‘National Mission for Financial Inclusion’ has now completed a decade of successful implementation. Commonly known as the Pradhan Mantri Jan Dhan Yojana (PMJDY), it was launched by the Prime Minister of India, Shri Narendra Modi, on 28th August 2014. This being the largest financial inclusion initiative in the world; the Ministry of Finance of the country continuously endeavors to support the marginalised and economically backward sections through its financial inclusion interventions.
As per PIB, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman shares that universal and affordable access to formal banking services is essential for achieving financial inclusion and empowerment. It integrates the poor into the economic mainstream and plays a crucial role in developing marginalised communities.
The Union Finance Minister holds that “by providing universal, affordable, and formal financial services to the previously unbanked ones, this “Yojana” has transformed the banking and financial landscape of the country over the last decade. These services include bank accounts, small savings schemes, insurance, credit, etc.
The success of this initiative is reflected in 53 crore people having been brought into the formal banking system through the opening of Jan Dhan Accounts. These bank accounts have garnered a deposit balance of Rs. 2.3 lakh crore. It has also resulted in the issuance of over 36 crore free-of-cost RuPay cards. It also provides for a ₹2 lakh accident insurance cover. Notably, there are no account opening or maintenance charges, and no requirement to maintain minimum balance. Sixty-seven per cent of such accounts have been opened in rural or semi-urban areas. And fifty five percent have been opened by women.
The linking of Jan Dhan-Mobile-Adhaar has been one of the most important pillars of the financial inclusion ecosystem. It has enabled swift, seamless and transparent transfer of Government welfare schemes to eligible beneficiaries, and it has promoted digital payment. In the account, a free-of-cost RuPay Debit card with in-built accident insurance cover of Rs. 2 lakh is also provided to promote digital transactions. PMJDY account holders are also eligible for getting an overdraft of up to Rs. 10,000 to cover exigencies.
Union Minister of State for Finance Shri Pankaj Chaudhary holds that this “Yojana” is a “transformation movement” that has enabled the financial independence of many of the unbanked population. The PMJDY accounts are instrumental in receiving Direct Benefit Transfers and also serve as a platform for hassle-free subsidies/payments made by the government to the intended beneficiary without any middlemen, seamless transactions, and savings accumulation. Moreover, they have been crucial in providing life and accident insurance to millions of unorganized sector workers through Jan Suraksha schemes (micro-insurance schemes).
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