PMJDY accounts surpass 50 crore, deposits touch ₹2 lakh cr

PMJDY accounts surpass 50 crore, deposits touch ₹2 lakh cr

Subject: Economy

Section: Monetary Policy

PMJDY Achievements and Deposits

• PM Jan Dhan Yojana (PMJDY) celebrates nine years, crossing 50 crore bank accounts.
• Launched on August 28, 2014, with the aim of financial inclusion for all.
• Total deposits in PMJDY accounts exceed ₹2 lakh crore.
• The scheme focuses on providing access to banking facilities, credit, insurance, and pension to the excluded sections.

 Six Pillars of the Scheme

• Universal access to banking services: Branch and Banking Correspondent’s.
• Overdraft Facility: Basic savings bank accounts with an overdraft facility of Rs. 10,000/- to every eligible adult.
• Financial Literacy Programme: Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, and using basic mobile phones for banking.
• Creation of Credit Guarantee Fund: To provide banks with some guarantee against defaults.
• 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.

Promoting Micro Insurance and Financial Literacy

• The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana are key micro insurance schemes.
• Focus on persuasion, not compulsion, through financial literacy camps and awareness drives.
• Coordination with field-level ministries, such as Anganwadi and Asha workers, for better outreach.
• Exploration of databases like the E-Shram portal to identify uncovered individuals for scheme benefits.

Enhancing Financial Services Access and Digital Payments

• Significant drop in zero balance accounts from 58% (March 2015) to 8%, indicating increased usage.
• Efforts to enhance infrastructure for digital payments through Rupay cards and UPI.
• Over 34 crore account holders issued Rupay cards for digital transactions.

Overdraft Facility and Demographic Breakdown

• 32 lakh account holders utilized overdraft facilities, amounting to ₹370 crore.
• The overdraft limit was raised from ₹5,000 to ₹10,000 in August 2018, providing more financial flexibility.
• The age limit for overdraft was extended from 60 to 65 years, benefiting a broader demographic.

Demographic breakdown: 56% women account holders, 67% accounts in rural and semi-urban areas, bringing financial services to underserved regions.