Pradhan Mantri Jan Dhan Yojana (PMJDY)

Subject: Governance Scheme

Context: Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completes eight years of successful implementation

Concept:

Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
PMJDY was announced by Prime Minister in his Independence Day address on 15th August 2014. While launching the programme on 28th August,

Objectives:

Ensure access of financial products & services at an affordable cost
Use of technology to lower cost & widen reach
Basic tenets of the 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 lakh
Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit

6 pillars:

Universal access to banking services
Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every eligible adult
Financial Literacy Programme
Creation of Credit Guarantee Fund
Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
Pension scheme for Unorganized sector