Can you answer a question on – Pradhan Mantri Jan Dhan Yojna (PMJDY)?

Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Jan Dhan Yojana

What comes to your mind when you read ‘Pradhan Mantri Jan Dhan Yojana’?

As the name suggests, ‘Dhan’ is related to finance or money, ‘Jan’ conveys a meaning that it is for the people and ‘Pradhan Mantri’ gives us an idea that it is launched by the Prime Minister.

This post aims at providing you insights into Pradhan Mantri Jan Dhan Yojana (PMJDY) and its benefits. Keep reading to gain valuable knowledge about this financial inclusion scheme. After reading this post, you will be in a position to answer any question based on the Pradhan Mantri Jan Dhan Yojana (PMJDY).

What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?             

  • Pradhan Mantri Jan Dhan Yojana (PMJDY) is the most successful financial inclusion scheme, launched on August 28, 2014. Financial inclusion is the delivery of financial services at affordable costs to low-income segments of society.
  • The main objective of this scheme is ‘empowering the poor and the small by offering them choice and opportunity’.
  • The scheme envisages access to financial facilities namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, and Pension, in an affordable manner. PMJDY accounts can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet with zero balance.
  • Phase I & II of PMJDY: There are three key objectives of phase-I (August 15, 2014- August 14,2015)
    • Universal access to banking facilities
    • Ensuring financial literacy
    • Providing basic banking accounts with overdraft facility of Rs.5000 after six months and RuPay Debit card

Three key objectives of phase-II (August 15, 2015, up to August 15, 2018) entail

  • Creation of Credit Guarantee Fund for coverage of defaults in overdraft A/Cs
  • Micro insurance
  • Unorganized sector pension schemes

Important features of PMJDY are as follows:

  • Once an account is opened, the account holder gets a debit card under RuPay Scheme.
  • Account holders will be provided zero-balance bank account, in addition to accidental insurance cover of Rs.1 lakh
  • The account holder gets Rs.30,000 insurance coverage from LIC.
  • Mobile banking through National Unified USSD Platform (NUUP) and easy transfer of money across India
  • Beneficiaries of Government schemes will get Direct Benefit Transfer in these accounts
  • After Six months of the opening of the bank account, holders can avail overdraft facility up to Rs.5000.

 Impact of Pradhan mantra Jan Dhan Yojana

For common man

  • Anyone who does not have an account will get a zero balance account
  • Beneficiaries of Government schemes will get subsidies through Direct Benefit Transfer
  • Easy to get loan directly from financial institutions

 For business

  • More people will engage in shopping via debit cards, thereby reducing time, manpower and risk involved in managing cash transactions.
  • Market research and analysis will be streamlined
  • As of March 15, 2016, the scheme has mobilized approximately INR 335 billion through 210 million new bank accounts.

For the Government & banking institutions

  • Banks will get new customers, thereby increasing the money inflow.
  • These customers may result in potential clients for other banking services like loans.
  • Let’s go through what some of the banking personnel have to say about PMJDY: “900 accounts out of 1,540 are of females. If it is convenient, we collect deposits from their houses”, said a BM in Bhadrak, Odisha. “Non-skilled labourers have greatly benefited. They save out of their daily wage income” – BM, Ghazipur, U.P.

Statistics of Pradhan Mantri Jan Dhan Yojana (as on June 01, 2016)

S.No No. of Accounts No. of RuPay Debit Cards Aadhaar Seeded Balance (in accounts)  % of Zero Balance Accounts
Rural Urban Total
1 Public Sector Banks 9.67 7.63 17.30 14.58 8.49 30143.73 25.92
2 Regional Rural Banks 3.35 0.55 3.90 2.74 1.32 6859.87 21.93
3 Private Banks 0.50 0.31 0.81 0.77 0.32 1408.20 37.75
Total 13.52 8.49 22.01 18.09 10.14 Rs. 38,411.80 crore (US$5.7 billion) 25.65

Source: Wikipedia (All figures in Crores)

Milestones achieved under PMJDY 

  • Banks have opened 17.74 Crore accounts under PMJDY with the deposit of more than 22000 crores.
  • More than 1.26 lakhs Bank Mitras have been deployed
  • 131012 Mega Financial Literacy camps were organized by banks under PMJDY.
  • 847 claims of life cover of Rs.30000 and 389 claims of accident insurance cover of Rs. 1 lakh have been successfully paid.
  • As on August 22, 2015, 8.17 crore beneficiaries have been enrolled under the Pradhan Mantri Suraksha Bima Yojana and 2.76 crore have been enrolled under Pradhan Mantri Jeevan Jyoti Bima Yojana.

(Source: Banks)

Stay tuned for more updates on various schemes launched by the Government. Boost your general awareness preparation for competitive exams.

Wishing you all the best on behalf of Team CL!