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Jan Dhan

Topics covered:

  1. Inclusive growth and issues arising from it.


Jan Dhan


What to study?

For prelims: key features and benefits of the scheme.

For mains: significance and benefits of the scheme.


Why in News? Five years after its launch, the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme has almost achieved a total balance of ₹1-lakh crore.


Key facts:

  • According to the latest data, the total balance in these basic bank accounts stood at ₹99,752 crore with 35.50 crore beneficiaries.
  • Public sector banks have the lion’s share in total balance at ₹79,177 crore, followed by regional rural banks and private sector banks maintaining ₹17,648 crore and ₹2,926 crore, respectively.
  • The scheme focusses on rural areas with primacy given to women. Of the 35.50-crore account holders, those from rural and semi-urban regions were 21 crore. Female beneficiaries were 18.88 crore.
  • Total balance under the scheme, launched on August 15, 2014, grew faster in the last there years, which was boosted by demonetisation in November 2016. It gathered momentum last year and gained rapid pace in the last six months, leading to scepticism on the possible link between elections and spurt in balances.
  • The average balance in PMJDY accounts has also been going up.


About PMJDY:

  • The primary aim of this scheme is to provide poor people access to bank accounts.
  • The scheme covers both urban and rural areas of India.
  • All bank accounts will be linked to a debit card which would be issued under the Ru-Pay scheme. Rupay is India’s own unique domestic card network owned by National Payments Corporation of India and has been created as an alternative to Visa and Mastercard.
  • Under the first phase of this scheme, every individual who opens a bank account becomes eligible to receive an accident insurance cover of up-to Rs 1 Lakh for his entire family.
  • Life Insurance coverageis also available under PMJDY. Only one person in the family will be covered and in case of the person having multiple cards/accounts, the benefit will be allowed only under one card e. one person per family will get a single cover of Rs 30,000.
  • The scheme also provides incentives to business and banking correspondentswho serve as link for the last mile between savings account holders and the bank by fixing a minimum monthly remuneration of Rs 5000.


Sources: the Hindu.