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PMJDY: Financial Inclusion



  Sep 05, 2023

Pradhan Mantri Jan-Dhan Yojana (PMJDY):Financial Inclusion and Empowerment


Q1: What is the Pradhan Mantri Jan-Dhan Yojana (PMJDY)?

A1: PMJDY was launched on August 28, 2014, with the goal of providing universal banking services. It aims to open zero-balance bank accounts for every unbanked household, aligning with the principles of banking the unbanked, securing the unsecured, and funding the unfunded.
 

Q2: How has PMJDY impacted direct benefit transfers?

A2: The PMJDY scheme, entering its ninth year, has been instrumental in allowing the government to transfer benefits directly to verified bank accounts, thereby eliminating fake accounts. As a result, in FY23, the government transferred ~7.16 trillion, 100x more than its initial years in FY14.
 

Q3: What is the JAM trinity, and how does it relate to PMJDY?

A3: The JAM trinity links the Jan-Dhan Yojana with Aadhaar and mobile numbers. This linkage ensures direct benefit transfers to verified bank accounts, enhancing transparency and plugging leaks. It has resulted in cumulative savings of more than ~2.73 trillion between 2015 and 2022.
 

Q4: How has PMJDY evolved over the years?

A4: From its inception, PMJDY accounts have grown exponentially. By August 16, there were 500 million PMJDY accounts. The total deposits in these accounts rose to ~2.03 trillion, and the number of zero-balance accounts dramatically reduced to just 8% of total accounts.
 

Q5: What benefits were provided during the pandemic via PMJDY?

A5: To mitigate the impact of the pandemic, the government utilized PMJDY to provide immediate DBT to rural households. Within 10 days of the nationwide lockdown, over 200 million women's PMJDY accounts received ex-gratia payments.
 

Q6: How have financial tools associated with PMJDY evolved?

A6: The number of RuPay debit cards for PMJDY accounts surged to 339.8 million from an initial 131.5 million. The average deposit per account also grew to ~4,063 by the end of March 2023.
 

Q7: What future enhancements are expected for PMJDY account holders?

A7: There are plans to boost PMJDY account holders' access to micro-credit and micro-investment options, like flexible recurring deposits (RDs). This would allow them to get better returns as their savings increase.
 

Q8: What are the additional benefits of a PMJDY account?

A8: PMJDY offers multiple benefits like no minimum balance requirement, free RuPay debit cards with built-in accident insurance of ~2 lakh, and an overdraft facility up to ~10,000. The finance ministry is also aiming to provide them broader coverage under micro-insurance schemes like PMSBY and PMJJBY.
 
This FAQ provides a comprehensive overview of the Pradhan Mantri Jan-Dhan Yojana, detailing its benefits, evolution, and impact on direct benefit transfers in India.


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