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Pradhan Mantri Jan-Dhan Yojana Launched
Aug 30, 2014

The Prime Minister launched the Pradhan Mantri Jan DhanYojana at a National level function on 28 August. Financial Inclusion is one of the top most priorities of the Government. Exclusion of a large number of people from any access to financial services inhibits the growth of our country. There is evidence that financial inclusion is crucial to poverty reduction.

The target of the scheme is to cover 7.50 crore households with at least one account under the Yojana will be achieved by 26th January, 2015.  Elaborating the benefits under PMJDY, the Prime Minister said this was not a mere bank account, but had other benefits including an RuPay debit card, Rs 1 lakh accident insurance cover, and an additional Rs. 30,000 life insurance cover for those opening bank accounts before 26 January, 2015.

The major shift in this programme is that households are being targeted instead of only villages as targeted earlier. Moreover both rural and urban areas are being covered this time as against only rural areas targeted earlier. The present plan pursues digital financial inclusion with special emphasis on monitoring by a Mission headed by the Finance Minister.

Financial literacy has been accorded high priority under the scheme. A standardized Financial Literacy material has been prepared in vernacular languages to create awareness about the scheme. A platform has been built by National Payment Corporation of India   (NPCI) that connects all the banks and all the telephone network operators in the country. The platform helps a customer or any bank to access his/ her account with any type of mobile handset. Costly smart phone is not necessary. Even with an ordinary handset, services like balance enquiry and money transfer is possible. The business correspondent of banks can also use the services to support cash deposit and cash withdrawal. 26 Public Sector Banks and 3 Private Sector Banks have joined this platform. Other would also join soon. Full range of banking services would now be possible thorough ordinary mobile phones.

The scheme will be implemented in two phases:

Phase-I (15 August 2014-14 August 2015): 

  • Universal access to banking facilities for all households across the country through a bank branch or a fixed point Business Correspondent (BC) called Bank Mitra within a reasonable distance except areas with infrastructure & connectivity constraints.
  • To cover all households with atleast one Basic Banking Account with RuPay Debit card having inbuilt accident insurance cover of Rs.1 lakh. Further an overdraft facility upto Rs.5000 will also be permitted to Adhaar enabled accounts after satisfactory operation in the account for 6 months.
  • Financial literacy programme which aims to take financial literacy upto village level.
  • The Mission also envisages expansion of Direct Benefit Transfer under various Government Schemes through bank accounts of the beneficiaries of.
  • The issuance of Kisan Credit Card (KCC) as RuPay Kisan Card is also proposed to be covered under the plan.


Phase-II (15 August 2015-15 August 2018): 

  • Providing micro-insurance to the people.
  • Unorganised sector Pension schemes like Swavalamban through the Business Correspondents.

The scheme is being monitored in a Mission Mode with the Finance Minister being the Head of the Mission. It is estimated to cover 7.50 crore households with at least one account under the scheme and also a large number of dormant accounts would be activated. Electronic Transfer of subsidies under various schemes of Government would be enabled.


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