Pradhan Mantri Jan Dhan Yojana

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Pradhan Mantri Jan Dhan Yojana (PMJDY)
प्रधानमंत्री जन-धन योजना
PM Modi launches the Pradhan Mantri Jan Dhan Yojana.jpg
PM Modi launches the Pradhan Mantri Jan Dhan Yojana
Country India
Prime Minister Narendra Modi
Ministry Finance
Key people Arun Jaitley
Launched 28 August 2014; 9 years ago (2014-08-28)
Website www.pmjdy.gov.in
Status: Active

Lua error in package.lua at line 80: module 'strict' not found. Pradhan Mantri Jan-Dhan Yojana (IPA: Pradhān Mantrī Jana Dhan Yōjanā) (Hindi: प्रधानमंत्री जन धन योजना, English: Prime Minister's People Money Scheme) (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. This financial inclusion campaign was launched by the Prime Minister Narendra Modi on 28 August 2014[1] He had announced this scheme on his first Independence Day speech on 15 August 2014.

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme.[2][3] Guinness World Records Recognises the Achievements made under PMJDY, Guinness World Records Certificate says "The most bank accounts opened in 1 week as a part of financial inclusion campaign is 18,096,130 and was achieved by Banks in India from 23 to 29 August 2014". By May 2016, the scheme had opened 21.74 crore accounts, with Rs. 37,445 crore in deposits.

Investments

PM Modi commends bank officers and staff for successful roll-out of Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan - Dhan Yojana (Statistics as on 30 March 2016) (All Figures in Crores)[4]

S.No No Of Accounts No Of RuPay Debit Cards Aadhaar Seeded Balance In Accounts  % of Zero Balance Accounts
Rural Urban Total
1 Public Sector Banks 9.43 7.42 16.85 14.32 8.04 28139.17 27.74
2 Regional Rural Banks 3.26 0.54 3.79 2.69 1.16 6178.12 23.15
3 Private Banks 0.48 0.30 0.79 0.74 0.30 1354.72 40.34
Total 13.17 8.26 21.43 17.75 9.50 ₹35,672.01 crore (US$5.3 billion) 27.39

Purpose

In a run up to the formal launch of this scheme, the Prime Minister personally mailed to Chairmans of all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore (75 million) households and to open their accounts.[5] In this email he categorically declared that a bank account for each household was a "national priority".

The scheme has been started with a target to provide 'universal and clear access to banking facilities' starting with "Basic Banking Accounts" with overdraft facility of ₹5,000 (US$74)[6] after six months and RuPay Debit card with inbuilt accident insurance cover of ₹1 lakh (US$1,500) and RuPay Kisan Card. In next phase, micro insurance & pension etc. will also be added.[1]

Under the scheme:

  1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of ₹1 lakh (US$1,500) (to be given by 'HDFC Ergo').
  2. Those who open accounts by 26 January 2015 over and above the ₹1 lakh (US$1,500) accident claim will also be given life insurance cover of ₹30,000 (US$450) (to be given by LIC).
  3. After Six months of opening of the bank account, holders can avail ₹5,000 (US$74) overdraft from the bank.
  4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.
  5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together[7]

Performance

Arun Jaitley holding a press conference to announce a record number of 11.50 crore bank accounts opened under PMJDY

Due to the preparations done in the run-up, as mentioned above, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened.[2] The Prime Minister said on this occasion- "Let us celebrate today as the day of financial freedom." By September 2014, 3.02 crore accounts were opened under the scheme, amongst Public sector banks, SBI had opened 30 lakh (3 million) accounts, followed by Punjab National Bank with 20.24 lakh (2 million) accounts, Canara Bank 16.21 lakh (1.62 million) accounts, Central Bank of India 15.98 lakh (1.59 million) accounts and Bank of Baroda with 14.22 lakh (1.42 million) accounts.[8] It was reported that total of 7 Crore (70 million) bank accounts have been opened with deposits totaling more than ₹50 billion (US$740 million) as of 6 November 2014. As the government met the target, Union Finance Minister Arun Jaitley has revised the target for opening of bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the ambitious financial inclusion scheme launched by the government, from 7.5 crore to 10 crore by 26 January 2015.[9][10] On 20 January 2015, the scheme entered into Guinness book of world records setting new record for 'The most bank accounts opened in one week'.[11]

Criticism

The scheme has been criticized by opposition as an effort to please voters that has created unnecessary work-burden on the public-sector banks. it has been claimed that the poor deserves food more than bank accounts and financial security. Further, these accounts have not yet added considerable profits to PSU banks.[12][13][14][15] According to the experts, offers like zero balance, free insurance and overdraft facility would result in duplication. Many individuals who already have bank accounts may have had accounts created for themselves, lured by the insurance covers and overdraft facilities.[16] As per the scheme, a very few people are eligible to get the life insurance worth ₹30,000 (US$450) with a validity of just five years.[17] However, these 'secret' conditions were not shown in the TV advertisements of the scheme.[18] The claimed overdraft facility has been completely left upon the banks. As per the government notice, only those people would get the overdraft facility whose transaction record is satisfactory and financially.[19]

See also

References

  1. ↑ 1.0 1.1 Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ India makes financial world record as millions open new bank accounts | Guinness World Records
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ http://www.licindia.in/pages/PMJDY_Guidelines&Features.pdf
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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