PMJDY adds 175 mn bank accounts with Rs22,000-cr deposits in first year

The Pradhan Mantri Jan Dhan Yojana (PMJDY) the biggest financial inclusion initiative in the world, has helped open more than 175 million bank accounts and raise deposits of more than Rs22,000 crore in these accounts in one year of its operation.

Prime Minister Narendra Modi on 28 August 2014 announce a Mega launch of the scheme across the country with simultaneous launch functions in state capitals and districts through 79 mega camps and more than 70,000 account opening camps all over the country.

The target of opening one account per household was achieved by 26 January 2015 barring in a few areas in J & K and left wing extremism affected districts. 

The scheme has been started with a target to provide 'universal access to banking facilities' starting with "Basic Saving Bank Account" with an overdraft of up to Rs5,000 subject to satisfactory operation in the account for six months and RuPay debit card with inbuilt accident insurance cover of Rs1 lakh and providing social security schemes, ie, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY).

Banks have opened 177.4 million accounts under PMJDY with deposit of more than Rs22,000 crore.

Aadhaar has been seeded in 41.82 per cent of account opened under PMJDY.

To ensure universal banking access more than 1.26 lakh Bank Mitras have been deployed with on-line devices capable of e-KYC based account opening and interoperable payment facility.

Banks organised mega financial literacy camps under PMJDY 'in coordination with various agencies and  opened financial literacy counters to spread awareness on PMJDY, use of RuPay cards etc.

Students in several schools and collage were also imparted training on financial literacy from September 2014 to April 2015.

Of the total, more than 1 million accounts have been found eligible for overdraft facility. Out of these overdraft facility has been availed by 1,64,962 account holders.

Life cover claims of Rs30,000  were settled in 847 claims and Rs1 lakh accident insurance claims were settled in 389 claims under the scheme.

As of 22 August 2015, about 81.7 million beneficiaries have been enrolled under the Pradhan Mantri Suraksha Bima Yojana and 27.6 million have been enrolled under Pradhan Mantri Jeevan Jyoti Bima Yojana. 

Another 6.83 lakh account holders have been enrolled under Atal Pension Yojana.

Zero balance accounts under PMJDY have declined from 76 per cent to 45.74 per cent between September 2014 and 19 August 2015, showing improvements in family finances.

''With close to 180 million bank accounts under the PMJDY and nearly every household having a bank account, wage payments and subsidies being directly routed to bank accounts, we indeed have come a long way,'' said finance minister Arun Jaitley.

''As a next step, the aim is to utilise these accounts for extending insurance, pension and credit facilities to those who are currently excluded from these benefits,'' he added.