Q. Pradhan Mantri Jan-Dhan Yojana’ has been launched for

  • providing housing loan to poor people at cheaper interest rates
  • promoting women’s Self-Help Groups in backward areas
  • promoting financial inclusion in the country
  • providing financial help to the marginalized communities

Answer: (c) promoting financial inclusion in the country

Pradhan Mantri Jan Dhan Yojana (PMJDY):
  • PMJDY is a National Mission for Financial Inclusion launched in August 2014 to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance and Pension, in an affordable manner.
  • It envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension.
  • The plan also envisages channeling all Government benefits (from Centre / State / Local Body) to the beneficiary’s accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union Government.
  • Eligibility:
    • The applicant should be an Indian National.
    • The applicant should be aged between 18 and 59 years.
    • If minors above ten years apply, they will require support from their legal guardians to administer their PMJDY account.
  • Jan Dhan Account:
    • An individual can consider opening an account under this scheme with any bank branch or Business Correspondent (Bank Mitr) outlet. 
    • Further, accounts opened under PMJDY can be opened with zero balance.
    • However, if the account holder wishes to get a chequebook, he/she will have to fulfill the minimum balance criteria. 
    • The account holders under this scheme will be given a RuPay debit card which can be used across all ATMs for cash withdrawal.
  • Individuals opening a Jan Dhan account are subject to be recipients of certain benefits. They are
    • Accidental Insurance Cover:
      • It provides accidental insurance of ₹1,00,000 to the holders of non-premium cards, while those with premium cards can avail up to ₹2,00,000.
      • People holding a RuPay Debit Card under PMJDY will be eligible for this insurance.
    • Life Cover Insurance:
      • The holders of a RuPay Debit Card under the scheme can also receive life cover insurance up to ₹30,000.
      • It will only apply to people opening bank accounts for the first time under Jan Dhan Yojana with a debit card.
      • The person should also be the head of the family or a major earning member.
      • This scheme will be liable to a single payment of ₹30,000 upon the death of a beneficiary.
      • State or Central Government employees, public sector employees, and people with taxable income will not be eligible for life cover insurance under Jan Dhan Yojana.
    • Overdraft Facility: Beneficiaries can avail of an overdraft facility for up to ₹10,000. However, this is only available against one account per household.
    • This scheme also provides loans of up to ₹5,000 to beneficiaries after completing six months of account transactions.
  • Significance:
    • Promoting Equitable Growth: PMJDY fosters Financial Inclusion (FI), leading to inclusive growth through the provision of affordable financial services to low-income and disadvantaged segments of the population.
      • The Jan Dhan–Aadhaar–Mobile (JAM) architecture has enabled seamless transfer of government benefits to common citizens’ accounts.
    • Bringing Savings to Formal Systems: PMJDY has brought the savings of the poor into the formal financial system, freeing them from usurious money lenders.
    • Empowering Women: Approximately 55.5% of Jan Dhan accounts belong to women, promoting financial empowerment.
      • Overdraft is available in only one account per household, preferably lady of the household.