On the 67th Independence Day, new Prime Minister Narendra Modi’s addressed to the nation by striving economic inclusion plan as Pradhan Mantri Jan Dhan Yojana. Bank accounts and RuPay debit cards with inbuilt insurance cover of Rs 1 lakh will be provided to crores of persons under this scheme.
Basic Motive of this scheme is providing banking accounts and helping the government to save billions of rupees on social spending. Great achievement to in respond of this scheme is open as many as 1 crore bank accounts on the first day of the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Mr. Narendra Modi’s informed bank officers by sending 7.25 lakh emails in concern of financial inclusion scheme which is Jan Dhan Yojana. According to an official relize 60,000 camps are opened in rural and urban areas.
Till the August 2018 scheme seeks to provide two accounts to 7.5 crore. In the lack of the valid official documents persons can ‘small accounts’ with banks which can be opened by the simple use of self-attested photograph, signature or thumb print in the presence of an official of the bank.
RBI has also clarified that there is no need of submitting two separate documents for proof of identity and proof of address. This launch will give a big-bang reforms needed to break out of a cycle of low growth and high inflation.
This proves helpful to support base among poor households with small savings. With the help of the process every bank holder will definitely get a debit card and accident insurance cover of up to 100,000 rupees ($1,654). 5,000 benefits will also provide to account holder as an overdraft facility.
Benefits and challenges of Jan Dhan Yojana
- The scheme would increase $43 billion subsidy bill in Indian economy, which is equivalent to more than 2 per cent of its GDP, for handouts of grain, fuel and fertiliser.
- It also diminishes the influence of moneylenders and other informal financing channels that operate outside the ambit of the Reserve Bank of India (RBI), blunting its monetary policy tools.
- This is the new direction for the poor and low-income groups.
- This scheme also foresees expansion of Direct Benefit Transfer under various Government schemes through bank accounts of the beneficiaries of PMJDY, sources privy to the contours.
- This yojana is likely to be undeveloped as soon as in the lack of mechanism on the proper place of repayments