Financial Inclusion through PMJDY (Pradhan Mantri Jan Dhan Yojana)
1. What is PMJDY?
PMJDY is the government's flagship scheme for financial inclusion, launched on August 15, 2014, to provide access to banking services for all.
2. How many beneficiaries have been included under PMJDY?
As of July 19, 2023, there are over 49.56 crore PMJDY account holders, with over ₹2-lakh crore in total outstanding balances.
3. How has PMJDY contributed to financial inclusion?
PMJDY, along with Aadhaar and mobile technology (JAM trinity), has played a significant role in delivering banking services to underserved communities, with female account holders being more profitable for banks.
4. What are the growth drivers of PMJDY?
Public sector banks (PSBs) have aggressively pushed the scheme, resulting in a rapid increase in the number of beneficiaries. The average balance in these accounts is around ₹2,600-2,800.
5. How are banks attracting PMJDY holders to deepen financial engagement?
Banks offer various financial products like microinsurance, pension, and microcredit, helping them build credit histories of account holders and cater to their unfulfilled needs.
6. What role do public sector banks play in PMJDY?
PSBs are the main players in PMJDY, with around 24.40 crore beneficiaries. Private banks' participation is limited, possibly due to higher operating costs.
7. What other benefits does PMJDY offer?
PMJDY accounts are used for Direct Benefit Transfer (DBT) of welfare schemes, motivating more people to open accounts. The scheme has also facilitated the implementation of other key government schemes.
8. What are the challenges and areas for improvement?
Ensuring timely issuance of RuPay debit cards to all account holders and scrutinizing loan disbursements are essential steps to make PMJDY more effective in achieving financial inclusion goals.