As we close on to six successful years of Shri Narendra Modi’s tenure as prime minister of what is considering to be world’s fastest growing super power India here is one of the visionary initiative by him that has played one of the vital role in India’s growth story over last half a decade.
Despite in past when India boasted about economic growth rates higher than most developed countries, a majority of the country’s population still remained unbanked. In August 2014, the ruling NDA government launched Pradhan Mantri Jan- Dhan Yojana. It was launched with the objective to fasten the process of financial inclusion and to provide universal access to banking facilities to the people of the country.
Financial inclusion which means a mode of offering banking and financial solution and services to each individual in the society, may be belonging to remotest corner of the state, without any form of discrimination. In simpler terms, it is providing banking facilities to unbanked. Expanding banking and related facilities to economically weaker section is root to reduce their poverty and subsequent inequality in income. Financial inclusion aids inclusive growth by expanding access to financial services to economically deprived and increasing economic opportunities for them.
Unfortunately, our nation has lost long 70+ years in providing this essential service to all. Financial inclusion should have been initial and primary step, immediately after independence and before or at least along with, execution of Five year plans.
What is this program and how does it function?
Pradhan Mantri Jan Dhan Yojana (PMJDY) is a programme by Government of India for each and every Bhartiya citizen (minor aged above 10 can open and operate account with guardian to manage it) that aims at expanding affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions.
The account is opened with Zero balance and does not make it mandatory for beneficiaries to deposit minimum balance in the account.
Jan Dhan Yojana, as it is popularly known, envisaged providing two bank accounts to each of the 7.5 Crore identified unbanked family across nation. Along with bank account, a Rupay debit card and inbuilt accident insurance cover of Rs.1 lakh was provided.
PMJDY was rolled out in two phases. In the first phase, starting from 15th August 2014 to 14th 2015., opening of One bank account per household was targeted.
In the first phase, Overdraft facility of Rs. 5000/- was sanctioned to every account holder. The age limit for over draft facility was kept from 18 to 60.
In the Second phase, overdraft limit was extended to Rs.10,000/- and the age limit was extended to 65 years.
In the second phase, Govt. of India aimed at extending opening of a bank account for each adult Bharatiya citizen and not keep it limited to each household. The limit of accidental insurance was also raised to Rs. Two Lakhs.
Handled by Ministry of Finance, under the Scheme 15 million bank accounts were opened on Inauguration Day, creating Guinness book world record.
सूखस्य मूलम धर्म: धर्मस्य मूलम अर्थ: अर्थस्य मूलम राज्यम।
Which puts the onus on state to involve people in economic activity.
“Mera Khata, Bhagya Vidhata “.is the Slogan inspiring every citizen to be part of nation building.
As per World Bank’s Findex data, 42% of women’s accounts are dormant, 23% are excluded from formal financial services and 35% are non dormant users. The Pradhan Mantri Jan Dhan Yojana (PMJDY) raised women’s ownership of bank accounts from 43% in 2014 to 77% in 2017.
PMJDY is considered to be one of the better scheme that has benefited women of our country as per the press release issued by MoF As on February 19, 2020, 20.33 crore beneficiaries out of 38.13 crore PMJDY beneficiaries are women which amounts to 53 per cent
The motive behind much thought Pradhan Mantri Jan Dhan Yojna, was not only to provide banking facilities to unbanked families but another very important aspect was covered under it. Adopting ‘Direct benefit transfer’ to the beneficiaries of various welfare schemes of Government through Jan Dhan account is remarkable achievement that excludes existence of middleman between various ministries and beneficiaries.
These subsidies include all healthcare subsidies, subsidies on LPG cylinders, subsidies of MNREGA, all farmers related subsidies etc are directly transferred in beneficiary ‘s account.
Under DBT Scheme, subsidy amount of LPG cylinder is credited in consumer’s account, even if they pay full amount at the time of purchase.
To throw light on some data, till date 38.33 Crore bank accounts have been opened up with Rs. 118,434.41 Crore as balance in these accounts. Hence, the deposits by the meagre and insignificant account holders has added colossal sum to the GDP of nation’s economy. The fund that was remaining out of economic purview has come in rotation.
Agreed, it is not viable to create banking infrastructure in remotest corners and thus, 1.26 lakh Bank Mitra have been appointed to cater as branchless banks. Additionally, it has created employment opportunities, too. Pradhan Mantri Jan Dhan Yojana
Recently, during COVID - 19 epidemic in the country, central Govt. would be transferring Rs.500/- per month in every woman Jan-Dhan account holder through DBT.
In traditional society as ours, Woman folk in rural areas do not have much say in the utilisation of her own earned money. Depositing her earning in her bank account acts as safety measure along with being root to empowerment for her.
The DBT (The Direct Benefit transfer) programme which was rolled out by previous UPA Govt.on 1st January 2013 for transferring subsidies of various welfare schemes through the Aadhar linked platforms.