Pradhan Mantri Jan Dhan Yojana
The government has asked banks to expand account holders’ access to micro-credit and micro-investment options, such as flexi-recurring plans, under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.
PMJDY – The National Mission for Financial Inclusion has been successfully implemented for seven years.
Salient Feature of Scheme:
- The system will cover all homes, whether rural and urban, across the country. For 15 crore poor people, bank accounts would be opened.
- After 6 months of acceptable operation in the account, all bank accounts opened under the scheme will be eligible for an overdraft of Rs 5,000 for Aadhar-linked accounts.
- Issuance of a RuPay Debit Card with a built-in personal accident insurance coverage of Rs 2 lakh. For PMJDY accounts opened after August 28, 2018, the coverage amount has been enhanced to Rs. 2 lakh.
- Business correspondents would be paid a minimum of Rs 5,000 per month as the last link between account holders and the bank.
Implementation of the scheme:
The mission will be carried out in two stages:
Phase I lasted from August 15, 2014, through August 14, 2015.
- All households in the country have access to banking services through a bank branch or a fixed location Business Correspondent (BC) within a reasonable distance.
- To provide a RuPay Debit Card with an embedded Rs 1 lakh accident insurance cover to all households with at least one basic banking account.
- A village-level financial literacy programme will be implemented.
- Expansion of Direct Benefit Transfer (DBT) through beneficiaries’ bank accounts under various government initiatives.
- The issuance of a Kisan Credit Card is also being considered.
Phase II lasted from August 15, 2015, to August 14, 2018.
Providing them with micro-insurance.
Swavalamban through the Business Correspondents is an example of an unorganized sector pension programm.
Phase III – after August 14, 2018
- The flagship financial inclusion initiative (PMJDY) will focus on “every family to every adult” opening accounts.
- The existing OD limit of Rs 5,000 will be increased to Rs 10,000.
- For OD up to Rs 2,000, there would be no conditions attached.
- The age limit for using the OD facility will be raised from 18 to 65 years old.
Benefits of PMJDY:
- The interest earned on the deposit in the PMJDY account will be substantial.
- In addition, the PMJDY account would be covered by a Rs. 1 lakh insurance policy.
- Under PMJDY, the claim under Personal Accidental Insurance shall be payable if the RuPay Cardholder has completed at least one successful financial or non-financial customer transaction at any Bank Branch, Bank Mitra, ATM, POS, E-COM, etc. Channel both intra and inter-bank, and Bank Customer/RuPay Cardholder transacting at other Bank Channels within 90 days prior to the date of the accident, including.
- It’s a no-frills account, which means there’s no requirement to keep a minimum balance in your PMJDY account.
- A life insurance of Rs. 30,000 will be paid out in the event of the beneficiary’s death, provided the eligibility criteria are met.
- Money can be effortlessly transferred between accounts in India.
- People can quickly obtain government benefits without having to go through a middleman, and the benefits will be transferred directly to their PMJDY account.
- After six months of satisfactory account management, account holders are eligible for an overdraft of up to Rs.5000.