Article, Paragraph, Essay on “Jan Dhan Yojana” article for Class 10, Class 12, Graduation Classes and descriptive examination

Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana was announced by the Prime Minister of India Shri. Narendra Modi in the year 2014, on the eve of Independence Day. The scheme objective is to secure every Indian in the rural or urban sector to the typical banking system. This will help the financial condition of the account holders as well as promote social security goals of the central government. The scheme is run by the Ministry of Finance and holds the Guinness World Record for the maximum number of accounts open in a week anywhere in the world. Over 180, 96,130 accounts were opened by individuals during the first week of launch of the scheme.

Under the Jan Dhan scheme, any individual who is older than 10 years of age and does not possess a bank account can open one in his or her name with an opening deposit of zero. Accounts under this scheme can be opened with any registered bank or with Business Correspondent Outlet intended especially to ease account opening under the Jan Dhan Scheme.

ADVANTAGES OF PRADHAN MANTRI JAN DHAN YOJANA

Pradhan Mantri Jan Dhan Yojana was launched at a enormous extent to take under the purview of banking all citizens of the country; irrespective of their financial status or regional location. The scheme has seen great interest among customers from both rural and urban areas. The scheme is a social policy intended at provide banking facilities to even those who do not have the money to pay for the minimum account balance at the time of account opening. The Jan Dhan Yojana aims to help the inexpensively weaker sections of the society to become fiscally confident.

• Loan advantage against Pradhan Mantri Jan Dhan Yojana

Individuals whose Jan Dhan account completes 6 months are eligible to obtain loans of up to Rs.5000. Although the loan amount seems insignificant as compared to that offered as standard loan by various banks, but is quite substantial when we think of the economic status of individuals that this scheme is aimed at uplifting. The Pradhan Mantri Jan Dhan Yojana is aimed at financial inclusion of the economically weaker section of the society. Most importantly it aims to cover people from the rural areas as well as the unorganised sector of the urban and semi-urban areas.

• Mobile Banking with Pradhan Mantri Jan Dhan Yojana

Mobile Banking is not a new innovation anymore. Various private and public banks offer mobile banking facilities to customers. However, keeping in mind the economic status of people below poverty line, Pradhan Mantri Jan Dhan Yojana aims to make available certain basic financial transactions via ordinary mobile phones and not smart phones. This step will ensure that even people from rural areas and those from the unorganized sector have access to quick and convenient banking options. The idea behind this feature is to innovate as much as possible to ensure financial inclusion as well as financial security to as many Indians as possible.

• Insurance benefits under the Pradhan Mantri Jan Dhan Yojana

The best and the most significant benefit of Pradhan Mantri Jan Dhan Yojana is that it brings under the purview of insurance, a lot of people who could not have availed insurance out of their own pocket. The scheme offers a life cover of Rs.30,000 to customers who comply with certain norms of the scheme and offers Rs.2,00,000 as insurance sum in the event of death due to accident.

• Zero Balance Requirements

To open a Jan Dhan account is free of cost and does not require any amount to be deposited initially. Most savings bank accounts require an initial deposit to open a bank account and also a minimum balance to be maintained on a monthly or quarterly basis. But with a Jan Dhan account, these requirements are done away with so that anyone can open this account even if they do not have money to deposit right away.

• Interest on Deposits

Deposits made into the Jan Dhan accounts are eligible to earn interest at the rate declared which is subject to change from time to time. Interest rates will be similar to that offered by various public and private banks.

• Cheque Book Facility

Account holders can avail a cheque book from their bank if they require. This will be helpful in making payments without cash. To get a cheque book, there is a minimum balance required in the account.

• Savings for the family

The Jan Dhan scheme provides for an account for each family. This facility ensures they have some form of financial inclusion that allows them to start saving and growing their money.

• Debit Card Facility

Along with the Jan Dhan bank account, every family will get a RuPay debit card. This gives account holder’s easy access to their money when they need it. They can deposit the money and earn interest on it and withdraw it from an ATM when the need arises.

• Overdraft Facility

After completing six months of satisfactory operations of the Jan Dhan account, an overdraft facility of Rs.5000 might be offered. In case the overdraft availed is paid back promptly, the bank may increase this limit to Rs.15, 000, at its own discretion. Although the loan amount seems insignificant as compared to that offered as standard loan by various banks, it is quite substantial when we think of the economic status of individuals that this scheme is aimed at uplifting. The Pradhan Mantri Jan Dhan Yojana targets the economically weaker section of the society. Most importantly, it aims to cover people from the rural areas as well as the unorganised sector of the urban and semi-urban areas.

• Life Insurance

The best and the most significant benefit of Pradhan Mantri Jan Dhan Yojana is the provision of insurance. The opportunities of insurance coverage are limited in the rural areas and to most it is impossible to think of paying the premium for a policy. With the Jan Dhan account, customers who fulfill the eligibility conditions will receive Rs.30,000 life cover which will be payable to the beneficiary upon the death of the account holder.

• Personal Accident Insurance

The scheme also provides for personal accident insurance under the following conditions: The Rupay card holder must have performed at least one financial transaction successfully within 90 days from the date of accident. Non-financial customer-induced transactions will also be included. Transactions should be carried out at any bank branch, bank mitra, ATM, POS, or E-com channel. This accident insurance is provided under the Rupay Insurance Program 2016-17.

• Aadhaar-Linked Account

Pradhan Mantri Jan Dhan Yojana is an Aadhaar-linked scheme which helps avoid fraud related to account opening. Individuals who receive various benefits under various government schemes like LPG subsidy can now receive the amount directly into their PMJDY accounts. Aadhaar-linking ensured transparency, eliminates fraud and proves to be highly beneficial for the government and the citizens.

• Access to Pension Schemes

Holding a Jan Dhan account will provide easy access to pension schemes available from the government. It is important for every citizen to start saving even a small amount to ensure a dignified old age.

• Easy Transfers

Pradhan Mantri Jan Dhan account can be used to transfer money to and from various other public and private banks across the country. Account transfer for Pradhan Mantri Jan Dhan Yojana can be done from one bank in the country to another. This is possible since all participating banks are connected via the core banking solution or CBS.

TARGET OF THE PRADHAN MANTRI JAN DHAN YOJANA

The scheme was targeted at the rural and unorganised sector by sending emails to banks informing them of the PMJDY scheme. The scheme was implemented with high targets such as opening 1 lakh accounts on the first day. Over the next few years, the government hoped to open 7.5 crore accounts but surpassed this number by a great margin. The reality of this scheme is reflected in the data below as on 04.01.2017:

• The government has opened 26.51 crore Jan Dhan accounts in the rural and urban sectors.
• Currently, there are 16.11 crore accounts opened in the rural areas and 10.40 crore accounts in the urban areas.
• Out of these accounts, 24.61% have a zero balance. Although this number has been disputed due to the fact that banks have been depositing Re.1 up to Rs.10 in accounts to bring down the percentage of zero balance accounts.
• The total balance in these accounts amounts to Rs.70070.79.
• 19 Crore accounts have been linked to Aadhaar.
• 93 Crore Rupay cards have been issued.

The scheme has faced a number of problems but has also proven to be a blessing for many. Through the PMJDY, crores of people now have insurance, access to overdraft facilities and loans, and can enjoy the benefits of Aadhaar. Investigations are unearthing underhanded practices carried out by banks – such as depositing Re.1 in zero-balance accounts – due to immense pressure levied on them to make the scheme work. Due to this, many people – who need it the most – might lose out on benefits that might crop up in the future. This does not mean the scheme is a failure, but does need to be corrected so that the targeted segment of society reaps optimum benefits from the scheme.