Encouraging The Nation To Grow: Pradhan Mantri Jan Dhan Yojana
In 2014, India broke world records, by opening more than 18 million bank accounts in one week. This is solely attributed to the Pradhan Mantri Jan Dhan Yojana (PMJDY), the financial initiative announced by Prime Minister Narendra Modi to provide banking services to all households in the country. The scheme, launched on 15th August, 2014, sought to establish comprehensive financial inclusion for the purpose of liberating the poor and downtrodden from the vicious cycle of financial insecurity.
Through the said scheme, the Prime Minister has envisaged that each household will mandatorily be provided with a range of financial services including but not limited to opening a basic savings bank account without the need for a minimum balance, insurance, pension and making available credits to these households on a need-based system.
The scheme enables any person to open an account with a bank outlet at zero balance. On opening such an account, the holder is provided with an indigenous Debit Card (RuPay card). This RuPay card is inbuilt with Rs.1 Lakh accident insurance cover. Another significant feature is that through this scheme, an overdraft facility amounting to Rs.5,000 has been envisaged for all Aadhar linked accounts.
Above all else, this scheme affords an opportunity for the common man, particularly the uneducated population, to gain financial literacy about the functioning of a bank and the various schemes available. Some of these schemes include the Kisan Credit Card which is essentially an initiative for providing micro insurance to people through the RuPay platform.
Today, five years after the scheme was enforced, the country has witnessed nearly 100% coverage in terms of opening of bank accounts whereby 60% are in rural areas and the remainder are in urban areas. What makes this scheme even more successful is that it has encouraged women to adopt a more financially independent approach and this has manifested in the fact that over 50% of the women in the country have now become account holders. This has economically empowered them and has consequently spurred a behavioral change where women are also now able to heavily contribute to the economic growth of a household. It is apparent that the scheme has drastically affected the members of the society and has contributed to the welfare of the people