New Delhi: The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched by Prime Minister Narendra Modi on August 28, 2014, with the concept of poverty reduction has become the world’s largest financial inclusion scheme — with more than 53.14 crore beneficiaries and total deposit balances at Rs 2,31,236 crore, the government said on Wednesday.
The Ministry of Finance proudly announced in a recent statement that PMJDY accounts have grown 3.6-fold, from 15.67 crore in March 2015 to an impressive 53.14 crore as of August 14, a testament to the scheme’s success and popularity.
Union Finance Minister Nirmala Sitharaman highlighted that universal and affordable access to formal banking services, a key aspect of PMJDY, is not just about financial inclusion but also about empowerment. She stated, “It integrates the poor into the economic mainstream and plays a crucial role in the development of marginalised communities, inspiring them to take control of their financial future.”
“PM Jan Dhan Yojana has transformed the banking and financial landscape of the country over the last decade. These bank accounts have garnered a deposit balance of Rs. 2.3 lakh crore, and resulted in the issuance of over 36 crore free-of-cost RuPay cards, which also provide for a Rs 2 lakh accident insurance cover,” Minister Sitharaman noted.
Notably, there are no account opening fees or maintenance charges and no requirement to maintain a minimum balance.
The PMJDY scheme provides one basic bank account for every unbanked adult. This account does not require a balance and is not charged.
PMJDY account holders can also get an overdraft of up to Rs 10,000 to cover exigencies.
The Finance Minister said it is heartening that 67 percent of the accounts have been opened in rural or semi-urban areas, and 55 percent of accounts have been opened by women.
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The Jan-Dhan Aadhaar and mobile (JAM) trinity, with PMJDY as one of its pillars, has proven to be a diversion-proof subsidy delivery mechanism. This success is largely due to the effective use of technology, such as biometric authentication and mobile banking, to ensure direct and transparent transfer of subsidies and benefits to the intended beneficiaries.
Union Minister of State for Finance Pankaj Chaudhary emphasised that PMJDY is a “transformation movement that has enabled financial independence of many of the unbanked population and instilled a sense of financial security.”
In his 2021 Independence Day speech, the Prime Minister announced that every household should have a bank account and every adult should have insurance and pension coverage.
“With the continuous efforts in this direction through various saturation drives carried out across the country, we have achieved near saturation in bank accounts, and there has been a continuous increase in insurance and pension coverage across the country,” said Chaudhary.
The PMJDY accounts have been instrumental in receiving Direct Benefit Transfers. For instance, subsidies for cooking gas, food grains, and other welfare schemes are directly credited to these accounts. They serve as a platform for hassle-free subsidies/payments made by the government to the intended beneficiary without any middlemen, ensuring seamless transactions and accumulation of savings.
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–IANS
