Announced on 15th August 2014, Pradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission for financial inclusion to ensure access to financial services, namely banking, savings and deposit accounts, remittance, credit, insurance, pension in an affordable manner.
Under this scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
Benefits under PMJDY:
One basic Savings Bank account is opened for unbanked person.
There is no requirement to maintain any minimum balance in these accounts.
Interest is earned on the deposit in PMJDY accounts.
Rupay Debit card is provided to PMJDY account holder.
An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
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.
The “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” aims to ensure that the excluded sections, such as weaker sections and low-income groups, have access to various financial services such as basic savings, loans, remittances, insurance, and pension.
It envisions universal banking access, with each household having at least one basic banking account.
Tenets of the scheme:
Banking the unbanked – Any Individual can Open a basic saving account with minimal Paper Work, relaxation in KYC requirements, e-KYC, 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 lakhs
Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.
Pradhan Mantri Jan-Dhan Yojana (PMJDY), has in excess of 472 million accounts with deposits in excess of ₹1.75 lakh crore, helping catalysing the government’s mission for financial inclusion, including its social security programmes.
The world’s largest financial inclusion programme is primarily driven by public sector banks (PSBs) which account for 79% of total PMJDY accounts and 77.5% of total deposits.
Regional rural banks (RRBs) and private banks have also contributed in this mission. Expectedly, India’s largest lender, the state-owned State Bank of India (SBI) leads with at least 135 million accounts.
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