Pradhan Mantri Jan-Dhan Yojana (PMJDY), Launched in 2014, has become a game-changer in extending financial services across India. Finance Minister Nirmala Sitharaman, at the Kautilya Economic Conclave 2023, highlighted the significant impact of this government initiative. Over 50 government schemes now directly deposit benefits into the bank accounts of beneficiaries, with PMJDY playing a pivotal role in this process.
Significant Deposits and Widespread Reach
Through PMJDY, an impressive sum of approximately Rs 206,781.34 crore has been deposited into the accounts of 50.70 crore beneficiaries. Government data reveals that 56 percent of these Jan Dhan accounts are held by women, illustrating the program’s inclusive approach. Additionally, 67 percent of these accounts are in rural and semi-urban areas, expanding financial services to underserved regions. The issuance of around 34 crore RuPay cards through these accounts has greatly improved access to banking services.
Overcoming Initial Doubts
Finance Minister Sitharaman acknowledged initial concerns about the pressure that the ‘zero balance’ accounts might put on public sector banks when PMJDY was introduced. However, today, these accounts collectively hold over Rs 2 lakh crore, dispelling initial skepticism.
Benefits of PMJDY
- Zero balance account: You do not need to maintain a minimum balance in your PMJDY account.
- RuPay debit card: You will be issued a RuPay debit card with your PMJDY account. This card can be used to withdraw cash from ATMs, make payments at point-of-sale terminals, and transfer money online.
- Overdraft facility: You can avail an overdraft facility of up to Rs.10,000 on your PMJDY account. This means that you can withdraw money from your account even if you do not have a sufficient balance.
- Accidental death insurance: You are automatically covered by an accidental death insurance policy of Rs.1 lakh when you open a PMJDY account.
- Personal accident insurance: You can avail a personal accident insurance policy of Rs.2 lakh by paying a nominal premium.
Challenges in the Economic Landscape
During her address, Minister Sitharaman addressed significant challenges in the economic landscape. She discussed the complexities of climate financing and the hurdles it presents. Additionally, she highlighted the changing dynamics of multilateral institutions, including Multilateral Development Banks (MDBs), emphasizing their reduced effectiveness in the current global scenario.
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