Lec.3. JANDHAN YOJANA

JANDHAN YOJNA
Definition
• Pradhan Mantri Jan Dhan Yojana, is
financial inclusion program of Government
of India which is applicable to 10 to 65
years age group.
• Aims are to expand and make affordable

access to financial services such as bank
accounts, remittances, credit, insurance and
pensions.
Cont…
• This financial inclusion campaign was launched by the Prime Minister
of India Narendra Modi on 28 August 2014.
• He had announced this scheme on his first Independence Day speech

on 15 August 2014.
• Run by Department of Financial Services, Ministry of Finance, under

this scheme 15 million bank accounts were opened on inauguration
day.
• The Guinness Book of World Records recognized this achievement,

stating: "The most bank accounts opened in one week as a part of the
financial inclusion campaign is 18,096,130 and was achieved by the
Government of India from August 23 to 29, 2014“.
• By 27 June 2018, over 318 million bank accounts were opened and
over ₹792 billion (US$12 billion) were deposited under the scheme.
Cont…
• The scheme was launched by PM Narendra Modi on
15 August 2014. Slogan of the Scheme is "Mera
Khatha, Bhagya Vidhatha (meaning "My account
brings me good fortune”).
• The scheme was launched after the failure of
previous such schemes including Swabhimaan.
• Swabhimaan was a campaign of the Government of
India which aims to bring banking services to large
rural areas.
• It was launched by Sonia Gandhi, the Chairperson of
the United Progressive Alliance party in the presence
of Shri Pranab Mukherjee, the Union Finance Minister
and Namo Narain Meena, the Union Minister of State
for Finance on February 10, 2011.
BENEFITS
• Opening of no-frills accounts: The Bank accounts opened under PMJDY do
not require minimum balance. An overdraft facility up to ₹10,000 (US$140) is
also available after six months. Interest is on deposit. Free RuPay debit card
for account.
• Relaxation on know-your-customer (KYC) norms: Persons who do not have
valid identification document can also open bank account. This type of
account call "Small Account" , can be regularized within one year.
• Engaging business correspondents (BCs): Account opening and bank
transactions are through business correspondent. Business correspondents
are usually appointed in remote areas where banks do not have physical
branches.
• Use of technology: Bio-metric based account opening and transaction are
available through business correspondent. This eases banking operations
for illiterate people.
• Direct Benefit Transfer: The government subsidies are directly transferred to
the beneficiary's account. This reduces delay and leakage to get service.
• Insurance: Accidental insurance cover of ₹200,000 (US$2,900) provides life
cover of ₹30,000 (US$430) payable on death of the beneficiary.
PERFORMANCE
• Due to the preparations done in the run-up, as mentioned above, on
the inauguration day, 15 million bank accounts were opened.
• The Prime Minister said on this occasion- "Let us celebrate today as

the day of financial freedom."
• By September 2014, 30.2 million accounts were opened Bank with

2.024 million accounts, Canara Bank 1.621 million accounts, Central
Bank of India 1.598 million accounts and Bank of Baroda with 1.422
million accounts.
Cont…
• On 20 January 2015, the scheme entered into
Guinness book of world records setting new record
for 'The most bank accounts opened in one week‘.
• The balance in Jan Dhan accounts rose by more

than ₹270 billion (US$3.9 billion) between 9
November 2016 and 23 November 2016.
• 1.9 million householders have availed the overdraft
facility of ₹2.56 billion (US$37 million) by May 2016.
• Uttar Pradesh and West Bengal have got 29% of the

total deposits under the scheme,
whereas Kerala and Goa became the first states in
the country to provide one basic bank account to
every household.
Cont…
• The total number of account holders stood at 294.8
million, including 176.1 million account holders from
rural and semi-urban branches.
• A total of 227 million RuPay cards have been issued by

National Payments Corporation of India (NPCI) till
August 2017.
• The amount of deposits rose to ₹656.97

billion (US$9.5 billion) by August 2017.
• According to an analysis of various studies, "Beyond

enabling account ownership and the use of financial
services, the PMJDY also facilitated financial inclusion
for a variety of demographics.
Cont…
• While the programme has made significant headway
towards genuine financial inclusion, it is clear that
improving policy communication, widening and
deepening progress in low-income states, and
ironing out the kinks in the bank-agent model will be
crucial if these hard-fought gains are to prove
sustainable.
• At least 300 million new families have got Jan Dhan

accounts in which almost ₹650 billion (US$9.4 billion)
have been deposited, Prime Minister Narendra Modi
said on 28 August 2017, on the eve of third
anniversary of the scheme aimed at financial
inclusion.
CRITICISMS
• The scheme has been criticized by opposition as an effort to
please voters that has created unnecessary work-burden on
the public-sector banks.
• It has been claimed that the poor deserve food more than bank
accounts and financial security. Further, these accounts have
not yet added considerable profits to PSU banks.
• According to the experts, offers like zero balance, free

insurance and overdraft facility would result in duplication.
• Many individuals who already have bank accounts may have

had accounts created for themselves, lured by the insurance
covers and overdraft facilities.
[
• As per the scheme, a very few people are eligible to get the life
insurance worth ₹30,000 (US$430) with a validity of just five
years.
Cont…
• The claimed overdraft facility has been completely left
upon the banks. As per the government notice, only
those people would get the overdraft facility whose
transaction record has satisfactory operations in their
account for some time.
• In addition, while the Indian Government was actively

attempting to promote financial inclusion through this
scheme, the Reserve Bank of India, permitted banks to
charge customers for conducting ATM transactions
beyond a certain number of times per month.
• This effectively prevented people from easily

accessing their own savings and discouraged them
from using formal banking channels.
FINANCIAL INCLUSION
FINANCIAL INCLUSION
• Financial inclusion is where individuals
and businesses have access to useful and
affordable financial products and services
that meet their needs that are delivered in
a responsible and sustainable way.
• Financial inclusion is defined as the
availability and equality of opportunities to
access financial services.

Lec.3. JANDHAN YOJANA

Uploaded by

Copyright:

Available Formats

Lec.3. JANDHAN YOJANA

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lec.3. JANDHAN YOJANA

Uploaded by

Copyright:

Available Formats

JANDHAN YOJNA

• Aims are to expand and make affordable

• He had announced this scheme on his ﬁrst Independence Day speech

• Run by Department of Financial Services, Ministry of Finance, under

• The Guinness Book of World Records recognized this achievement,

• The Prime Minister said on this occasion- "Let us celebrate today as

• By September 2014, 30.2 million accounts were opened Bank with

• The balance in Jan Dhan accounts rose by more

• Uttar Pradesh and West Bengal have got 29% of the

• A total of 227 million RuPay cards have been issued by

• The amount of deposits rose to ₹656.97

• According to an analysis of various studies, "Beyond

• At least 300 million new families have got Jan Dhan

• According to the experts, offers like zero balance, free

• Many individuals who already have bank accounts may have

• In addition, while the Indian Government was actively

• This effectively prevented people from easily

You might also like