PM JAN DHAN YOJANA (Syllabus: GS Paper 3 - Economy)

News-CRUX-10     28th August 2023        

Context: About 62.6 million holders of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts have received direct benefits as the scheme completes its ninth year.

  • This has helped the Centre plug leaks, weed out fake accounts, and target genuine beneficiaries of government schemes. 
  • Over the years, Jan-Dhan accounts have become fundamental to the JAM trinity (linking Jan-Dhan Yojana, Aadhaar, and mobile numbers), allowing benefits to be transferred directly to verified bank accounts of identified beneficiaries in a much more transparent manner.

Pradhan Mantri Jan Dhan Yojana

    • About: Announced on 15th August 2014, PMJDY is National Mission for Financial Inclusion named as the Pradhan Mantri Jan Dhan Yojana to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
  • Features of the scheme:
    • All households across the country – both rural and urban are to be covered under the scheme.
    • An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
    • Issuance of RuPay Debit Card with inbuilt Rs 2 lakh personal accident insurance cover.
    • The increased coverage amount of Rs. 2 lakh is for PMJDY accounts opened after 28.08.2018.
    • A minimum monthly remuneration of Rs 5,000 to business correspondents who will provide the last link between the account holders and the bank.