8 years of PM Jan Dhan Yojana

Recently, the central government’s ambitious scheme Pradhan Mantri Jan Dhan Yojana has completed eight years. The main objective of this scheme was to include the poor section of the country in the main banking system.

Under this scheme more than 46 crore bank accounts have been opened in 8 years. It has deposits of Rs 1.74 lakh crore. With the help of this scheme, 67 percent of the rural population of the country has now got banking services and 56 percent of women also have Jan Dhan accounts.

Key Features of the Scheme

The schemes would provide the connectivity to the individuals through banking facilities. Several key features of the scheme include:

  • Interest on deposit
  • Accidental insurance cover of Rupee One Lakh.
  • No minimum balance required
  • Life insurance cover of Rs.30,000/-
  • Easy Transfer of money across India

Further, the beneficiaries of Government Schemes would 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.

With the help of this scheme, the financial help sent by the central government to the poor during the covid-19 pandemic was directly transferred to their bank accounts. This made it possible for the financial assistance given under other schemes including Pradhan Mantri Kisan Samman Nidhi to reach the beneficiaries directly.

Challenges to Jan Dhan Scheme

  • Usage of bank accounts is limited.
  • Banking infrastructure has not reached rural areas, thus declining usage.
  • Financial literacy is low.
  • Availability of loans and credit for rural areas is less.
  • A significant population is still without any bank accounts.

PMJDY is a significant scheme to ensure inclusive development and channelize savings in the economy. The focus should now shift to increasing bank reach in rural areas and including all unbanked population in a scheme rather than focusing on one member per family.

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