The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been launched today by the NDA government by Prime Minister Narendra Modi in the national capital. The Pradhan Mantri Jan Dhan Yojana or financial inclusion plan was the brain child of the previous UPA government which has been nurtured, rejuvenated and revamped by the incumbent NDA government led by Prime Minister Narendra Modi.
In India, formal banking services have been extended only to 40 % of the households. More than 60 % of its populace remains outside the ambit of a formal financial sector. This is in sharp contrast to more than 80% of the families under the ambit of formal financial banking in the modern Western countries. India has till now not been able to achieve substantially in the field of financial inclusion under the previous UPA government. This rejuvenated and revamped Pradhan Mantri Jan Dhan Yojana comes along with the burden of heavy expectations from the rural populace.
With the slogan of “Mera Khaata-Bhagya Vidhaata”, the plan aims to open nearly 15 crore bank accounts in 7.5 crore households, with at least 2 accounts per family. The major objectives of this Pradhan Mantri Jan Dhan Yojana are:
- The Pradhan Mantri Jan Dhan Yojana is an ambitious scheme that will provide a host of benefits including a bank account, insurance and a debit card for all.
- The people will get zero minimum balance bank accounts free of cost from the banks under this scheme with 2 accounts in every house hold.
- It includes an accidental coverage of 1 lakh per person and a life insurance of Rs 30,000 per person that comes along with the bank account.
- The account bearer will be eligible for a Ru Pay card with his/her bank account.
- The people with “Active Bank Accounts” will be eligible for an overdraft of Rs 5000 after 6 months of activity.
The Pradhan Mantri Jan Dhan Yojana would be implemented in two phases covering the 7.5 crore financially excluded families in India. The first phase will cover nearly all the families with the facilities of a bank account and Ru Pay card which plans to end the financial untouchability in the country. The scheme, in its 1st phase, starting from 28-08-2014 would end on 15th August 2015 and would be implemented in a time bound manner with targets set to be achieved.
The PMJDY has been an ambitious plan of the NDA government and would complement the Prime Minister Narendra Modi’s call of a “Digital India”. The 2nd phase of the government’s Pradhan Mantri Jan Dhan Yojana would be implemented from 15th August’2015 to 15th August’ 2018 and would cover the aspects of micro insurance and various pension schemes under the name of Swavlamban.
The PMJDY would be greatly beneficial for the country. India has been one of the biggest markets of black money which is the money which is not accountable and not included in the formal banking sector. Nearly 90% of the money transactions in India are cash transactions which includes many transactions involves many transactions of unaccounted money. In sharp contrast with the European and American economies, they have only 4-5 % transactions as cash transactions. So this Pradhan Mantri Jan Dhan Yojana will definitely reduce the number of unaccounted transactions in the economy and help mainstream the entire financial sector.
India has been a country in which the rich can get a loan at low interest rates of 8-10 % per annum but the poor farmers, who do not have access to formal financial sector, have to take loans from money lenders and other sources which are not under the ambit of the RBI at very high interest rates of 30-40% per annum. This puts them in an infinite loop of extreme poverty which they are never able to get out from. The Pradhan Mantri Jan Dhan Yojana (PMJDY) plans to help the poor peasants out of this web.
The government’s all out efforts in this field of financial inclusion, are in a good view and the long term benefits of this ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY) will definitely be reaped by the Indian economy in the near future.