What is PMJDY?
Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, is a flagship financial inclusion initiative by the Government of India. Its primary objective is to ensure access to basic banking services for all, particularly the unbanked and underbanked sections of society.
Key Features of PMJDY:
- Basic Savings Bank Account: Every household is entitled to at least one basic bank account.
- Zero Balance Accounts: No minimum balance is required to maintain the account.
- RuPay Debit Card: A free RuPay debit card is issued with an inbuilt accident insurance cover of Rs. 1 lakh.
- Overdraft Facility: Eligible account holders can avail an overdraft facility of up to Rs. 5,000.
- Life and Accidental Insurance: Life and accidental insurance covers are provided to account holders.
- Pension Facility: Access to pension schemes like Atal Pension Yojana is facilitated.
Benefits of PMJDY:
- Financial Inclusion: Brings millions of people into the formal banking system, empowering them with access to financial services.
- Economic Growth: Fosters financial stability and promotes economic growth by encouraging savings and investment.
- Social Upliftment: Reduces financial exclusion and empowers marginalized communities.
- Social Security: Provides a safety net through insurance and pension schemes.
- Digital India: Promotes digital transactions and cashless economy.
Impact of PMJDY:
- Increased Bank Accounts: Millions of bank accounts have been opened under PMJDY, significantly expanding financial access.
- Reduced Financial Exclusion: Reduced the number of unbanked individuals in India.
- Empowered Women: Empowered women by providing them with access to financial resources.
- Enhanced Social Security: Improved social security coverage for vulnerable sections of society.
Conclusion:
PMJDY has been a transformative initiative in India’s financial landscape. By providing access to basic banking services, it has empowered millions of people and contributed significantly to the country’s economic and social development.