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Launched on August 28, 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) marks a decade of remarkable achievements as the world’s largest financial inclusion initiative. The scheme aims to empower marginalized and economically disadvantaged sections of society. Before exploring its success story, it is crucial to understand the scheme’s core objectives and features.

Scheme Overview

PMJDY is a National Mission for Financial Inclusion that seeks to provide universal access to financial services, including basic savings and deposit accounts, remittances, credit, insurance, and pensions. The scheme is designed to extend banking services to those without access to traditional financial institutions.

Key Features of PMJDY

Basic Savings Bank Account: The scheme allows individuals without a bank account to open a Basic Savings Bank Deposit (BSBD) account at any branch or Business Correspondent (Bank Mitra) outlet, facilitating easy access to banking services. No Minimum Balance Requirement: PMJDY accounts do not require a minimum balance. However, if customers opt for additional services like cheque books, a minimum balance may be necessary.

Interest Earnings: Account holders earn interest on their deposits. RuPay Debit Card: PMJDY account holders receive a RuPay Debit Card, enabling them to withdraw money at ATMs across India. Accident Insurance Cover: Account holders receive accident insurance coverage of Rs.1 lakh, which increases to Rs. 2 lakh for accounts opened after August 28, 2018, when using the RuPay card.

Overdraft Facility: Eligible account holders can access an overdraft facility of up to Rs.10,000. Eligibility for Other Schemes: PMJDY accounts qualify for various government schemes, including Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and the MUDRA scheme.

Special Provisions for the Unbanked PMJDY simplifies the account-opening process, especially for those in rural areas who may lack the necessary documentation. This inclusive approach ensures that even the most marginalized individuals can access banking services.

Technological Integration

The scheme also offers simplified mobile banking services, enabling customers to check account details, transfer funds, and perform other banking operations conveniently.

A Decade of Success Over the past ten years, PMJDY has achieved significant milestones:

Number of Beneficiaries: As of August 14, 2024, PMJDY accounts number 53.13 crore, with 66.6% (35.37 crore) in rural and semi-urban areas. Notably, 55.6% (29.56 crore) of account holders are women.

Deposits: The total deposits under PMJDY accounts have reached ` 2,31,236 crores, a fifteenfold increase since the scheme’s inception.

Average Deposit: The average deposit per account stands at Rs. 4,352, a fourfold increase since August 2015, indicating a growing habit of savings among account holders.

RuPay Card Usage: RuPay card usage has surged, with 36.14 crore cards issued as of August 14, 2024. The number of digital transactions has soared, with UPI financial transactions rising from 535 crore in 2018-19 to 13,113 crores in 2023-24.

Conclusion

On the occasion of PMJDY’s 10th anniversary, the Union Finance and Corporate Affairs Minister highlighted the scheme’s pivotal role in fostering financial inclusion and empowering marginalized communities. The minister emphasized that PMJDY has revolutionized the banking landscape in India by providing universal, affordable, and formal financial services to the previously unbanked.

PMJDY serves as a crucial tool for Direct Benefit Transfers, ensuring seamless and efficient disbursement of subsidies and payments. Moreover, the scheme’s integration with Jan Suraksha Schemes provides essential life and accident insurance to millions in the unorganized sector.

In conclusion, the success of PMJDY underscores the importance of a mission-driven approach, regulatory support, robust digital infrastructure, and effective public-private partnerships. As the world’s largest financial inclusion program, PMJDY continues to transform the financial landscape of India with its innovative digital solutions and far-reaching impact.