The government of India flagship financial inclusion plan Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed 9 years of its successful implementation . The PMJDY was announced by Prime Minister Narendra Modi in his Independence Day address on 15th August 2014 to provide universal banking services for every unbanked adult . However the scheme was officially launched on 28th August 2014. The slogan of the scheme is "Mera Khaata, Bhagya Vidhata" (meaning "My account, fortune maker"
Background to the PMJDY
The Pradhan Mantri JanDhan Yojana was earlier called the Swbhiman scheme .
The Swabhiman scheme was introduced in 2010 on the recommendation of the High Level Committee on Lead Bank scheme set up by the Reserve Bank of India (RBI) in 2009 . The chairman of the High Level Committee on Lead Bank was Usha Thorat,then deputy governor of RBI.
The Swabhiman Scheme was part of the National Mission for financial Inclusion launched by the government . Under the National Mission for financial inclusion at least one member of a family which does not have bank accounts shall be included in the organised financial system (e.g banks)
Financial Inclusion aims to provides the following facilities;
- A specially designed saving account named Basic Savings Deposit Accounts(BSBDA),
- A simplified KYC (Know your customer) was required for opening an account.
- Remittance facilities(fund transfer) to the account holder,
- Insurance facility ,
- Pension facility
Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
The Swabhiman scheme aimed to provide basic banking service in every village having a population of 2000 through banking outlets by March 2012.
However due to inadequacies in the Swabhiman scheme the scheme was revamped and renamed as PMJDY.
Main Features of PMJDY
- Unlike the Swabhiman scheme which aimed to open a bank account of a member of a family the focus is now to open a bank account of every adult who doesn't have a bank account.
- Under the PMJDY, BSBDA(Basic Saving Bank Deposit Account) is offered to account holders .The BSBDA account was earlier known as No- frill accounts.
- According to the RBI a person can open only one BSBDA account in a Bank.
- There is no requirement to maintain any minimum balance in PMJDY accounts.
- Being a savings account bank pays interest on the deposit .
- A Rupay Debit card is provided to the PMJDY account holder.
- The RuPay Debit card under PMJDY provides an accidental death insurance cover of Rs one lakh to the account holder . Accounts opened after 28 August 2018 the accidental death insurance benefit has been increased to Rs 2 lakhs.
- An overdraft facility up to Rs. 10,000 to eligible account holders is available.(This is an exception as Overdraft facility is a feature of Current accounts. The BSBDA account is a saving accounts. )
- PMJDY accounts are eligible for Direct Benefit Transfer (DBT),
- Insurance facilities are offered through two yojana ;Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY),
- Pension schemes is offered through Atal Pension Yojana (APY)
- For credit facility loans are provided under the Micro Units Development & Refinance Agency Bank (MUDRA) scheme.
Achievements of the PMJDY scheme
- The first district in India to achieve 100% financial inclusion was Eranakulam district of Kerala.
- The first state to achieve 100% financial inclusion was Kerala in 2007.
- According to the government of India following are the achievements of PMJDY as on 16 8 2023:
- 50.09 crore people have opened Jan Dhan Accounts.
- Among these accounts, approximately 55.5% belong to women, and 67% have been opened in Rural / Semi-Urban areas.
- The cumulative deposits in these accounts Rs. 2,03,505 crore
- 33.98 crore RuPay cards have been issued to these accounts.