The Pradhan Mantri Jan Dhan Yojana (PMJDY), which on 28 August 2024 marked the 10th anniversary of its establishment, has been hailed as a great success in boosting financial inclusion.
The government-backed scheme seeks to ensure access to financial services, namely, a basic savings account, remittances, credit, insurance, and pension in an affordable manner for unbanked individuals.
Prime Minister Modi, who launched the scheme on 28 August 2014, said it personifies dignity, empowerment, and the opportunity to participate in the economic life of the nation.
As of 14 August 2024, the number of PMJDY accounts stood at 531.3m — including 353.7m accounts in rural and semi-urban areas, and 177.6m accounts in urban areas — and total deposits of INR2,312bn ($27.6bn). Around 55% of the PMJDY accounts (295.6m) are held by women.
Benefits
Among the benefits for a PMJDY accountholder was an accident insurance cover of INR100,000 ($1,192) with the coverage doubled to INR200,000 for accounts opened after 28 August 2018.
PMJDY accountholders are also eligible, among various schemes, for the following government-backed insurance plans that were launched in 2015:
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Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — term life insurance scheme for low-income groups;
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Pradhan Mantri Suraksha Bima Yojana (PMSBY) — accident insurance scheme;
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Atal Pension Yojana (APY) — guaranteed pension scheme for a savings account holder in the age group of 18-40 years who is not an income tax-payee.
The PMJDY also promotes financial literacy to help people understand personal finance.
Earlier governments too, had taken steps to promote financial inclusion but these failed to take off.