Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion program launched by the Government of India in August 2014.
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Here are some key points about PMJDY:
- **Objective**: PMJDY aims to provide financial services to the unbanked and underbanked populations in India. The primary goal is to ensure that every household has access to basic financial services like a savings account, credit facilities, insurance, and pension.
- **Financial Inclusion**: One of the central objectives of PMJDY is to bring the economically disadvantaged sections of society into the formal banking system. This helps in reducing financial inequality and promoting inclusive growth.
- **Savings Accounts**: Under PMJDY, individuals can open a zero-balance savings account, making banking accessible to those who might not have the means to maintain minimum balances in traditional bank accounts.
- **RuPay Debit Card**: Account holders are provided with a RuPay debit card, which facilitates cashless transactions, including online payments and purchases. This card empowers individuals to participate in the digital economy.
- **Financial Literacy**: The scheme also includes financial literacy and awareness programs to educate people about the benefits of saving, insurance, and other financial products. This helps in improving financial knowledge among the beneficiaries.
- **Overdraft Facility**: After satisfactory operation of the account for some time, account holders become eligible for an overdraft facility. This can be crucial in times of financial need.
- **Insurance Coverage**: PMJDY offers life insurance coverage to account holders. Initially, it provided a cover of Rs. 30,000, but this amount has been increased in subsequent phases.
- **Direct Benefit Transfer (DBT)**: PMJDY has played a pivotal role in the government’s Direct Benefit Transfer (DBT) program. Government subsidies, pensions, and other financial benefits are directly transferred to the beneficiaries’ PMJDY accounts, reducing leakages and ensuring efficient delivery of social welfare benefits.
- **Massive Reach**: PMJDY is one of the world’s largest financial inclusion programs. It has succeeded in bringing millions of people into the formal banking system within a short period.
- **Recognition**: PMJDY has received international recognition for its efforts to promote financial inclusion and reduce poverty through improved access to financial services.
In summary, Pradhan Mantri Jan Dhan Yojana is a comprehensive financial inclusion program in India that has made significant strides in extending banking services to the underprivileged and underserved segments of the population, thereby contributing to economic development and poverty alleviation.