Prime Minister Shri.Narendra Modi on 15-august 2014 announced a financial inclusion scheme known as Pradhan Mantri Jan-Dhan Yojna (PMJDY).This scheme was formally launched on 28-Aug-2014,through this scheme financial inclusion is taken as mission mode.
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PMJDY is highly successful. Provision of social security by pension and insurance cover is a significant policy intervention., RuPay enable debit card provides transaction security and overdraft facility , subsidies transfer to bank account will provide economic security. Enthused by the success the target for opening basic account target has been revised form 7.5 Crore to 10 Crore by January 26 and this target is also met and banks have issued 7.28 Crore RuPay debits cards. So will combine efforts of GOI ,RBI ands Banks ,PMJDY will able to provide financial inclusion to every section of our society.
- In order to achieve financial inclusion various initiatives were taken by previous governments and RBI like expansion of bank branches network, opening of no frills account ,mandatory financial inclusion plans by banks ,adoption of business correspondent model (BC) but still vast section of our country out of reach of financial services, So to provide basic financial services like saving account, Remittance, Credit ,Insurance ,Pension in an affordable manner to common man PMJDY was launched.
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How PMJDY is different from previous Financial Inclusion schemes
- PMJDY focus on opening bank account in every family where as previous scheme focus on providing banking services with population more than 2000.
- PMJDY focus on rural and urban area as same where as previous scheme concentrate more on rural areas.
- Thrust of this scheme is on providing not just account opening but also addition services like insurance ,overdraft facility, remittances, RuPay debit card.
- USSD based mobile banking to be utilized where as in previous scheme there is not use of mobile banking .
- Financial literacy is focus in PMJDHY where as in previous scheme financial literacy was neglected.
- In PMJDY, KYC needed to open bank account was made simpler .
- Banking Mitry
PMJDY envisages provision of affordable financial services within reasonable distance. It comprises of the following six pillars
- Universal access to banking services-It aims at providing banking services to all inhabitants with in reasonable distance of 5 k.m. by 14th-Aug-2015.
- Providing Basic Banking Accounts, RuPay debit card and overdraft facility to all households
- Financial Literacy Programme –Financial literacy is integral part of PMJDY. By providing financial literacy people will be able to judge right financial product for them.
- Creation of Credit Guarantee fund –It propose the creation of credit guarantee fund to cover the defaults in overdraft accounts.
- Micro insurance –To provide micro insurance to all willing and eligible persons by August2018
- Unorganised sector Pension Schemes like Swavalamban but August-2018.
PMJDY will be implemented in two phases
Phase I
(from 15-August-2014 to 14-August 2015)- In this phase first three pillars of PMJDY will be implemented ,this include- Universal access to banking facilities
- Providing basic bank account with RuPay debit card with inbuilt accidental insurance cover of 1lakh.
- Financial literacy programmes
Phase II
(from 15th-Aug-2015 to 14th-Aug-2018)-In this last three pillars of PMJDY will be implemented this include:- Creation of credit guarantee fund
- Micro Insurance
- Overdraft facility
- Unorganized sector Pension Schemes like swavalamban.
PMJDY is highly successful. Provision of social security by pension and insurance cover is a significant policy intervention., RuPay enable debit card provides transaction security and overdraft facility , subsidies transfer to bank account will provide economic security. Enthused by the success the target for opening basic account target has been revised form 7.5 Crore to 10 Crore by January 26 and this target is also met and banks have issued 7.28 Crore RuPay debits cards. So will combine efforts of GOI ,RBI ands Banks ,PMJDY will able to provide financial inclusion to every section of our society.
