Aug. 28, 2020

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - National Mission for Financial Inclusion, completes six years of successful implementation.


  • PMJDY was announced by Prime Minister Narendra Modi in his Independence Day address on 15th August 2014. It was launched on 28th August.

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

  • The scheme was launched based upon the following 6 pillars:
    • Universal access to banking services – Branch and BC

    • Basic savings bank accounts with overdraft 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 30,000 on account opened between 15 Aug 2014 to 31 January 2015

    • Pension scheme for Unorganized sector

  • The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 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) and Increase in upper age limit for OD from 60 to 65 years.

Source : PIB