The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in 2014 with an aim to promote financial inclusivity in the economically backward sections of the nation. Since then, over 50 crore bank accounts have been opened under this scheme.
On August 28, 2023, the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme celebrated the ninth anniversary since its inception on August 28, 2014. As the government attempts to make financial inclusivity more attainable in India, one of the efforts is PMJDY that targets both unbanked and under banked populations. The PMJDY has made a great impact since launch and has witnessed a total deposit of Rs 2.03 lakh crore, as of August 28 this year. In addition, over 50 crore bank accounts have been opened under the revolutionary PMJDY scheme.
What is the eligibility criterion for PMJDY?
The PMJDY eligibility criteria are deliberately made inclusive to allow for an open enrollment process. Any Indian citizen, regardless of their age, has the right to open a bank account under this governmental scheme. The strategy primarily aims at financially excluded sectors of the society such as the rural areas, and the marginalised groups to ensure financial inclusion.
Minimum Balance Requirement for PMJDY Accounts
The bank accounts under PMJDY operate differently from traditional banking systems in its simplified minimum balance requirement. While conventional banks require huge amounts as initial deposits and a minimum monthly balance, PMJDY allows beneficiaries to have opened a zero-balance account. This feature is of paramount importance since it makes the formal banking services convenient to the poor people who could not afford the services previously.
What are the benefits of PMJDY?
The PMJDY scheme has positively impacted the unbanked sectors as well as the low income groups. Here are some of the benefits you can enjoy if you choose to enroll in this scheme:
1. Financial Inclusion: This enables marginalised sections of society to access formal financial services so that they can easily access government subsidies and benefits they are entitled to. In addition, managing finances would be easier on their end as they wouldn’t have to keep track of the cash they’re using.
2. Insurance Coverage: PMJDY accounts act as insurance providers for the weaker sections of the nation against accidents, thereby, reducing the financial risks associated with such emergencies.
3. Overdraft Facility: Traditional banking usually offers overdraft facilities, but not everyone can avail of them. However, PMJDY bridges this gap by providing low-income groups with an opportunity to access overdraft facilities in case of emergencies.
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