Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Print Friendly, PDF & Email

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Recently in the last week of September, ‘Pradhan Mantri Jan-Dhan Yojana (PMJDY) – National Financial Inclusion Mission’ has completed 7 years of its successful implementation.

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched in the year 2014. Its objective was to ensure access to financial products and services at affordable cost and use of technology for lower cost and wider reach.

It was initially introduced for a period of 4 years, but was later extended with some modifications.

Priority was given to every unbanked adult instead of every family.

Free accident insurance cover on RuPay card has been increased from Rs 1 lakh to Rs 2 lakh for PMJDY accounts opened after August 28, 2018.

The limit of overdraft facility has been increased from Rs 5,000 to Rs 10,000. The upper age limit for overdraft has been increased from 60 to 65 years.

Achievements so far

  • Total PMJDY accounts – 43.04 crore (Rural & Semi Urban: 66.69% & Female: 55.47%)
  • 6 percent PMJDY accounts are in working condition. This shows that most of these accounts are being used regularly by the customers.
  • In comparison to August 2015, there has been a growth of about 6.38 times in deposits in August 2021 with accounts growing 2.4 times.
  • Direct Benefit Transfer (DBT) through PMJDY accounts has ensured that every rupee is being channeled to its intended beneficiary, and preventing systemic leakage.

Basic Principles:

  • Connecting un-served people to banking: Opening a Basic Savings Bank Deposit (BSBD) account with minimal paperwork, provision of e-KYC, zero balance and zero charges etc.
  • Making the unsecured safe: Issuance of indigenous debit cards with free accident insurance.
  • Financing of the un-financed: micro insurance, overdrafts for consumption, micro pensions and micro loans.

6 pillars of PMJDY

  1. Universal access to banking services.
  2. Basic savings bank account with overdraft facility of Rs.10,000 per eligible adult.
  3. Financial Literacy Program.
  4. Creation of Credit Guarantee Fund.
  5. Microinsurance.
  6. Pension scheme for the unorganized sector.

Source – PIB

Download Our App




Open chat
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes