Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion

Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion

Pradhan Mantri Jan Dhan Yojana (Prime Minister’s People’s Wealth Scheme) is a financial inclusion program of the Government of India open to Indian citizens (minors of age 10 and older can also open an account with a guardian to manage it), that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi. He had announced this scheme on his first Independence Day speech on 15 August 2014.

Under this scheme 15 million bank accounts were opened on inauguration day. The Guinness Book of World Records recognized this achievement.

Basic Motive of Scheme

• Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
•  Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakh
•  Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit

Benefits of Scheme

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• Insurance Benefits

The account holders under this scheme will get an accidental insurance cover of Rs 1 lakh (enhanced to 2 lakh for new accounts opened after 28.08.2012) and a life cover of Rs 30,000 (if the account is opened between 15.8.2014 to 31.1.2015) – payment on the death of the beneficiary (subject to conditions).

• Loan Benefits

The account holders under this scheme can avail an overdraft facility upto Rs 10,000. This is available against one account per household. The quantum of the loan may look small but definitely is a boon to those below the poverty line and would enable them to reinvest this in more profitable avenues.

• Mobile Banking Facility:

Enabling carrying out transactions through a mobile phone facilitates such account holders in checking of balance and also transferring funds with ease across India. The other benefits being:

1. Pradhan Mantri Jan Dhan Yojana provides each beneficiary with basic banking accounts with a debit card with inbuilt accident insurance.
2. No minimum balance is required for opening an account under this scheme. The beneficiary can open his/her account in any bank branch or Business Correspondent outlet at zero balance.
3. The scheme covers both the urban as well as rural areas and provides an indigenous Debit Card (RuPay card) to each of its account holders.
4. PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

Achievements under PMJDY- As on 19th Aug’2020

1. PMJDY Accounts-

• As on 19th Aug’20 Number of Total PMJDY Accounts: 40.35 Crore; Rural PMJDY accounts: 63.6%, Women PMJDY accounts: 55.2%
• During the first year of scheme 17.90 crores, PMJDY accounts were opened

2. Deposits under PMJDY accounts-  

• Total deposit balances under PMJDY Accounts stand at Rs. 1.31 lakh crore.
• Average deposit per account is Rs. 3239.

3. Rupay Card issued to PMJDY account holders-

• Total RuPay cards issued to PMJDY account holders: 29.75 Crore.

Relief Package announced by Government

Pradhan Mantri Garib Kalyan Package  (PMGKP) for PMJDY women beneficiaries: Under this scheme an amount of Rs. 500/- per month for three months (April’20 to June’20), was credited to the accounts of women account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY). A total of Rs. 30,705 crore has been credited in accounts of women PMJDY account holders during April-June, 2020.

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