PradhanMantri Jan Dhan Yojana (PMJDY), is financial inclusion program of Government of India. Applicable to 20 to 65 years age group. PMJDY aims to expand and make affordable access to financial services. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 15 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.
On inauguration day, 15 million bank accounts were opened. The Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle. The Guinness Book of World Records recognized this achievement. Stating: “The most bank accounts opened in one week as a part of the financial inclusion campaign is 18,096,130. The Government of India achieved it from August 23 to 29, 2014”.
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PradhanMantri Jan Dhan Yojana
Against the original target of the opening of PradhanMantri Jan Dhan Yojana, bank accounts for 7.5crore uncovered households in the country by 26th January 2015. Banks have already opened 12.54 crore accounts as on 31st January 2015. After conducting a survey of 21.06 crore households with deposits exceeding Rs 10,000 crores. The country set the target after conducting a survey of 21.02 crore households. Today, we have achieved a 100% target. Out of the accounts opened, 60% are in rural areas and 40% are in urban areas.
PM Jan Dhan Yojana Features
Opening of no-frills accounts: The Bank account open under PMJDY does not require a minimum balance. And overdraft facility up to Rs. 5000 is also available after six months. Interest is on deposit. Free RuPay debit card for the account.
Relaxation on know-your-customer (KYC) norms: Person who does not have valid identification document can also open a bank account. The account called “Small Account”.
Engaging business correspondents (BCs): Account opening and bank transactions are through a business correspondent. Usually business correspondent appointed in the remote rural area where bank branches not present.
Use of technology: Bio-metric based account opening and transaction are available through a business correspondent. This helps illiterate people also do banking.
Direct Benefit Transfer: The beneficiary will government subsidies directly transferred. This reduces delay and leakage to get service.
Insurance: Rs. 1 lakh accident insurance cover. In addition, a Life Insurance cover of Rupees 30,000 is available to the eligible beneficiaries.
Impact of PradhanMantri Jan Dhan Yojana
Under the Pradhan Mantri Jan Dhan Yojana 2019, financial literacy programme which aims to take financial literacy up to village level is provided for better understanding of the whole mechanism. The Mission also envisages extension of Direct Benefit Transfer (DBT) under various Government Schemes through bank accounts of the recipients. Get RuPay platform link with the Kisan Credit Cards (KCC). Microinsurance to the people, and unorganized sector Pension schemes like Swavalamban through the Business Correspondents have also been included for the second phase of the programme.
The Pradhan Mantri Jan Dhan Yojana has a structured monitoring mechanism from Central to District level. At the Centre, Finance Minister is the Mission head along with a Steering Committee and a Mission Director.
Thus, Pradhan Mantri Jan Dhan Yojana not only serves as an important example of Governance in Mission Mode but also demonstrates what a Government can achieve if it is committed to the welfare of the people.