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Jan Dhan Yojana

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Bharathi Pradeep
Bharathi Pradeep
Editor at Bharathi covers topics on Competitive exams, How To guides, Current exams, Current Affairs, Study Materials, etc. Follow her on social media using the links below.

Honourable Prime Minister Mr Narendra Modi’s ambitious initiative to build India through revenue collection is known as the Jan Dhan Yojana. On the 28th of August 28, 2014, Narendra Modi launched Pradhan Mantri Jan-Dhan Yojana (PMJDY).

It is a major effort of the NDA administration to create at least one bank account for every family. It is a national mission to provide cheap access to a variety of financial services such as remittance, credit, insurance, pensions, and banking savings and deposit accounts.

Furthermore, it was expected by the cabinet ministry that this excellent plan would benefit the country. It ensures that everyone has access to financial services.

Efforts to make financial goods and services available and cheap to all individuals, especially disadvantaged and low-income communities, regardless of their net worth are referred to as financial inclusion.

Financial inclusion aims to break down the obstacles that prevent individuals from engaging in the financial industry and benefiting from its services. It’s also known as “inclusive finance.

This plan was officially introduced by Prime Minister Narendra Modi during his Independence Day speech on August 15, 2014. It also assures that every family in India has access to financial literacy and at least one basic banking account.

Benefits of Jan Dhan Yojana

  1. This plan does not demand a minimum amount to start an account. The recipient can open an account with no balance at any bank branch or Business Correspondent outlet. 
  2. The initiative encompasses both urban and rural communities and gives each account user with an indigenous Debit Card (Ru Pay card).
  3. It guarantees that customers have access to the Core Banking System (CBS) as well as mobile banking through USSD. A call centre and a toll-free number are accessible across the country
  4. One of the key benefits offered by this plan is an Rs.5,000 overdraft ability for Aadhaar-linked accounts, as well as a RuPay debit card with an integrated Rs.1 lakh accidental insurance cover.
  5. Life Insurance cover of Rupees 30,000 is granted to eligible beneficiaries for accounts created between August 15, 2014, and January 26, 2015. 

Implementation of Jan Dhan Yojana

Phase 1

It lasted from the 15th of August 2014 to the 14th of August 2015. During this time, the PMJDY plan was introduced with the goal of providing universal banking access to all home families across the country, with at least one basic banking account and a RuPay Debit Card with Rs. 1 lakh accident insurance built inferred offered the communities a financial literacy program. During this time, it was also suggested that the Kisan Credit Card be issued.

Phase 2

It lasted from the 15th of  August 2015 to the 14th of August  2018. Through Business Correspondents, it sought to provide individual sure insurance and programs like Swavalamban Scheme disorganized sector.

Phase 3

This was after August 14, 2018. PMJDY focuses on creating accounts for every household with a current Overdraft (OD) limit of Rs. 5,000 to be enhanced to Rs. 10,000 after August 14, 2018. There were no restrictions on OD up to Rs. 2,000. The age limit for using the OD facility has been changed from 18-60 to 18-65. The amount of accidental insurance available to new RuPay cardholders has been increased from Rs.1 lakh to Rs.2 lakh if the accounts were started after 28.8.18 under this enhanced coverage.

Achievements under Pradhan Mantri Jan-Dhan Yojana

  • In comparison to other UPA-era programs, PMJDY is a more effective plan. According to experts, the previous system did not prioritize families or urban financial inclusion. They claimed that account opening was restricted due to a lengthy Know Your Customer (KYC) procedure. The government will be able to repay people’s money through the Jan-Dhan Yojana plan. The scheme’s major goal is to achieve ‘Mera Khata Bhagyavidhata,’ meaning my account is divine.’
  • There are 40.35 crore PMJDY accounts (as of August 19, 2020); rural PMJDY accounts for 63.6%, while women PMJDY accounts for 55.2%. Out of a total of 40.35 crores, there are 34.81 crores (86.3%) of active PMJDY accounts. The total amount of money in PMJDY Accounts is Rs. 1.31 lakh crore.
  • In the first year of the initiative, 17.90 crore PMJDY accounts were created.
  • Deposits grew by 5.7 times between 2015 and 2020, while accounts increased by 2.3 times. The Jan Dhan Darshak App is a citizen-centric tool for identifying banking touchpoints including bank branches, ATMs, Bank Mitras, Post Offices, and other financial institutions.

Documents Essential for Creating an Account

  • Address evidence, either current or permanent, is required for account opening. If a person’s address changes, a new address proof must be sent to the bank. 
  • You may learn more about the RBI’s latest changes to the know your customer (KYC) rules. 
  • Even if you don’t have any legitimate documents, you can still create an account by submitting self-attested pictures and signing/thumb printing in front of a bank employee. A small Account is a name given to such an account. More information may be found here.
  • This little account, however, would be active for only one year after the person provided formal valid documentation such as a Passport, driver’s license, PAN card, voter identification card, Aadhaar Card, or ration card, as well as two passport-size pictures.

Finally, the Pradhan Mantri Jan Dhan Yojana was created to help individuals in India, particularly the impoverished, by providing them with a bank account, credit facility, insurance coverage, and debit card.

In the long run, the program will allow the poorer portions of the population to access subsidies and overdraft facilities via their bank accounts, therefore eliminating moneylenders, commission agents, and corruption. This initiative, according to Prime Minister Modi, would increase everyone’s trust. The Jan Dhan Yojna would boost the economy by creating records and bank accounts. The Jan Dhan Yojna will put an end to monetary opacity.

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Bharathi Pradeep
Bharathi Pradeep
Editor at Bharathi covers topics on Competitive exams, How To guides, Current exams, Current Affairs, Study Materials, etc. Follow her on social media using the links below.
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