Jan Dhan Yojana
Context:
PM congratulates Jan Dhan Yojana beneficiaries on completion of 9 years of the transformative scheme.
Relevance:
GS-02, GS-03 (Government Policies and Interventions, Poverty and Hunger, Inclusive Growth)
Pradhan Mantri Jan Dhan Yojana:
- Pradhan Mantri Jan Dhan Yojana (PMJDY) stands as a pivotal initiative in the area of financial inclusion within India.
- PMJDY has laid the foundation for various people-centric economic endeavors, serving as the initial stride for numerous impactful schemes.
Objectives:
- The objectives of PMJDY focuses on ensuring widespread access to financial products and services, all at an affordable cost.
- This mission is achieved through the strategic utilization of technology, which not only curtails expenses but also widens the reach of these essential financial services.
- The program’s fundamental tenets encompass three key dimensions, each aimed at addressing a specific aspect of financial inclusion.
Features:
Financial Inclusion:
- It serves as a platform that ensures that every individual, particularly those who were previously left out, gains entry to essential financial services.
- These services encompass a spectrum of offerings, including basic banking facilities, savings and deposit accounts, remittance solutions, credit access, insurance coverage, and pension plans.
- The overarching objective is to make these financial provisions accessible and affordable to all strata of society.
Catalyzing Economic Endeavors:
- PMJDY has proven itself to be a bedrock upon which numerous people-centric economic initiatives have been constructed. Whether it is the Direct Benefit Transfer (DBT) system, financial aid during the Covid-19 pandemic, PM-KISAN, augmented wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), or the implementation of life and health insurance coverage, the initial stride for all these transformative endeavors commences with the provision of a bank account to every adult.
Banking:
- The scheme’s first dimension aims to extend banking services to those who previously remained excluded. This involves the establishment of basic savings bank deposit (BSBD) accounts with minimal procedural complexities. The Know Your Customer (KYC) norms are relaxed, and in some cases, even replaced by electronic KYC (e-KYC) for convenience.
- Account opening is facilitated through camp mode, reducing hurdles, and removing the requirement for an initial balance. Moreover, the accounts are maintained at zero balance, alleviating the financial burden on individuals. Charges for account maintenance are also eliminated.
Securing the Unsecured:
- The second dimension emphasizes the security of individuals through the issuance of Indigenous Debit cards.
- These cards enable cash withdrawals and merchant payments, augmented by the provision of free accident insurance coverage amounting to Rs. 2 lakhs. This step not only fosters financial security but also promotes digital transactions, aligning with the broader push towards a cashless economy.
Funding:
- The PMJDY seeks to address the financial needs of marginalized segments through diverse financial products.
- These offerings encompass micro-insurance, overdraft facilities for consumption, micro-pension schemes, and micro-credit options.
- This dimension aims to empower individuals by providing them with avenues for growth and stability.
