Pradhan Mantri Jan Dhan Yojana UPSC: Benefits of PMJDY Scheme

By K Balaji|Updated : November 11th, 2022

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission launched with the aim to offer access to various financial services, including insurance, remittance, deposit accounts, pension, etc. in an affordable manner. Pradhan Mantri Jan Dhan Yojana was launched on 28th August 2014 by Prime Minister Narendra Modi. Financial inclusion is the equality and availability of opportunities to access financial services, and PM Jan Dhan Yojana focuses on it.

Financial inclusion plays a crucial role in the targeted delivery of government services. Pradhan Mantri Jan Dhan Yojana is a part of the UPSC syllabus. Questions can be asked from this topic, and that’s why candidates must pay attention to covering the PM Jan Dhan Yojana UPSC Notes.

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What is Pradhan Mantri Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana makes sure complete financial inclusion of all households in India by ensuring that every household gets access to a bank account, credit access, insurance, universal banking services, and financial literacy.

Pradhan Mantri Jan Dhan Yojana UPSC Notes

In August 2020, PM Jan Dhan Yojana successfully completed its six years of implementation. Financial Inclusion is also the delivery of financial services at an affordable price to low-income groups and providing them with enough access to financial services and products.

Features Under PM Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana focused on providing unbanked people with easy and simple access to financial services and information about banking services through financial literacy programs.

  • PMJDY also offers access to an overdraft facility after six months of good credit history and account operation.
  • Eligible bank account holders can access personal accident insurance coverage through their bank accounts through various government schemes.
  • There is no minimum balance requirement in Pradhan Mantri Jan Dhan Yojana accounts.
  • The government would provide interest on the deposit in PM Jan Dhan Yojana accounts.

Benefits of Pradhan Mantri Jan Dhan Yojana

The main motive of PMJDY was to the opening of bank accounts for around 7.5 crores of uncovered households by 26th Jan 2015.

  • PMJDY was successful as it opened around 12.54 crore accounts by 31st January 2015. Due to this, PM Jan Dhan Yojana is also certified by the Guinness World Records for its excellent achievements, which states that most bank accounts opened in one week as a part of the Financial Inclusion Campaign.
  • The number of bank accounts opened in a week by the Department of Financial Services, Government of India, was 18,096,130.
  • Pradhan Mantri Jan Dhan Yojana covers both rural and urban areas. It also ensures to provide Core Banking System (CBS) along with mobile banking using USSD facilities.
  • Another attraction of Pradhan Mantri Jan Dhan Yojana is it provides basic baking accounts with inbuilt accident insurance and debit card to every beneficiary.
  • For Those accounts that are opened between 15th August and 26th January 2015, a 30,000 life insurance cover will be provided to the eligible beneficiaries.

Pradhan Mantri Jan Dhan Yojana Implementation

There were three phases in the implementation of the Pradhan Mantri Jan Dhan Yojana.

Phase I: 15 August 2014- 15 August 2015

PM Jan Dhan Yojana was launched on 28th August 2014 with the aim of bringing universal access to banking services to all households in India. It also organized many financial literacy programs to educate citizens on various financial topics.

Phase II – 15 August 2015 – 14 August 2018

In this phase, the aim was to provide microinsurance to eligible beneficiaries with the help of pension schemes.

Phase III – after 14 August 2018

During Phase III, the prime focus of Pradhan Mantri Jan Dhan Yojana was to open accounts for every household in the country with an existing overdraft limit of Rs 5,000 to be raised to Rs 10,000. Only people between the age of 18 to 65 years were eligible for this facility. The insurance cover of new RuPay cards was raised to 2 lakhs for the accounts opened after 28 August 2018.

Achievements of Pradhan Mantri Jan Dhan Yojana

PMJDY was a successful mission, and since August 28, 2014, it opened 46 crore bank accounts in the country, and the deposit amount is Rs. 1.74 Lakh crore.

  • PM Jan Dhan Yojana expanded its reach to 67% of semi-urban and rural areas. In addition, 56% of women have Jan Dhan accounts which is a great achievement.
  • The total amount of deposits under the Pradhan Mantri Jan Dhan Yojana is Rs. 1.31 lakh crore. Between 2015 to 2020, the deposits have increased 5.7 times, with 2.3 ties accounts increase.
  • To make things easier and more feasible, Jan Dhan Darshak App was launched. It helped the users to locate bank branches, post offices, ATMs, etc.

Pradhan Mantri Jan Dhan Yojana UPSC

Pradhan Mantri Jan Dhan Yojana finds its mention in the government policies & interventions for the UPSC Syllabus. It means the candidates preparing for UPSC Exam must go through the topic in detail so that they can answer all types of questions asked on this particular topic. Here we have covered Pradhan Mantri Jan Dhan Yojana UPSC notes that would help them prepare for this topic for both UPSC Prelims and Mains.

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FAQs on Pradhan Mantri Jan Dhan Yojana UPSC

  • The Jan Dhan Yojana is a national mission that aims for Financial Inclusion to make sure access to financial services such as deposit accounts, insurance, credit, and pension in an affordable manner.

  • The objective of PMJDY is to ensure that every household in India gets access to financial services like Remittance, Banking Savings & Deposit Accounts, Credit, Insurance, and Pension in an affordable manner.

  • PM Jan Dhan Yojana was launched on 28th August 2014 by Narendra Modi. In August 2020, this mission completed its six successful years of implementation.

  • The six pillars of Pradhan Mantri Jan Dhan Yojana include providing pension, bank accounts insurance, financial literacy, credit and enhancing the penetration of banking agents.

  • One of the major challenges faced by Pradhan Mantri Jan Dhan Yojana is the lack of digital and physical connectivity. In addition, managing costs to maintain the infrastructure in rural areas has become a major concern as well.

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