PM Narendra Modi, amidst huge media hype, launched the PMJDY in 2014 as a National Mission to bring about financial inclusion of all households in the country. The objective is to provide basic financial services through a savings bank account to the weaker sections. The account holders will be provided a basic Debit Card, Accident Insurance Cover and an Overdraft facility.The scheme has been planned in two phases:
The scheme has much simpler Know-Your-Customer (KYC) rules. The scheme offers a couple of freebies too, like an accident insurance of up to Rs 1 lakh comes free with each account. Census 2011 showed India has witnessed a serious lack in financial inclusion. This scheme aims to rescue low-income groups from the clutches of usurious money lenders and integrate them into the formal banking and finance channel. The Direct Benefit Transfer (DBT) money will flow into these accounts, saving money lost in leakages.
The two aspects to financial inclusion- bank accounts and access to credit and, concomitantly financial deepening of the economy are addressed to some extent. The RBI has its concerns with the scheme but it says Jan Dhan Yojana to be a ‘Game Changer’. The scheme has started off with a bang, but all eyes are on whether the Game actually get’s changed.
No comments:
Post a Comment