Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (IPA: Pradhān Mantrī Jana Dhan Yōjanā) (Hindi: प्रधानमंत्री जन धन योजना, English: Prime Minister's People Money Scheme) (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.This financial inclusion campaign was launched by the Prime Minister of India Mr. Narendra Modi, on 28 August 2014 He had announced this scheme on his first Independence Day speech on 15 August 2014

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme.Guinness World Records Recognises the Achievements made under PMJDY, Guinness World Records Certificate says "The most bank accounts opened in 1 week as a part of financial inclusion campaign is 18,096,130 and was achieved by Banks in India from 23 to 29 August 2014". By 05 August 2015, 17.45 crore accounts were opened, with around ₹22,032.68 crore (US$2.6 billion) were deposited under the scheme.

Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on 05.08.2015) (All Figures in Crores)

S.No		No Of Accounts			No Of Rupay Debit Cards	Balance In Accounts	% of Zero Balance Accounts
		Rural	Urban	Total
1	Public Sector Banks	7.48	6.16	13.64	12.54	17273.12	45.75
2	Regional Rural Banks	2.65	0.46	3.11	2.27	3684.56	48.55
3	Private Banks	0.41	0.28	0.7	0.62	1075.01	45.71
	Total	10.55	6.9	17.45	15.43	₹22,032.68 crore (US$2.6 billion)	46.25

Purpose

In a run up to the formal launch of this scheme, the Prime Minister personally mailed to Chairmans of all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore (75 million) households and to open their accounts. In this email he categorically declared that a bank account for each household was a "national priority".

The scheme has been started with a target to provide 'universal access to banking facilities' starting with "Basic Banking Accounts" with overdraft facility of Rs.5000 after six months and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card. In next phase, micro insurance & pension etc. will also be added.

Under the scheme:

1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh(to be given by 'HDFC Ergo').

2. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹ accident, they will be given life insurance cover of ₹ 30,000(to be given by LIC).

3. After Six months of opening of the bank account, holders can avail 5,000 ₹ overdraft from the bank.

4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together

Performance

Due to the preparations done in the run-up, as mentioned above, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened. The Prime Minister said on this occasion- "Let us celebrate today as the day of financial freedom." By September 2014, 3.02 crore accounts were opened under the scheme, amongst Public sector banks, SBI had opened 30 lakh (3 million) accounts, followed by Punjab National Bank with 20.24 lakh (2 million) accounts, Canara Bank 16.21 lakh (1.62 million) accounts, Central Bank of India 15.98 lakh (1.59 million) accounts and Bank of Baroda with 14.22 lakh (1.42 million) accounts. It was reported that total of 7 Crore (70 million) bank accounts have been opened with deposits totaling more than 5000 crore Rupees (approx 1 billion USD) as of November 6, 2014. As the government met the target, Union Finance Minister Arun Jaitley has revised the target for opening of bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the ambitious financial inclusion scheme launched by the government, from 7.5 crore to 10 crore by January 26, 2015. On 20th January 2015, the scheme entered into Guinness book of world records setting new record for 'The most bank accounts opened in one week'.

Criticism

The scheme has been criticized by many experts from the banking sector as an effort to please voters that has created unnecessary work-burden on the public-sector banks. The opposition party Congress alleged that Mr Modi was trying to take credit of the financial inclusion scheme started by UPA government and the new yojana had got nothing new.According to the experts, temptations presented by the Prime Minister like zero balance, free insurance and overdraft facility would result in duplication. Many individuals who already have bank accounts may have had accounts created for themselves, lured by the insurance covers and overdraft facilities. As per the scheme, a very few people are eligible to get the life insurance worth ₹30,000 with a validity of just five years. However, these 'secret' conditions were not shown in the TV advertisements of the scheme. The claimed overdraft facility has been completely left upon the banks. As per the government notice, only those people would get the overdraft facility whose transaction record is satisfactory as per the banks. It is quite unlikely that many people would get this facility as the banks would avoid potential NPAs. The claimed accidental insurance has also proved to be a non-existing scheme as the Rupay card holders have got no legal paper for any such accidental insurance.

See also

• Make in India

References

• "Pradhan Mantri Jan Dhan Yojana" (PDF). Department of Financial Services, Ministry of Finance.

External links

• Official Website
• Department of Financial Services, Ministry of Finance, website
• [1]
• Jan Dhan Yojana Benefits
• Jan Dhan Yojana, Documents Required
• Jan Dhan Yojana sets a Guinness record