The Pradhan Mantri Jan Dhan Yojana (PMJDY), one of the world’s most extensive financial inclusion initiatives, recently marked its ninth year. This significant scheme was launched on August 28th, 2014, under the guidance of the Ministry of Finance, with the objective of delivering affordable financial services to the economically vulnerable and disadvantaged sections of society.
The Pradhan Mantri Jan Dhan Yojana: An Overview
PMJDY provides a universal platform for banking facilities, ensuring at least one basic bank account for every household. It also assures financial literacy and access to credit, insurance, and pension facilities.
This scheme aspires to widen banking services through branches and Banking Correspondents (BCs). It covers both rural and urban areas. Account holders receive an indigenous Debit Card (RuPay card), and there is no mandate to maintain any minimum balance in PMJDY accounts. An Accident Insurance Cover worth Rs. 1 lakh (boosted to Rs.2 lakh for new PMJDY accounts opened post August 28, 2018) is also provided with the RuPay card issued to PMJDY account holders.
One unique feature of this scheme is the provision of an overdraft facility of Rs. 10,000 to every eligible adult. Further, PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
Significance of the Pradhan Mantri Jan Dhan Yojana
PMJDY fosters Financial Inclusion, propelling inclusive growth through the provision of budget-friendly financial services to low-income and disadvantaged segments of the population. Using the Jan Dhan–Aadhaar–Mobile (JAM) architecture, seamless transfer of government benefits to everyday citizens has been made possible.
PMJDY has also been instrumental in bringing the savings of the underprivileged into the formal financial system, thus liberating them from the clutches of unscrupulous money lenders. It has played a considerable role in empowering women, with almost 55.5% of Jan Dhan accounts being owned by them.
Achievements of the Pradhan Mantri Jan Dhan Yojana
The PMJDY scheme has successfully inducted over 50 crore individuals into the formal banking system, with around 67% accounts opened in rural and semi-urban areas. Approximately 34 crore RuPay cards have been issued, offering an accident insurance cover of ₹2 lakh. The Guinness World Records recognized the success of PMJDY as the “Most bank accounts opened in one week as part of the Financial Inclusion Campaign”.
Other Government Initiatives to Promote Financial Inclusion in India
To augment financial inclusion, the government has launched initiatives such as the National Centre for Financial Education (NCFE), Unified Payments Interface, Micro Units Development and Refinance Agency (MUDRA), Small Finance Banks (SFBs), Payment Banks, and the Jan Dhan Darshak App.
The Pradhan Mantri Jan Dhan Yojana in Civil Services Examination
In the UPSC Civil Services Examination, questions related to PMJDY have indeed appeared in both Prelims and Mains. For instance, in 2015, candidates were asked about the purpose of launching the Pradhan Mantri Jan-Dhan Yojana. The correct answer was ‘promoting financial inclusion in the country’. Similarly, in the Mains exam in 2016, a question was asked regarding the necessity of PMJDY for bringing the unbanked to the institutional finance fold, and its role in the financial inclusion of poorer sections in Indian society.