Pradhan Mantri Jan Dhan Yojana

KEY Features of Pradhan mantri Jan Dhan Yojana:-

The scheme provides a range of following features formulated to meet the varied requirements of the underserved population:

1.Debit card: RuPay Debit card is provided to account holders which he can use for ATM withdrawals and other banking transactions.

2.Zero balance account: Individual can open a saving bank account without maintaining minimum balance.

3.Insurance coverage for accidents: With RuPay debit card, inbuilt accidental insurance cover of 2 lakhs is also given for account opened after Aug-2018.

4.Overdraft facility: Account holders can get and overdraft facility of up to 10,000 after 6 months of satisfactory banking operations.Overdraft facility is given only to one

5.Life Insurance coverage: This scheme also provides life insurance coverage of Rs. 30,000 to account holders who have opened the accounts between 15/08/2014 – 31/01/2015, and is governed by some terms and conditions.

6.Mobile banking: An account holder may operate basic banking functions through mobile phones and this avoid going to bank for every small activity.

7.Direct Benefit Transfer: For ensuring transparency and reducing leakage of funds, Government benefits and subsidies are directly transferred to the account holders.

1. 8. Easy access to microcredit: The scheme provides an easy access to loan products and affordable microcredits.

OBJECTIVES OF Pradhan Mantri Jan Dhan Yojana:-

The following are the objectives of PMJDY:

1. a) Economical financial service: The scheme provides service to open saving accounts, insurance, credit, and pension products free of cost or at a very minimal rate.
2. b) Financial empowerment: To provide universal access to all banking advantages for every underserved family in rural areas.

c)Decline in unofficial borrowing: To discourage informal sources of credit, like moneylenders.

d)Digital Financial awareness: To increase financial awareness among the population not having a bank account and encouraging all the transaction through digital payment mode.

1. e) Women empowerment: By asking women to open bank accounts and manage their savings the scheme consequently aids in women empowerment.

DOCUMENTS REQUIRED FOR GETTING BENEFIT OF PM JAN DHAN YOJNA

Following are the documents required to open a bank account under PM Jan Dhan Yojna: –

1. Aadhar card. If an Aadhar number is available, then no other documents are needed. A self-declaration is sufficient of the current address if the address is changed.

2. If an Aadhar card is not available then one among the following official documents may be produced: Driving license, PAN card, Voter ID Card, Passport, or MANREGA card.

3.In case a person does not possess any documents mentioned above and it is categorized as low risk by the banks, then the person may open an account by submitting any one of the following documents:

-Identity card with applicant’s photograph issued by State/Central Government Departments, Scheduled commercial Banks, statutory/regulatory authorities and public Financial Institutions.

-Letter issued by Gazetted Officer, with duly attested Photograph.

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PM JAN DHAN YOJNA : Most Important Terms and Conditions(MITC):-

1. Individuals should have a BSBD account, which is operated for at least six months satisfactorily.

2. Regular credits under the DBT/DBTL scheme/other approved sources should be in place.

3. The age of the applicant must be between 18 years to 65 years.

4. OD(overdraft) is provided to earning members ofthe  family and only one member of the family get this facility.

5.KCC(Kisan Credit Card)/GCC(General Credit card) borrowers are not eligible for PMJDY Overdraft.

6.Minimum OD amount is Rs 2000/- without any verification based on fulfilling above criteria. For amount above 2000/- eligible amount for OD is 4 times of balance of previous six months or 50% of credit sum in previous months or Rs 10000, whichever is minimum.

Toll free no. for Pradhan Mantri Jan Dhan Yojana (PMJDY) customer care and other Financial Inclusion scheme: 18001027788

BENEFITS OF PMJDY:-

1. Saving account holding: There is no need to maintain a minimum account balance in the PMJDY account. Interest is provided and a RuPay Debit card is provided to the PMJDY account holder.
2. Social interaction: The scheme has reduced the gap between the urban and rural populations and has developed a sense of equality and involvement in the mainstream.
3. Financial Empowerment: The scheme has strengthened the population socially and economically. PMJDY has developed a habit among the population to save, invest, and manage their money by providing access to the Banking system as a whole.
4. Developing saving habits: By facilitating saving bank account opening and providing access to formal banking facilities, the PMJDY inculcates the habit of saving and avoiding useless expenditures.
5. Attack on corruption: Direct Benefit transfer has finally reduced the leakage and minimized corruption in the delivery of Government welfare schemes and subsidies.
6. Women Empowerment: Women have also benefitted by PMJDY by opening Saving bank accounts, which ultimately provide them financial freedom promoting gender equality.
7. Growth of Digital India scheme: By promoting digital transactions and reducing cash dependency, the scheme promoted the Digital India Mission.
8. Credit facilities: Small farmers and entrepreneurs may access timely funds for their livelihoods by using the overdraft and microcredit facilities.
9. Additional facilities: PMJDY accounts are eligible for Atal Pension Yojna(APY), Pradhan Mantri Suraksha Yojna(PMSY),Direct Benefit Transfer(DBT),Micro Units Development & Refinance Agency Bank(MUDRA)scheme,Pradhan Mantri Jeevan Jyoti Bima yojna(PMJJBY)

CHALLENGES AND WAY FORWARDS:-

CHALLENGES:-

1. Nonactive accounts: After opening savings accounts, account holders don’t use the account effectively because of a lack of knowledge of financial management. The number of such inactive accounts is huge and leads to a big hurdle for the scheme.
2. Restricted overdraft usage: Many account holders don’t know that bank provides overdraft facilities and are unaware of the benefits of overdrafts. People are also unwilling to use overdraft facilities.
3. Infrastructural problems: Because of poor connectivity and insufficient banking infrastructure, people are unable to get the benefit of this scheme.
4. Overload on banks: The huge number of saving accounts makes it difficult for available banks and banking correspondents to process the service requests. Consequently, it leads to delay in banking services.

WAY FORWARDS:-

1. Financial literacy awareness: Awareness needs to be created among beneficiaries about the benefits as well as features of PMJDY.

2. Technology awareness and adoption: Incorporating new technologies like Aadhar-based authentication can facilitate easy account operation and may reduce fraud.

3. Infrastructure improvement: Strengthening the banking infrastructures, like mobile banking vans and ATMs may facilitate accessibility in rural areas

4. Monetary benefits to Banking officers: To motivate and to improve the efficiency of Banking officers, adequate incentives and training needs to be provided.

5. Periodic account review and updation: Regular account follow-ups and monitoring may ensure bank accounts are not dormant and look into user grievances.

CONCLUSION:-

In Conclusion, Pradhan Mantri Jan Dhan yojna is stepping stone in the path of financial inclusion in India.This scheme aims to strengthen the country’s economic ecosystem by improving the financial condition of millions of people.through this scheme mainly unbanked and underserved population has finally got benefitted. Though there are various challenges as described above , but because of its continued effort the scheme has reached a remarkable position.PMJDY is a scheme which will ultimately bridge the gap between high income group and low income group by inculcating the saving and investment habits among the people.Pradhan Mantri jan Dhan Yojna(PNJDY) is a Government mission to facilitate access to financial services like basic savings & deposit accounts insurance, credit,remittance and pensin in affordable rate.A person who is not having account in any bank may open a Basic savings bank deposit (BSBD) account in any  bank branch or business correspondent(Bank Mitra) outlets.

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