the large chunk of population in India is still left out and without their inclusion in a financial manner, the economic growth will ever remain a dream.

Keeping precisely these things in view, the RBI started the concept of Financial Inclusion in 2005.The concept of branchless banking through Bank Mitr( Business Correspondent)in 2006. Another major step was taken in 2011 through ‘Swabhiman campaign’ with a target of covering 74000 unbanked villages ( having population of less than 2000 people.

The latest effort in the direction of Financial Inclusion is Pradhan Mantri Jan Dhan Yojana that was launched by Prime Minister Narendra Modi on 28th August 2014 across the nation simultaneously.

Pradhan Mantri Jan Dhan Yojana


The objective is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups.

This deep penetration at affordable cost is possible only with effective use of technology


The comprehensive financial inclusion of the excluded section so far is proposed to be covered by 14th August 2018 through PMJDY by executing it in the 6 pillars based mission mode.

The six pillars of the PMJDY are as follows:

1.Universal access to banking facilities: This will involve mapping of each district in Sub Service Area ( SSA) so that people can have access to banking facilities within a reasonable distance of 5 km.

2.Providing Basic Banking Accounts with overdraft facility and RuPay Debit card to all households: This will involve opening of bank accounts in all the uncovered households.

3.Financial Literacy Programme: This will involve giving access of Financial information and providing with the financial facilities.

4.Creation of Credit Guarantee Fund: This will involve creation of CGF for covering the defaults in overdraft accounts.

5.M i c r o – I n s u r a n c e :This will involve providing micro insurance to all eligible and willing people.

6.Unorganized sector Pension schemes like Swavalamban: This will involve facilitating the eligible people with the beneficial schemes like Swavalamban.

The above objectives would be achieved in two phases;

Phase –I (15th August -2014 to 14th August -2015) will cover the following objectives:

  • Universal access to banking facilities:
  • Providing Basic Banking Accounts with overdraft facility and RuPay Debit card to all households:
  • Financial Literacy Programme:

Phase –II (15th August 2015 to 14th August 2018) will cover the following objectives.

  • Creation of Credit Guarantee Fund:
  • M i c r o – I n s u r a n c e :
  • Unorganized sector Pension schemes like Swavalamban:



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

Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria.

  • Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana
  • Aadhaar Card.
  • Voter ID Card,
  • Driving License,
  • PAN Card,
  • Passport
  • NREGA Card.


  • Interest on deposit.
  • Accidental insurance cover of Rs.1.00 lac
  • No minimum balance required.
  • Life insurance cover of Rs.30,000/-
  • Easy Transfer of money across India
  • Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
  • After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
  • Access to Pension, insurance products.
  • Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
  • Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.


The PMJDY is surely a major initiative by the Modi Government and looking at the progress details available so far, it seems that its going to create a sizable impact in the overall growth and economic empowerment of the AAM ADAMI!

Happy learning!