Enabling India Financially: Pradhan Mantri Jan Dhan Yojna

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Pradhan Mantri Jan Dhan


The main objective of “PRADHAN MANTRI JAN DHAN YOJNA PMJDY)” is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups. It shall be insightful for us to understand that the “Honorable Prime Minister,Narendra Modi on 15 August, 2014 announced “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” which is a National Mission for Financial Inclusion.” Pradhan Mantri Jan Dhan Yojana (PMJDY) happens to be one of the biggest financial inclusion initiatives in the world. While launching the programme on 28th August, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle. Shri Narendra Modi had referred to the ancient Sanskrit verse: Sukhasya Moolam Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam – which puts the onus on the state to involve people in economic activity. “This Government has accepted this responsibility,” the Prime Minister said & the Government has fulfilled its promise in
record time.

It would be insightful to underline some of its details here-

Pradhan Mantri Jan-Dhan Yojana (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. Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria.

Some of the Special Benefits under PMJDY Scheme are:-

  • Interest on deposit.
  • Accidental insurance cover of Rs.1.00 lakh.
  • No minimum balance required.
  • Life insurance cover of Rs.30,000.
  • Easy Transfer of money across India.
  • Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
  • After satisfactory operation of the account for 6 months, an overdraft facility will be permitted.
  • Access to Pension, insurance products.
  • Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
  • Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.

Pradhan Mantri Jan Dhan Yojana provides a platform for universal access to banking facilities with at least one basic banking account for every household, financial literacy, and access to credit, insurance and pension facility. It covers both urban and rural areas and those who open account would get indigenous Debit Card (RuPay card). Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet at zero balance. Every bank account is on Core Banking System (CBS) of banks. Mobile banking using USSD facility available on even basic feature phones is also being supported. A facility of call centre and toll free number is available nationwide.

PMJDY brings about the objective of financial inclusion for all by providing basic banking accounts with a debit card with inbuilt accident insurance. The main features of PMJDY include Rs. 5,000 overdraft facility for Aadhar-linked accounts and a RuPay debit card with inbuilt Rs. 1 lakh accident insurance cover. In addition, for accounts opened between 15th August 2014 and 26th January 2015, a Life Insurance cover of Rupees 30,000 is available to the eligible beneficiaries. One of the salient features of Pradhan Mantri Jan Dhan Yojana is that after remaining active for 6 months, the account holder will become eligible for an overdraft of up to Rs 5,000.


Under the scheme, financial literacy programme which aims to take financial literacy upto village level is provided for better understanding of the whole mechanism. The Mission also imagines extension of Direct Benefit Transfer (DBT) under various Government Schemes through bank accounts of the recipients. The Kisan Credit Cards (KCC) are also being linked with RuPay platform. Micro insurance to the people, and unorganised sector Pension schemes like Swavalamban through the Business Correspondents have also been included for the second phase of the programme. Geetanjali Care, a non-profit organization, respects and salutes this initiative by the Prime Minister and vouches to support such constructive steps in all the possible ways, by all the possible means, so that everybody in India feels financially enabled and hence, secure.