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Write short notes on ‘Pradhan Mantri Jan Dhan Yojana’

Pradhan Mantri Jan Dhan Yojana (PMJDY):

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  • Launch Date: Pradhan Mantri Jan Dhan Yojana was launched on August 28, 2014, by the Prime Minister of India, Narendra Modi.
  • Objective: The primary objective of PMJDY is to ensure financial inclusion by providing access to financial services such as banking and deposit accounts, insurance, and pension schemes to all citizens, particularly those who were previously unbanked.
  • Key Components:
  1. Basic Savings Bank Deposit Account (BSBDA): PMJDY provides individuals with a BSBDA, offering banking services with minimal or zero balance requirements.
  2. RuPay Debit Card: Account holders receive a RuPay debit card to facilitate cashless transactions, making it easier for them to participate in the formal economy.
  3. Overdraft Facility: Eligible account holders are provided with an overdraft facility, offering a small line of credit to manage short-term financial needs.
  4. Insurance Cover: PMJDY provides life insurance coverage of Rs. 30,000 and an accident insurance cover of Rs. 2 lakh for account holders.
  5. Pension Schemes: The yojana encourages individuals to join pension schemes like Atal Pension Yojana (APY) to secure their future.
  • Achievements:
  • PMJDY has been recognized as one of the world’s largest financial inclusion initiatives.
  • Millions of previously unbanked individuals have opened bank accounts under the scheme.
  • The scheme has played a crucial role in bringing marginalized sections of society into the formal banking sector.
  • Digital Transformation:
  • PMJDY has contributed to the digitization of financial transactions, encouraging electronic payments and reducing dependence on cash.
  • Social Security Measures:
  • The yojana includes social security measures, such as insurance and pension schemes, promoting the financial well-being of account holders.
  • Awards and Recognition:
  • PMJDY has received international recognition and awards for its impact on financial inclusion and poverty alleviation.
  • Challenges:
  • Despite its success, challenges persist, including ensuring active usage of accounts, addressing issues related to financial literacy, and promoting a wider range of financial services.

Pradhan Mantri Jan Dhan Yojana has been instrumental in bringing millions of Indians into the formal banking system, fostering financial inclusion, and providing social security measures for the economically vulnerable sections of society.