Why Jan Dhan is critical to Modi's plans

On July 5, Narendra Modi government decided to make its national financial inclusion programme, Pradhan Mantri JanDhan Yojana (PMJDY) open-ended with several additional features. If you are yet to be familiar with PMJDY here are the details:

THE PROGRAMME

During his Independence Day speech on 15th August 2014, Prime Minister Modi announced the establishment of PMJDY as a scheme meant to increase banking penetration, promote financial inclusion and provide at least one bank account per household across the country in four years. It was formally launched on 28th August, that year. The government has now decided to continue the programme and keep it open-ended.

NEW FEATURES

• Existing overdraft limit of Rs 5,000 raised to Rs 10,000.
• No conditions for overdraft up to Rs 2,000.
• Age limit for availing overdraft facility revised from 18-60 years to 18-65 years.
• Expanded accidental insurance cover for new RuPay card holders raised from Rs 1 lakh to Rs 2 lakh for new PMJDY accounts opened after 28.8.2018.

CURRENT STATUS

• About 32.41 crore Jan Dhan accounts opened with more than Rs 81,200 crore deposit balance.
• 53 per cent women Jan Dhan account holders and 59 per cent Jan Dhan accounts are in rural and semi urban areas.
• More than 83 per cent operative Jan Dhan accounts (except states of Assam, Meghalaya, J&K) are Aadhaar seeded, with issuance of approx 24.4 crore RuPay cards to these account holders.
• More than 7.5 crore JanDhan accounts receiving DBTs.
• Banking Correspondents (BCs) have been deployed in 1.26 lakh Sub Service Areas (rural areas), each catering to 1000-1500 households.
• Nearly 13.16 crore Aadhaar Enabled Payment System (AePS) transactions have taken place through BCs during the month of July, 2018.
• 13.98 crore subscribers under Pradhan Mantri Suraksha Bima Yojana (PMSBY) with 19,436 claims, involving an amount of Rs, 388.72 crore settled so far.
• 5.47 crore subscribers under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) with 1.10 lakh claims, involving an amount of Rs. 2206.28 crore settled so far.
• 1.11 crore persons have subscribed for Atal Pension Yojana (APY).