Government of India lays special emphasis on financial inclusion of all its citizens since it is a vital step towards elimination of poverty. Segregation of a large number of the population from any access to financial services hinders the progress of our country. A financial scheme to empower the citizens was required in priority so that everybody can reap the benefits of growth and development.
Keeping this in mind, Hon’ble Prime Minister Shri Narendra Modi announced the biggest financial inclusion initiative in the world, called the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 15th August 2014 from the ramparts of the Red Fort and launched on 28th August 2014 across the country.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a National Mission for Financial Inclusion encompassing a combined approach to bring about comprehensive financial inclusion of all the households in the country and is an important priority of the Government since it is an enabler for inclusive growth. Inclusive growth is crucial for achieving sustainable economic development.
The need of launching this Yojana was felt because of the fact that less than two-thirds of the households in the country have access to banking facilities even after 67 years of independence. The plan visualizes and guarantees universal access to banking facilities like Banking/Savings & Deposit Accounts, Remittance, Credit, Insurance and Pension in an affordable manner, with at least one basic banking account for every household. As per the Yojana the beneficiaries will also get a RuPay debit card with an inbuilt accident insurance cover of INR 1 lakh.
Inclusive Growth – “Sab Ka Sath Sab Ka Vikas” is central to the development philosophy of Pradhan Mantri Jan-Dhan Yojana (PMJDY) .This Yojana would enable all households, urban as well as rural to gain easy and universal access to financial services. Inclusion in the banking system will open the gateway of benefits that comes along with modern financial system to the people in general. Through this Yojana, households will not only have bank accounts with original RuPay Debit cards but will also get access to credit for economic activity and to insurance and pension services for their social security.
Objective of “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” is guaranteeing access to various financial services like accessibility of basic savings bank account, access to need-based credit, remittances facility, insurance and pension to the weaker sections & low-income groups including women, small and marginal farmers and laborers, both rural and urban. Only with effective use of technology will this deep infiltration at affordable cost be possible. Hence attention to technical issues like poor connectivity, on-line transactions will be paid. Mobile transactions through telecom operators and their established centers as Cash Out Points are also planned to be used for Financial Inclusion under the Scheme.
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