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Introduction:

Pradhan Mantri Jan Dhan Yojana (PMJDY) is one of the greatest financial related Yojana announce by the Prime Minister on 15th August 2014. This Yojna was announced to help needy individuals.

Reasons for Introducing this Scheme

Pradhan Mantri Jan Dhan Yojana is a national mission to provide banking services to all households in the nation. This scheme guarantees access to financial services to all poor people. The scheme also provides services like access to need-based credit, basic savings bank account, insurance and pension, remittances facility.

Record Made by the Scheme

Under the Pradhan Mantri Jan Dhan Yojana scheme, many bank accounts are open in one week and Guinness World Records has also recognised the achievements. It has certify that the “Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130  was achieved by the Department of Financial Services, Government of India.”.[1]

Number of Accounts Made

The first objective of the Yojana was to open 7.5 crore bank account till 26th January 2015 however banks have opened 12.54 crore accounts as on 31st January 2015. The inclusion of the set objective was practically 100% has been accomplish. Out of the records, 40% are in urban regions and 60% are in provincial zones. A portion of female record-holders is about 51%.[2]

Benefits of the Yojana

Pradhan Mantri Jan Dhan Yojana provides a universal banking service to every needed one. The main intention of the Yojana is to provide a bank account to poor people. In these bank accounts government directly sends money from various schemes for the development of poor people. The second benefit of the scheme is to give financial and banking knowledge to poor people and they should get used to financial transactions. This scheme covers both rural and urban areas. In this scheme, people who are eligible and made an account for the same would get Debit cards. The main feature of the scheme is accounts can be open with zero balance. The mobile banking system is available and even though basic feature phones can be used for this facility. A facility of call centre and a toll-free number is available nationwide.

PMJDY brings inclusion for all by providing basic banking accounts with a debit card with inbuilt accident insurance. PMJDY includes the Rupay Debit card with inbuilt Rs. 1 lakh accident insurance cover and Rs. 5,000 overdraft facility for Aadhar-linked accounts. Accounts opened between 15th August 2014 and 26th January 2015 will get life Insurance cover of Rupees 30,000. One more feature of this scheme is remaining active for 6 months; the account holder will become eligible for an overdraft of up to Rs 5,000.[3]

The financial literacy program is provided under this scheme to take financial literacy to the village level and for better understanding of the whole mechanism. The scheme is also a beneficiary extension of Direct Benefit Transfer (DBT) under various Government Schemes through bank accounts of the recipients.

The Pradhan Mantri Jan Dhan Yojana has a structured monitoring mechanism from Central to District level. At the Centre, Finance Minister is the Mission head along with a Steering Committee and a Mission Director. The program is monitored at State level by a State Implementation Committee and in the districts by a District Implementation Committee.[4]

Eligibility and Enrollment Process of Yojana

To open a Basic Savings Bank Deposit Account (BSBDA) with zero balance under PMJDY, you need to fulfill the following conditions:

(i) Be a citizen of India

(ii) Age: 10 years and above

(iii) Do not have a bank account

(iv) Jan Dhan Yojana Account Opening Form:

Along with any of the above documents, you must also submit a duly filled application form. It is a simple and small form that requires the following details to be filled in-

a) Basic identity details like name, address, Aadhaar number, PAN, occupation

b) Annual income

c) Number of dependents

d) Details of assets, if any

e) Existing bank account details of any family member/household

f) Existing bank account details of any family member/household

For enrollment of this Yojana, people can approach the government-approved banks. [5]

Conclusion

This scheme is very beneficial for poor people. It will help people to get used to financial transactions. This scheme will help increase financial literacy among people. This is the step towards digital India. Even during this Covid-19 pandemic, the government is transferring some amount of money directly into the bank account of the poor people. So it is a good scheme launched by the Prime Minister.


References:

[1] https://www.pmindia.gov.in/en/major_initiatives/pradhan-mantri-jan-dhan-yojana/

[2] Supra in 1st citation.

[3] See, Supra in 1st citation.

[4] Supra in 1st citation.

[5] https://www.pmjdy.gov.in/scheme


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