Pradhan Mantri Jan Dhan Yojana (PMJDY), which was announced on the eve of Independence by the India’s Prime Minister Narendra Modi, has been launched today. The main motto of this scheme is to bring every household into the ambit of banking.
The name “Jan Dhan Yojana” which means People Wealth Scheme was chosen by the evaluation team from the 6000 entries received in an online competition on the MyGov Platform.
The tag line or the slogan of Pradhan Mantri Jan Dhan Yojana is “Mera Khata – Bhagya Vidhaata”, which means “My Bank Account is Creator of My Good Fortune”.
Features of Pradhan Mantri Jan Dhan Yojana
1. Pradhan Mantri Jan Dhan Yojana is a financially inclusive scheme which aims at opening a bank account for every household.
2. The scheme will cover both rural and urban area people.
3. RuPay Debit Card will be provided to all bank account holders under Jan Dhan Yojana.
4. All RuPay Card holders will get an unconditional insurance cover of Rs.30,000 from LIC.
5. An accidental policy of Rs.1 lakh will also be provided to card holders from HDFC Ergo. This policy will provide cover in case of permanent disability or death.
6. Further, claim of accidental policy by HDFC Ergo will be settled only if the RuPay Debit Card is active.
7. Active debit card means, the card has been swiped within 45 days of making a claim.
8. An aide of Rs.2,500 as overdraft will be provided once the bank account is linked with Aadhar Card and surpasses 6 months.
9. This overdraft limit may further be increase to Rs.5000 on the discretion of the bank.
10. PMJDY is a two phase plan, first phase which operates from August 2014 to August 2015 emphasize on opening bank accounts and providing credit facilities.
11. The second phase which operates from August 2015 to August 2018 would emphasize on micro-insurance and pension schemes like “Swavalamban”.
Image Courtesy: Economic Times
Jan Dhan Yojana Conflicts with RBI:
It seems that there is a lack of tuning between the Central Government and RBI. Earlier this year on the recommendation of Nachiket Mor committee RBI tried to drive financial inclusion program by including a new class of banks “Payment Banks”. These banks are created to reach the unbanked masses of India by accepting deposits and handle remittances. However Payment Banks can only acts as a mediator and cannot have their own treasury, all the money collected shall be deposited in G-Secs.
In addition to above, RBI has also restricted the free usage of ATM (debit) cards to 3 from 5 earlier this month while under Jan Dhan Yojana scheme an active RuPay debit card is must for claiming HDFC Ergo insurance.
So it seems that both RBI and Government are on the different path of mission Financial Inclusion however there is lot more to see in coming few days as the finer details of Pradhan Mantri Jan Dhan Yojana are yet to be disclosed.