PRADHAN

Highlights

MANTRI

JAN

DHAN

YOJANA

Indias Prime Minister, Narendra Modi, had announced about one of his pet projects:
PRADHANA MANTRI JAN DHAN YOJANA. This project is mainly to curb financial
inclusion. In one of the most populous country like India, there are only 58% of the citizens who
have proper bank accounts. The remaining 42% doesnt have; also, most of the rural parts of the
India do not have banks and basic facilities. To overcome all these, the Prime Minister, in his
Independence day speech had declared about this pet project and aims that 7.5 Crore accounts
will be opened by 26th January, 2015.
This scheme was rolled out in the country from 28th of August, 2014 and to everyones
surprise the Indian government had found its way into the record books when 1.5 crore new bank
accounts were opened on a single day through financial camps set up in 77,000 locations across
the nation. The advantage of having this account will be people can have zero balance accounts
with any bank, public or private. Know-your-Customer rules are simplified: only Aadhar-Card
proof is enough for opening your account and some more proofs that will be accepted are:
Attested NREGA cards, Voters ID card. People who dont even have these can show simplified
rules regarding proof of identity and address will be allowed for opening a more basic account.

What does the scheme offer??

Zero-balance account for every citizen of the country

KYC being simplified

Accident insurance of up to Rs. 1 Lakh comes for free with each account

Opening account before 26th January 2015, will get an extra life cover of Rs. 30,000

Each cardholder will get RuPay debit card and also will also be able to access a basic
form of mobile banking

Operative for at least six months, holders may be offered the overdraft facility for Rs.
2,500 and then for Rs. 3,000

One can check their balance and even can transfer funds using an ordinary phone (not the
smartphones) using a new technology introduced by National Payments Corporation of
India (NPCI).

POINTS TO REMEMBER:

Modi announced the project on 15th August and was implemented from 28th of August.

Pradhan Mantri Jan Dhan Yojana (PMJDY) : Slogan Mera Khata, Bhagya Vidata.

If everyone has a bank account then the subsidies for the poor can be transferred to their
accounts instead of sending it through corrupted people and agencies.

The premium on accident insurance will be paid by the NPCI.

It is safer to have a bank account rather than going to scam-filled private lenders and
institutions.

Every bank (both public and private) will be part of this scheme.

This mission will be completed in two phases: one from 15 th August 2014 to 14th August
2015 and the other from 15th August 2015.