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Pradhan Mantri Jan Dhan Yojana Benefits

Pradhan Mantri Jan Dhan Yojana is a national mission launched by the Government of India in 2014 to promote financial inclusion. The scheme aims to provide affordable access to financial services like bank accounts, remittances, credit, insurance and pensions.


Pradhan Mantri Jan Dhan Yojana Benefits

Overview of PMJDY

PMJDY was launched by Prime Minister Narendra Modi on 28th August 2014 during his first Independence Day speech. It is the world's largest financial inclusion program that aims to provide universal access to banking facilities for all households in the country.

Under PMJDY, a basic savings bank account can be opened at any bank branch or business correspondent outlet. The BSBD account can be opened by individuals without having any other existing bank account. As of March 2019, over 37 crore PMJDY accounts have been opened across public and private banks in urban and rural areas.

Key Features and Benefits

Some of the major features and benefits offered under PMJDY are:

  • No minimum balance requirement
  • RuPay debit card provided to account holders
  • Accident insurance cover of Rs 1 lakh (Rs 2 lakh for accounts opened after 28.8.2018)
  • Overdraft facility up to Rs 10,000
  • Eligibility for DBT, PM insurance schemes, pension schemes, MUDRA loans

In addition, PMJDY accounts allow holders to avail basic banking services like cash deposits and withdrawals, remittances, and balance enquiry through bank mitras in rural areas. The accounts come with inbuilt features of Mobile Banking, USSD, RuPay Card, MicroATM access, and Aadhaar linkage.

Benefits Details
Interest on deposits Interest is available at rates applicable to normal savings accounts
No minimum balance No requirement to maintain any minimum balance
Insurance Accident insurance cover of Rs 1 lakh (Rs 2 lakh for accounts opened after 28.8.2018)

Large-Scale Implementation

PMJDY has been implemented on an expansive scale across India to provide financial access to all. Some key stats regarding implementation are:

  • Over 37 crore PMJDY accounts opened as of March 2019
  • 55% Jan Dhan account holders are women
  • 99.99% households covered with at least one bank account
  • 35 crore RuPay debit cards issued till now
  • 83,000 rural banking outlets opened across India

Robust coordination between banks, government departments and agencies has enabled opening of PMJDY accounts, RuPay card issuance, account monitoring and seamless benefit transfers.

Impact of Financial Inclusion

PMJDY has created a noticeable impact on financial inclusion levels in India. Some major outcomes include:

  • Jan Dhan accounts have deposits over Rs 1.46 lakh crore
  • DBT transfers worth Rs 27,281 crore done via Jan Dhan accounts
  • 64% increase in institutional credit to micro units
  • Financial literacy levels improved across all demographics
  • Women empowerment due to joint account facility

By providing access to savings, credit, remittances at low cost, PMJDY has helped the poor and marginalized to join the formal banking system. It has led to growth in small savings and enabled DBT in COVID-19 relief schemes.

PMJDY Implementation Challenges

Despite success in expanding account ownership, there are some challenges in effective PMJDY implementation:

  • Dormancy in accounts due to low income levels
  • Need to raise customer awareness on account usage
  • Expanding access to credit, insurance facilities
  • Issues with biometric authentication for rural elderly
  • Strengthening of banking infrastructure in remote regions

Banks need to undertake regular outreach programs to promote active usage of accounts. Robust grievance redressal mechanisms also need to be instituted for seamless customer service.

Conclusion

Pradhan Mantri Jan Dhan Yojana has been instrumental in increasing access to banking services across urban and rural India. With 37 crore account holders, it has helped build financial security for millions by providing savings bank accounts, insurance cover and access to credit. Ongoing initiatives on digital payments and mobile banking will further widen the reach of financial services. Universal financial inclusion will pave the way for balanced economic and social development.

FAQ

Q1: What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?

A1: PMJDY is the National Mission for Financial Inclusion launched in 2014 to ensure affordable access to financial services like bank accounts, remittances, credit, insurance for all households in India.

Q2: How can I open a PMJDY account?

A2: You can open a PMJDY account at any bank branch or BC outlet by providing your Aadhaar, mobile number and other KYC documents. The BSBD account can be opened with zero balance.

Q3: What are the benefits of a PMJDY account?

A3: Key benefits include no minimum balance, accident insurance cover, RuPay debit card, overdraft facility, DBT receipts, access to credit, pensions and insurance schemes.

Q4: How many PMJDY accounts have been opened till date?

A4: As per latest data, over 37 crore PMJDY accounts have been opened across the country since the scheme's launch in August 2014.

Q5: Can I get a loan against my PMJDY account?

A5: Yes, PMJDY account holders are eligible for an overdraft of up to Rs 10,000 once satisfactory operations in account are observed.

Q6: Are there any charges for a PMJDY account?

A6: PMJDY accounts can be opened with zero balance. Account holders are not required to maintain any minimum monthly balance. However, service charges may apply as per RBI guidelines.

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