In recent days lots of talk is going on about Pradhan Mantri Jan Dhan Yojana. Pradhan Mantri Jan Dhan Yojana is in news because it has recently completed 6 years since its launch.

So, in this article I am going to discuss various features, benefits and achievement of Pradhan Mantri Jan Dhan Yojana.

What is Pradhan Mantri Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana(PMJDY) is a national mission based on financial inclusion by Government of India. Here, I have used a word ‘financial inclusion’ which needed to be understood before proceeding towards PMJDY.

What is financial inclusion?

According to World Bank “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way”.

Financial inclusion is a government’s National priority because it is driving force of inclusive growth.

The first announcement of Pradhan mantri Jan dhan Yojana was made on 15 August 2014 by Prime minister Narendra Modi.

6 Pillars of Pradhan Mantri Jan dhan Yojana

Universal access to banking services

Under this Government promises to facilitate at least 1 bank account in a family. At the time of launch government estimated that every habitation has access to banking services within 5 km with in one year.

Pension scheme for unorganised sector

Under this government promises to facilitate pension for or elderly people aged above 60 through various schemes. The government has launched ‘Pradhan mantri Vaya Vandana Yojana‘ to provide social security to elderly person aged above 60 years.

The responsibility for implementation of this scheme is given in the hands of Life insurance corporation of India(LIC). LIC will provide a fixed return of 8% per annum for 10 years.

Providing Basic Banking Accounts with overdraft facility and RuPay debit card

Government will put effort to cover all those households, which are not covered with banking facilities by August 2015. With the help of RuPay debit card provided under this scheme, facility of overdraft of Rs. 5000 will be provided.

Note : The limit of overdraft has been increased to Rs. 10000.

Micro Insurance

To provide micro – insurance to all willing and eligible persons by 14th August, 2018, and then on an ongoing basis.

Financial Literacy Program

Financial literacy is an integral part of this Mission. This scheme let the beneficiaries make best use of the financial services being made available to them.

Creation of Credit Guarantee Fund

The government will create a credit guarantee fund that will be responsible for covering the defaults by overdraft accounts.

Benefits under Pradhan Mantri Jan Dhan Yojana

• One basic savings bank account is opened for unbanked person.
• There is no requirement to maintain any minimum balance in PMJDY accounts.
• Interest is earned on the deposit in PMJDY accounts.
• Rupay Debit card is provided to PMJDY account holder.

• Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
• Life Insurance Cover of Rs. 30,000 to eligible PMJDY account holders who opened their account for the first time between 15.8.2014 to 31.1.2015 is available.
• An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
• PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pendion Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.
• A minimum monthly remuneration of Rs 5,000 to business correspondents.
• Achievements of Pradhan mantri Jan dhan Yojana
• Government is celebrating 6 years of Jan dhan Yojana achievement these days, so here I have mentioned some achievement of PMJDY.
• Government was successful in providing banking services to more than 40.35 crores unbanked people due to implementation of PMJDY.

• It’s a great achievement for Government because banking was not accessible to low income group people and farmers.
• Total money deposit under Pradhan mantri Jan dhan Yojana scheme stands at Rs. 1.31 lakhs crore which in itself a huge number.
• The average account balance of all accounts under Pradhan Mantri Jan Dhan Yojana stands at Rs. 3239.