Pradhan Mantri Jan Dhan Yojana(PMJDY) is the vision of our Prime Minister Narendra Modi, who launched the scheme from the ramparts of Red Fort on 15th August 2014. To uplift the rural section of our society, PM Modi pledged to connect the poorest citizens with the facility of bank accounts through the launch of this Yojana.
The Yojana is one of the biggest financial inclusion initiatives that connected millions of Indian families who had mobile phones but no bank accounts. After 8 years of its launch, India has witnessed a transformational change in financial inclusion sector that has strengthened the weaker sections of our society
Six important pillars of PMJDY
- It aims to provide universal access to banking financial services to the vulnerable sections of our society.
- A credit guarantee fund to be created to overcome any negligence in overdrafts that is extended to the account holders of PMJDY
- A Financial Literacy program to educate the masses about the importance of banking services
- The Yojana also aims to provide a pension scheme for the unorganised sector that includes rural labourers, factory workers, fisherman etc.
- A Basic savings Bank account would be opened with an overdraft facility of Rs. 10,000 to every household
- A Life insurance cover of Rs. 30,000 to be provided to the deceased family on the death of the assured.
- A basic Savings bank account would be opened for every unbanked person
- The PMJDY accounts do not require any minimum balance in it and interest would be earned on its deposit
- The beneficiaries under the scheme will get a RuPay Debit Card with an accidental insurance cover of Rs. 1 lakh.
- The PMJDY account holders are eligible for Direct Benefit Transfer(DBT), Pradhan Mantri Jeevan Jyoti Beema Yojana(PMJJBY), Atal Pension Yojana(APY), Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Micro Units Development & Refinance Agency Bank (MUDRA) scheme
Achievements in last 8 years
- The number of bank accounts have been increased from 17.9 crore in 2015 to 46.25 crore in 2022
- Out of the total increase percentage, the total number of accounts in rural areas is upto 67 percent.
- The women account holders have increased from 15 percent in 2015 to 56 percent in the present date.
- 46.40 crore beneficiaries have been banked so far with a total balance of Rs. 172,539.60 crore
- So far, about 6.55 lakh bank Mitras have been delivering services in the country.
- The statistics of PMJDY shows a three fold growth in the number of PMJDY accounts.
On the 8th anniversary of PMJD, the Finance Minister Nirmala Sitaraman said that,
“Financial inclusion is a major step towards inclusive growth which ensures the overall economic development of the marginalised sections of the society. The success of the PMJDY since August 28, 2014 is reflected in terms of opening over 46 crore bank accounts with deposit balance of Rs 1.74 lakh crore with its expanded coverage to 67% rural or semi-urban areas as well as 56% of women Jan Dhan account holders.”
New features of the Scheme
- The focus of the aim of PMJDY yojana has been shifted from ‘every household’ to ‘every unbanked adult’
- The accident insurance cover guaranteed on RuPay cards has been increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28th August 2018.
- The overdraft limit has been doubled to Rs. 10,000 from Rs. 5000
- Also the upper age limit for Overdraft facilities has been increased from 60 to 65 years
The launch of PMJDY has been a major transformational step towards the economic development of the marginalized sections of our society. Although a major part of rural areas still lacks financial literacy. The government should ensure that the rural population is educated about the benefits of the scheme. Also, digital security is required to ensure no fraudster can befool the rural poor.