Pradhan Mantri Jan Dhan Yojna: Features, Financial Inclusion, and Challenges

Pages: 10 (2984 words) Published: March 22, 2015
Jan Dhan Yojna
Our Prime Minister Shri Narendra Modi, while addressing the nation on 15th August 2014, announced and briefed about the Pradhan Mantri Jan Dhan Yojna (PMJDY) which is the biggest financial inclusion initiatives in the world. The main objective of the PMJDY is to bring all the uncovered households of the country under banking channel. While launching the Scheme, the Prime Minister had desCroreibed the occasion as a festival to celebrate the liberation of the poor from a vicious cycle. The essay is divided in three parts as under:

(1) Features of the scheme and its progress report,
(2) Financial Inclusion: What and why,
(3) Challenges in PMJDY and suggestion for further improvement

1. Features of PMJDY and progress
Jan Dhan Yojna was announced on 15th August 2014. But before announcing the scheme, an extensive home work was done by new government at Centre. Shri Narendra Modi took oath as Prime Minister on 26th May 2014, and immediately thereafter he arranged for a survey, which was conducted in about 2.27 Lac Sub Service Areas (SSAs) in rural areas and wards in urban areas. It was completed in a record time of less than 4 months, as the scheme was launched on 28th August 2014. A separate organization structure has been set up to implement and monitoring the progress of Jan Dhan Scheme under the Finance Ministry and directly being overseeing by Finance Minster Shri Arun Jaitley. At the time of launching the scheme, the target was to cover 7.5 Crore households for account opening. The main features of the scheme are as under: PMJDY is National Mission for Financial Inclusion to ensure universal access to various financial services like availability of basic savings bank account, access to need based Croreedit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups on very low cost. Account can be opened in any bank branch or in Business Correspondent (Bank Mitra) outlet. Accounts under the scheme, are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance Croreiteria. Benefits under the Jan Dhan Yojna Bank Accounts: as the motive of the scheme is to cover all rural and urban households who are very poor and do not have bank account. Following benefits are provided under the accounts: Interest on deposit

Accidental insurance cover of Rs.1.00 lac
No minimum balance required.
Life insurance cover of Rs.30,000/-
Easy Transfer of money aCroreoss India
Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts. After satisfactory operation of the account for 6 months, an overdraft facility will be permitted Access to Pension, insurance products.

Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days. Overdraft facility upto Rs.5000/- is available one account per household, preferably Mahila (lady) of the household.

Achievements of the Jan Dhan Yojna Scheme: Jan Dhan Yojna has been featured in Guinness Book of World Records. A new world record has been Croreeated as Indian Government opened 1.8 Crore new bank accounts between August 23rd and August 29th, a feat which has never been achieved before, in any part of the world. On 20th January 2015, Shri Arun Jetley addressed the press conference and briefed the achievements of the scheme as under: At the time of launching the scheme, a target of 7.5 Crore opening bank accounts for uncovered households in the country was set. Banks have opened 11.50 Crore accounts after conducting survey of 21.02 Crore households in the country. Coverage of 99.74% of the surveyed households has been achieved. Out of the accounts opened, 60% are in rural areas and 40% are in urban areas. Share of female account holders is about 51%. Rupay cards have been issued to more than 10 Crore beneficiaries who will get a benefit of personal accidental insurance of Rs....

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