Six years of PMJDY: Rs 10,000 overdraft facility, RuPay Card insurance and more features to know

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August 28, 2020 7:41 PM

Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed six years. In this period, 40.35 crore rural PMJDY accounts have been opened across the country.

six years of PMJDYPMJDY scheme has completed six years.

Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed six years. In this period, 40.35 crore rural PMJDY accounts have been opened across the country. Of which, 63.6 per cent are rural PMJDY account while 55.2 per cent are accounts of women. In the first year of the scheme, as many as 17,90 crore accounts were opened under the scheme, according to a statement by Ministry of Finance.

Commenting on the completion of six years of the scheme, Prime Minister Narendra Modi today tweeted, “Today, six years ago, the Pradhan Mantri Jan Dhan Yojana was launched with an ambitious aim of banking the unbanked. This initiative has been a game-changer, serving as the foundation for many poverty alleviation initiatives, benefitting crores of people.

Thanks to the Pradhan Mantri Jan Dhan Yojana, the future of several families has become secure. A high proportion of beneficiaries are from rural areas and are women. I also applaud all those who have worked tirelessly to make PM-JDY a success.”

In the last six years, several new features have been added to PMJDY account. Here we take a look:

Initially, PMJDY scheme was based on six pillars:

– Universal access to banking services – Branch and BC
– Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every household
– Financial Literacy Program to promote savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
– Creation of Credit Guarantee Fund to provide banks some guarantee against defaults
– Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on accounts opened between 15 Aug 2014 to 31 January 2015
– Pension scheme for Unorganized sector

PMJDY accounts: What’s new

Since 28-8-2018, the government extended the scheme with some new features:

The focus of PMJDY scheme was shifted from ‘Every Household’ to Every Unbanked Adult’

– RuPay Card Insurance features were extended. Free accidental insurance cover on RuPay cards was increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.

– Overdraft facilities were modified. Overdraft limit was doubled from Rs 5,000 to Rs 10,000. The facility of OD up to Rs 2,000 without conditions was also introduced.

The upper age limit for Overdraft facility was increased from 60 to 65 years

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