Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program launched by the Government of India on August 28, 2014. The scheme aims to provide affordable access to financial services like banking, savings, credit, insurance, and pensions for all citizens, especially those who are unbanked or financially excluded.
Key Objectives:
- Financial Inclusion: Ensure that every household has access to banking and financial services.
- Promote Savings: Encourage the habit of saving among people by providing them with zero-balance accounts.
- Access to Credit: Help the underprivileged access formal banking and credit services.
- Direct Benefit Transfers (DBT): Facilitate direct transfer of government subsidies and benefits into bank accounts, reducing leakages and corruption.
Key Features:
- Zero-Balance Bank Accounts:
- People can open savings bank accounts without the need to maintain a minimum balance.
- RuPay Debit Card:
- Account holders receive a RuPay debit card, which can be used for transactions and withdrawals.
- Accidental Insurance Cover:
- Account holders are provided with a free accidental insurance cover of ₹2 lakh.
- Overdraft Facility:
- After six months of satisfactory operation of the account, holders can avail of an overdraft facility of up to ₹10,000 for emergencies.
- Life Insurance Cover:
- An additional life insurance cover of ₹30,000 is provided to eligible account holders who opened their accounts before January 26, 2015.
- Mobile Banking:
- Easy access to mobile banking services for account holders, enabling them to check their balances, transfer funds, and perform other banking tasks.
- Direct Benefit Transfer (DBT):
- Government benefits and subsidies (such as LPG subsidies, scholarships, pensions) are directly transferred into Jan Dhan accounts.
- Financial Literacy Programs:
- Efforts are made to educate people about financial products and services, empowering them to make informed financial decisions.
Achievements:
- The scheme has brought millions of people, especially in rural and underserved areas, into the formal banking system.
- As of 2023, over 49 crore Jan Dhan accounts have been opened, with significant deposits, making it one of the largest financial inclusion initiatives in the world.
Benefits to Society:
- Reduction in Corruption: The DBT system reduces corruption by directly transferring benefits to beneficiaries’ bank accounts.
- Improved Access to Financial Services: People now have access to savings, credit, and insurance, which enhances their financial security.
- Empowerment of Women: Many accounts have been opened in the names of women, giving them more control over household finances.
