Context:
Pradhan Mantri Jan Dhan Yojana (PMJDY) completes Ten Years.
Pradhan Mantri Jan Dhan Yojana (PMJDY):
- India’s National Mission for Financial Inclusion.
- Launched in – 2014
- Objectives –
- Ensure access to financial services (Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension) at an affordable cost.
- Use technology to lower costs and widen reach.
Basic Tenets of the Scheme:
- Banking the Unbanked
- Opening of basic savings bank deposit (BSBD) accounts with minimal paperwork.
- Relaxed KYC (Know Your Customer) norms.
- e-KYC for efficient account opening.
- Account opening in camp mode.
- Zero balance requirement and zero charges.
- Securing the Unsecured –
- Issuance of Indigenous Debit cards for cash withdrawals and payments at merchant locations.
- Free accident insurance coverage of Rs. 2 lakhs.
- Funding the Unfunded – Offering other financial products like micro-insurance, overdraft for consumption, micro-pension, and micro-credit.
6 Pillars of PMJDY:
- Universal Access to Banking Services – Facilitated through branches and Banking Correspondents.
- Overdraft Facility – Basic savings bank accounts with an overdraft facility of Rs. 10,000/- for eligible adults.
- Financial Literacy Programme – Promotes savings, ATM usage, credit readiness, insurance, and mobile banking.
- Creation of Credit Guarantee Fund – Provides banks with guarantees against defaults.
- Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 for accounts opened between 15 Aug 2014 and 31 January 2015.
- Pension Scheme for the Unorganized Sector.
Source: Business Standard
Previous Year Question
‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for
[UPSC Civil Services Exam – 2015 Prelims]
(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities
Answer: (c)
