PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)

About:

• 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.