Pradhan Mantri Jan-Dhan Yojana(PMJDY) completes six years

News: Pradhan Mantri Jan-Dhan Yojana (PMJDY) – National Mission for Financial Inclusion has completed six years of successful implementation.


  • Pradhan Mantri Jan-Dhan Yojana(PMJDY): It was launched in 2014 to ensure universal access to financial services namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner through the use of technology.
  • Features: The scheme was launched based upon the following 6 pillars: 
    • Universal access to banking services  – Branch and BC
    • Basic savings bank accounts with overdraft(OD) facility 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   Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
    • Pension scheme for Unorganized sector.
  • Extension of PMJDY with New features – The Government has decided to extend the comprehensive PMJDY program beyond 2018 with some modifications:
    • Focus shift from ‘Every Household’ to Every Unbanked Adult
    • RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
    • Enhancement in overdraft facilities – OD limit doubled from Rs 5,000/- to Rs 10,000/-;  OD upto Rs 2,000/- (without conditions).
    • Increase in upper age limit for OD from 60 to 65 years.
  • Operative PMJDY Accounts:
    • As per extant RBI guidelines, a PMJDY account is treated as inoperative if there are no customer induced transactions in the account for over a period of two years
    • In August 2020, out of total 40.35 crore PMJDY accounts, 34.81 crore (86.3%) are operative