(The Gist of PIB) Pradhan Mantri Jan-Dhan Yojana

(THE GIST OF PIB) Pradhan Mantri Jan-Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - National Mission for Financial Inclusion, completes six years of successful implementation.

About:

PMJDY was announced by Prime Minister Narendra Modi in his Independence Day address on 15th August 2014. It was launched on 28th August.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings and Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

The scheme was launched based upon the following 6 pillars:

Universal access to banking services – Branch and BC.
Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every household.
Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking.
Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults.
Insurance – Accident cover up to Rs. 1,00,000 and life cover of 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
Pension scheme for Unorganized sector
The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications:
Focus shift from ‘Every Household’ to Every Unbanked Adult’
RuPay Card Insurance - Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
Enhancement in overdraft facilities: OD limit doubled from Rs 5,000/- to Rs 10,000/-; OD upto Rs 2,000/- (without conditions) and Increase in upper age limit for OD from 60 to 65 years.