PM Jan Dhan Yojana
Why in the News?
Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completed nine years of successful implementation.
Quick Facts
Purpose: To ensure access to financial services like Banking, Remittance, Credit, Insurance, Pension in an affordable manner.
Overdraft facilities: Rs 10,000
Accident Coverage: Rs. 2 lakhs
Focus: Every Unbanked Adult
Objective
Ensure access of financial products & services at an affordable cost.
Use of technology to lower cost & widen reach.
PM Jan Dhan Yojana (PMJDY) Salient Features :
Background:
Launched in 2014, the PM JDY is a National Mission for Financial Inclusion.
Basic Tenants of Scheme:
Banking the unbanked
Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
Securing the unsecured
Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs
Funding the unfunded
Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.
Approach:
Accounts opened are online accounts in core banking system of banks.
Inter-operability through RuPay debit card or Aadhaar enabled Payment System (AePS)
Fixed-point Business Correspondents
Simplified KYC / e-KYC
in place of cumbersome KYC formalities
RuPay Card Insurance:
Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs for PMJDY accounts opened after 28.8.2018.
Overdraft facilities:
OD upto Rs 2,000/- (without conditions) and upper age limit for OD is 65 years.
Operative PMJDY Accounts:
As per extant RBI guidelines, a PMJDY account is treated as inoperative if there are no customer induced transactions in the account for over a period of two years.
Jan Dhan Darshak App:
A mobile application, was launched to provide a citizen centric platform for locating banking touch points such as bank branches, ATMs, Bank Mitras, Post Offices, etc. in the country.
PMJDY Accounts are eligible for
Direct Benefit Transfer (DBT)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Micro Units Development & Refinance Agency Bank (MUDRA) scheme
Atal Pension Yojana (APY)
