PM Jan Dhan Yojana (PMJDY)- Achievements over Last Eight Years

As on 10th August '22 number of total PMJDY Accounts: 46.25 crore; 55.59% (25.71 crore) Jan-Dhan account holders are women and 66.79% (30.89 crore) Jan Dhan accounts are in rural and semi-urban areas.

Table of Contents

Pradhan Mantri Jan Dhan Yojana (PMJDY)- Relevance for UPSC Exam

GS Paper 2: Governance, Administration and Challenges
- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Pradhan Mantri Jan Dhan Yojana (PMJDY) in News

Recently, Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion, completed eight years of successful implementation.

Pradhan Mantri Jan Dhan Yojana (PMJDY) Performance

PMJDY Accounts

As on 10th August ’22 number of total PMJDY Accounts:25 crore; 55.59% (25.71 crore) Jan-Dhan account holders are women and 66.79% (30.89 crore) Jan Dhan accounts are in rural and semi-urban areas
- During first year of scheme 17.90 crore PMJDY accounts were opened
Continuous increase in no of accounts under PMJDY: PMJDY Accounts have grown three-fold from 14.72 crore in Mar’15 to 46.25 crore as on 10-08-2022.

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’22, out of total 46.25 crore PMJDY accounts, 37.57 crore (81.2%) are operative
Only 8.2% PMJDY accounts are zero balance accounts

Deposits under PMJDY accounts

Total deposit balances under PMJDY Accounts stand at Rs. 1,73,954 crore
Deposits have increased about 7.60 times with increase in accounts 2.58 times

Average Deposit per PMJDY Account

Average deposit per account is Rs. 3,761
Deposit per account has increased over 2.9 times over Aug’15

Rupay Card issued to PMJDY account holders

Total RuPay cards issued to PMJDY accountholders: 31.94 crore
Number of RuPay cards & their usage has increased over time

About PMJDY

Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion (Read about Financial Inclusion Index from here) to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

PM Jan Dhan Yojana (PMJDY) Objectives

To ensure access of financial products & services at an affordable cost.
To lower cost & widen reach in the country through use of technology.

Pradhan Mantri Jan Dhan Yojana benefits

Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.
Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

PM Jan Dhan Yojana (PMJDY) Pillars

The PM Jan Dhan Yojana (PMJDY) scheme was launched based upon the following 6 pillars:

Universal access to banking services through Branch and Banking Correspondents (BC).
Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every eligible adult
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 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
Pension scheme for Unorganized sector.

Extension of PM Jan Dhan Yojana (PMJDY) with new features

The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications
Focus shifted 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 lakhs for PMJDY accounts opened after 28.8.2018.
Enhancement in overdraft (OD) 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.