Published on: August 30, 2021

PRADHAN MANTRI JAN DHAN YOJANA (PMJDY)

PRADHAN MANTRI JAN DHAN YOJANA (PMJDY)

excursively What is in news :

According to finance ministry, Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), number of bank accounts have increased to 43 crores with total deposits of Rs 1.46 lakh crore

http://offsecnewbie.com/2018/06/18/oscp-journey-part-1/?share=twitter About PMJDY

Announced on 15th August 2014, 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.

Objectives:

  • To ensure access of financial products & services at an affordable cost.
  • Use of technology to lower cost & widen reach.

Basic tenets of the scheme:

  • Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
  • Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.
  • Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

The scheme is Based upon the following 6 pillars:

  • Universal access to banking services – Branch and Banking Correspondents.
  • Basic savings bank accounts with overdraft facility (OD) of Rs. 10,000/- to every household.
  • Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking.
  • Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults.
  • Insurance – Accident cover up to Rs. 1,00,000 and life cover of 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
  • Pension scheme for Unorganized sector