Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan Dhan Yojana (PMJDY): Financial inclusion program to ensure access to financial services like banking, savings, remittance, credit, insurance, pension, etc., for the excluded sections.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion program launched by the Government of India on 28th August 2014. The scheme aims to ensure access to various financial services like banking, savings, remittance, credit, insurance, and pension for the excluded sections of society, particularly those from low-income households.

### Key Objectives of PMJDY:

1. **Universal Access to Banking**: To provide banking facilities to every household across the country, especially in rural and remote areas.

2. **Financial Literacy**: To promote financial literacy and awareness among the rural population, encouraging them to use formal banking services instead of relying on informal channels.

3. **Encouraging Saving Habits**: To promote a culture of saving among the low-income population by facilitating the opening of bank accounts.

4. **Access to Credit**: To extend credit facilities to the unbanked population, enabling them to access credit for various purposes such as entrepreneurship, education, and emergencies.

5. **Direct Benefit Transfer (DBT)**: To facilitate the transfer of government subsidies, benefits, and payments directly into the bank accounts of beneficiaries, eliminating leakages and delays in welfare schemes.

### Key Features of PMJDY:

1. **Zero Balance Accounts**: PMJDY accounts can be opened with zero balance, making them accessible to individuals who may not have the means to maintain a minimum balance.

2. **Rupay Debit Card**: Each PMJDY account holder is issued a Rupay debit card, enabling them to withdraw cash from ATMs, make purchases, and avail of various banking services.

3. **Accidental Insurance Cover**: PMJDY account holders are eligible for an accidental insurance cover of ₹2 lakh, providing financial security in case of unforeseen accidents.

4. **Overdraft Facility**: After satisfactory operation of the account for six months, PMJDY account holders can avail of an overdraft facility of up to ₹10,000, providing them with access to credit.

5. **Mobile Banking and SMS Alerts**: PMJDY accounts are linked to mobile numbers, allowing account holders to perform basic banking transactions through mobile banking and receive SMS alerts for transactions.

### Achievements of PMJDY:

- As of January 2022, over 43 crore PMJDY accounts have been opened, making it one of the world's largest financial inclusion initiatives.

- PMJDY has played a crucial role in increasing banking penetration in rural and remote areas, bringing millions of people into the formal banking system.

- The scheme has facilitated the direct transfer of subsidies and benefits to the intended beneficiaries, reducing leakages and corruption in welfare schemes.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has emerged as a transformative initiative in India's journey towards financial inclusion, empowering millions of marginalized individuals with access to formal banking services and fostering financial empowerment and inclusion across the country.