Insight Into Jan Dhan Yojana – General Studies [ Detailed Analysis - Economics ]
The central government lead by our Prime Minister Narendra Modi launched various social welfare schemes throughout the country within a short span of time. Jan Dhan yojana was one of those schemes. This was a financial inclusion campaign launched on 28th August 2014.
Around 1.5 crore bank accounts were opened under this scheme. Guinness book holds the achievements made under this yojana. By 1 June 2016, over 22 crore (220 million) bank accounts were opened and ₹384.11 billion (US$5.7 billion) were deposited under the scheme.
What is Jan Dhan Yojana?
Why Jan Dhan Yojana?
Facilities Available under This Scheme
- Under this scheme, earlier it was announced that one back account for each household in India is a NATIONAL PRIORITY. Those who were opening a bank account will be entitled to:
- One zero balance account and a debit card from RuPay to access the account.
- The account holders are entitled to an accidental insurance coverage of Rs 1 lakh provided by HDFC Ergo.
- The account holder will be provided a Kisan Card as well.
- A facility of overdraft of Rs 5000 will be provided if the account remains active for six months.
- The accounts holders will be able to check their account balances over phones. Even transferring of funds can be done through phones.
- National Unified USSD platform made mobile banking available to poor people.
Life Insurance under This Scheme
Under the scheme, the account holders will be given insurance of worth Rs 30000 coverage if they comply with specifications of the scheme including opening an account till 26th January 2015. Even An accidental insurance coverage of Rs 200000 will be provided.
Loan Benefits under This Scheme
The account holder can take loan up to Rs 5000 from the bank after six months of active account. Thus, this amount might be insignificant for many but this scheme is mostly for the people below poverty line, who struggle to sustain their everyday living. The loan is a hope for those who can invest the loan and have a profitable outcome.
Mobile Banking Facilities
Through the technology of using smart phones for net banking is not novel anymore but the scheme has allowed its holders to avail the facilities of net banking through normal cell phones, which is now affordable to the public.
Possible Negative Aspects of Jan Dhan Yojana
- Published on: September 22, 2016