Posted on : 27-01-2015 | Back | Print

Financial Inclusion is one of the top most priorities of the government. Exclusion of a large number of people from any access to financial services inhibits the growth of our country.

Pradhan Mantri Jan Dhan Yojana (PMJDY) the biggest financial inclusion initiative in the world was announced by the Hon’ble Prime Minister on 15th August 2014 from the ramparts of the Red Fort and launched by him on 28th August 2014 across the country.

While launching the Yojana, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle. Prime Minister had referred to the ancient Sanskrit verse: Sukhasya Moolam Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam – which puts the onus on the state to involve people in economic activity. “This Government has accepted this responsibility,” the Prime Minister had said. The Prime Minister had also sent email to an estimated 725,000 bank employees, exhorting them to help reach the target of 75 million bank accounts, and bring freedom from financial untouchability.

Finance Minister Shri Arun Jaitely   in a press conference on 20 January 2015 listed out the achievements made under PMJDY. Against the estimated target of opening bank accounts for 75 mln uncovered households in the country, as on January 16,  2015, Banks have opened 114.3 mln  accounts after conducting  survey  of 210.2 mln households in the country. Coverage of 99.74% of the surveyed households has been achieved. The survey was conducted in about 227,000 Sub Service Areas (SSAs) in rural areas and wards in urban areas in a record time of 4 months.  Out of the accounts opened, 60% are in rural areas and 40% are in urban areas. Share of female account holders is about 51%.

Rupay debit cards have been issued to 97.4 mln beneficiaries who will get a benefit of personal accidental insurance of Rs. 100,000 under the Yojana (Scheme). In addition there is a life insurance cover of Rs.30,000 for eligible beneficiaries.  A deposit of Rs. 90320 mln has been mobilized in the accounts opened under PMJDY.  

The major shift in PMJDY from earlier schemes is that households were targeted instead of only villages as targeted earlier. Moreover both rural and urban areas are covered this time as against only rural areas targeted earlier.  

The present plan pursued digital financial inclusion with special emphasis on monitoring by a Mission headed by the Finance Minister. A mission office comprising of bankers, IT professionals and data analytic was set up for coordination, collation and follow up with various state governments, Banks and other stakeholders.

PMJDY is a game changer for the economy as it has provided the platform for Direct Benefits transfer which will help in plugging leakages in subsidies and thereby provide savings to the exchequer. Under the PAHAL scheme which is the Direct benefits Transfer in LPG subsidy, an amount of Rs. 17570 mln has been transferred to the beneficiary accounts through the banking network since 15th November,2014.  

So far 19 schemes out of 35 DBT schemes have been rolled out across the country, including MGNREGS in 300 districts. State Governments have also been requested to transfer cash/benefits directly in the bank accounts of beneficiaries thereby cutting layers in the delivery process.

Finance Minister informed that in order to provide universal access to banking facilities for all households across the country through a bank branch or a fixed point Business Correspondent (BC) called Bank Mitra, 123,000 Bank Mitra have been set up in the country.

He said that steps are being taken to ensure that the Bank Mitra are provided with device capable of on line interoperable transactions using Rupay cards  and  Aadhaar enabled payment system.  Use of Rupay cards at other access points will help in reduction in cash  transactions and making the them digital which will move the economy towards a less cash society.

More information on the PMJDY can be seen at:

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