The Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme was launched in August 2014 by Prime Minister Narendra Modi with the objective of ensuring affordable access to financial services like banking, credit, insurance, and remittances to disadvantaged and low-income groups. Phase 1 provided basic bank accounts and debit cards with accident insurance. Phase 2 seeks to promote activity in the bank accounts by providing overdraft facilities and credit guarantee funds, as well as micro insurance. As of January 2016, over 20 crore accounts have been opened under PMJDY with deposits over 30,000 crore. However, more work remains to achieve complete financial inclusion.

1. PMJDY Scheme
Financial Inclusion Summit 2016
Part - 3

2. PMJDY Scheme
Hon'ble Prime Minister, Sh. Narendra Modi launched the Pradhan Mantri Jan-
Dhan Yojana (PMJDY) scheme as a national mission for Financial Inclusion on
28th August, 2014. The objective of PMJDY scheme is to ensure affordable
access of financial services to the vast sections of the disadvantaged and low-
income groups. The financial services include credit, savings, insurance and
payments and remittance facilities. p

3. Executive Summary
It also brings indirect employment as the increased job opportunities attract
migrant labour who need places to stay, eat, buy their day to day needs etc. All
this has a big impact on the growth of the GDP of the country.
As with everything else there are contrarians views to what have been stated
above.
Such views portray FDI as a devil in disguise who in the medium term would
gobble up jobs available locally, create a monopoly for goods produced/traded,
increase the price of goods and services being dealt with and so on and so forth.

4. PMJDY Scheme
PMJDY seeks to achieve comprehensive financial inclusion of the excluded
sections by 14th August, 2018 in two phases –
Phase 1- In the first phase, which extended up to Aug 15, the scheme aimed at
providing Basic Banking Accounts and RuPay Debit card which has inbuilt accident
insurance cover of 1 lakh, seeding accounts with Aadhaar numbers to make
accounts ready for DBT payment, and creating awareness on banking services
through financial literacy camps

5. PMJDY Scheme
Phase II (15 Aug, 2015 - 14 Aug, 2018) - The second phase which is currently
underway, seeks to ensure activity in the bank accounts. This phase involves
sanctioning of Overdraft facility up to ` 5000/- after six months of satisfactory
operation / history, creation of Credit Guarantee Fund for coverage of defaults in
A/Cs with overdraft limit up to 5,000, and delivering Micro Insurance and other
unorganized sector Pension schemes like Swavalamban.

6. Government and RBI Initiatives
While these initiatives have brought more people into the banking ecosystem,
there is still a long way to go to achieve the vision of complete & comprehensive
financial inclusion.

7. PMJDY Scheme
The performance of the scheme so far has been remarkable. It is said, that
more has been done in a year via the prime minister's Jan Dhan Yojana
(PMJDY) than in several decades of traditional commercial banking. As of 20th
Jan 2016, more than 20 crore accounts with deposits in excess of 30,000 crore
have been opened under the PMJDY scheme.

8. Issues & Challenges
Another important problem is the low level of financial literacy and low
confidence about banking services and low awareness among the villagers on
the banking services. It has been witnessed that due to lack of awareness,
low financial knowledge, procedural hassles and inadequacy of the banking
infrastructure, many people living in the rural and semi-urban areas fail to
make informed decisions about savings, borrowings, investments and
expenditure.However, to address this issue, RBI has been providing financial
literacy to customers through Financial Literacy and Credit Counselling
Centers (FLCC).

9. PMJDY Scheme
The share of non-operative or zero balance accounts has fallen to 31.8% from
76.8% earlier. The significant drop in zero balance accounts indicates both
increased transfers of central and state government subventions (NREGA, LPG
subsidies, etc.) via these accounts, as well a development of a savings habit.

10. THANK YOU
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