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