A nationwide project for financial inclusion called the Pradhan Mantri Jan Dhan Yojana (PMJDY) seeks to ensure that everyone has affordable access to financial services like banking, savings and deposit accounts, remittance, credit, insurance, and pensions. An account may be opened at any Business Correspondent (Bank Mitr) location or bank branch. The balance of any accounts created using PMJDY is zero. However, to obtain a checkbook, the account holder must maintain a minimum amount.
On August 15, 2014, Prime Minister Shri Narendra Modi made the announcement of the Pradhan Mantri Jan Dhan Yojana (PMJDY), one of the largest financial inclusion programs in the history of the world, from the vantage point of the Red Fort. The Prime Minister hailed the occasion as a festival to celebrate the release of the underprivileged from a cycle of poverty when the scheme was introduced on August 28. Shri Narendra Modi cited the proverb Sukhasya Moolam Dharma, Dharmasya Moolam Artha, and Arthasya Moolam Rajyam, which places the responsibility for involving people in economic activities on the government. The Prime Minister declared, “Our Government has embraced this duty,” and the Government quickly delivered on its commitment.
Indicator Pradhan Mantri The Jan Dhan Yojana, a nationwide initiative to promote financial inclusion, employs an integrated approach to attain complete financial inclusion and provide banking services to every household in the country. The project makes sure that there are many financial services available, including fundamental savings accounts, need-based credit, remittance services, insurance, and pensions.
The accomplishments made possible by the Pradhan Mantri Jan Dhan Yojana have also been recognized by Guinness World Records. In one week, as part of the Financial Inclusion Program, “the Department of Financial Services, Government of India, received the largest number of bank accounts established, which is 18,096,130.”
In comparison to the initial goal of opening bank accounts for 7.5 crore unbanked households in the nation by January 26, banks had already established 12.54 crore accounts as of January 31, 2015, after conducting a survey of 21.06 crore families with balances over Rs 10,000 crore. The objective was created following an assessment of the country’s 21,02 crore dwellings. Currently, the entire population is protected. A total of 60% of the accounts created are in rural areas, while 40% are in urban ones. Women control over 51% of accounts.
Dhan Mantri Every household should have at least one basic banking account, and the Jan Dhan Yojana offers a foundation for universal access to banking services as well as access to credit, insurance, and pension options. It applies to both urban and rural communities, and anyone who opens an account will receive an indigenous debit card (RuPay card). Accounts can be opened with no balance at any bank branch or Business Correspondent (Bank Mitr) location. Each bank account is on the Core Banking System (CBS) of the institution. Even the most basic feature phones may handle mobile banking through the use of USSD. The availability of a call center and a toll-free number is nationwide.
By offering basic banking accounts with accident insurance-free debit cards, PMJDY aims to ensure financial inclusion for everyone. The 5,000 rupee overdraft cap for Aadhar-connected accounts and the RuPay debit card’s integrated 1 lakh rupee accident insurance are two of PMJDY’s outstanding features. Also, for accounts opened between August 15, 2014, and January 26, 2015, the qualifying beneficiaries may choose to get a 30,000 Rupee life insurance policy. The Pradhan Mantri Jan Dhan Yojana’s unique feature is that when an account has been open for six months, the account user would be eligible for an overdraft of up to Rs 5,000.
For a better grasp of the entire system, the program includes a financial literacy component that seeks to reach the village level. The Mission also intends to increase Direct Benefit Transfer (DBT) through the recipients’ bank accounts under many government programs. The Kisan Credit Cards are connected with the RuPay platform as well (KCC). The second phase of the strategy would also include microinsurance for the general public and unorganized sector pension plans like Swavalamban through business correspondents.
A systematic monitoring system, from the central level to the district level, is in place for the Pradhan Mantri Jan Dhan Yojana. Together with the Steering Committee and the Mission Director, the Finance Minister is the mission’s leader in the Centre. A District Implementation Committee oversees the program in the districts, while a State Implementation Committee oversees it at the state level.
As a result, the Pradhan Mantri Jan Dhan Yojana shows what a government is capable of when it is dedicated to the welfare of its citizens in addition to offering a crucial example of governance in action.