9 years of Pradhan Mantri Jan Dhan Yojana important for upsc ,pcs exams 2024

Pradhan Mantri Jan Dhan Yojana for UPSC&STATE PCS

Nine years of the Pradhan Mantri Jan Dhan Yojana (PMJDY) have been implemented successfully.

Developed by the Ministry of Finance, it was introduced on August 28, 2014, and is currently one of the biggest financial inclusion programmes in the world. Its goal is to give vulnerable and economically disadvantaged groups access to cheap financial services.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for (2015)

(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities

Ans: (c)

Mains

Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (2016)

What is Pradhan Mantri Jan Dhan Yojana?

About: Pradhan Mantri Jan Dhan Yojana

With a minimum of one basic bank account per family, financial literacy, and access to credit, insurance, and pension services, PMJDY establishes a basis for universal banking facilities.

Features of PMJDY:

Through branches and Banking Correspondents (BCs), it seeks to increase the scope of banking services.
- Both urban and rural areas are covered, and anyone who open an account will receive an indigenous debit card (RuPay card).
- PMJDY accounts do not need to have a minimum balance maintained.
With a RuPay card that is supplied to PMJDY account holders, accident insurance coverage of up to Rs. 1 lakh (upgraded to Rs. 2 lakh for new accounts opened after 28.8.2018) is available.
For every qualifying adult, it offers an overdraft option of Rs. 10,000.
Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) are all available to PMJDY accounts.

Significance: Pradhan Mantri Jan Dhan Yojana

Encouraging Equitable Growth: By offering low-income and underprivileged populations access to inexpensive financial services, PMJDY promotes Financial Inclusion (FI), which in turn leads to inclusive growth.

The Jan Dhan-Aadhaar-Mobile (JAM) architecture has made it possible for government benefits to be transferred smoothly into the accounts of regular people.

Introducing Savings into Formal Systems: By releasing the impoverished from predatory moneylenders, PMJDY has allowed their savings to enter the formal financial system.

Empowering Women: Women make up about 55.5% of Jan Dhan account holders, which encourages financial empowerment.
A household may only have one overdraft account, ideally held by the lady of the house.

Achievements: Pradhan Mantri Jan Dhan Yojana

Through Jan Dhan accounts, almost 50 crore people have been brought into the formal banking system.
- These accounts were opened in semi-urban and rural locations in about 67% of cases.
- Approximately 34 crore RuPay cards with ₹2 lakh in accident insurance have been provided to these accounts.
Approximately 34 crore RuPay cards with ₹2 lakh in accident insurance have been provided to these accounts.
With a certification stating that the “Department of Financial Services, Government of India, achieved the most bank accounts opened in one week as part of the Financial Inclusion Campaign, which is 18,096,130,” Guinness World Records has recognised the achievement of the PMJDY.

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