Facts for Prelims (FFP)
Context: According to a recent RTI application, only 329 claims out of 647 claims filed for the accident insurance cover provided to bank account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) have been settled in the past two financial years.
|It aims to ensure access to financial services, namely, basic savings & deposit accounts, remittance, credit, insurance, and pension in an affordable manner.
|Benefits under PMJDY
|No requirement to maintain any minimum balance in PMJDY accounts and interest is earned on the deposit in PMJDY accounts; Rupay Debit card is provided to the PMJDY account holder; An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
|Insurance Facility under PMJDY
|· Account holders are eligible for two types of insurance covers –
o A life insurance cover of Rs. 2 lakhs under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
o An accidental insurance cover of Rs. 2 lakh under the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
· A premium of Rs. 330 per annum and Rs. 12 per annum, respectively.
· More than 50% of PMJDY account holders are women
· No premium is charged from account holders for the accident insurance cover for death or permanent disability.
· To avail of the insurance, the beneficiary must have performed at least one successful transaction with their debit card 90 days prior to the date of the accident.
|Challenges to PMJDY
|Lack of Awareness, Limited Infrastructure, Limited Resources, Dependence on Cash Transactions
|Other Initiatives to Increase Financial Inclusion in India
|Digital Identity (Aadhaar), National Centre for Financial Education (NCFE), Centre for Financial Literacy (CFL) Project, Expansion of financial services in Rural and Semi-Urban Areas, Promotion of Digital Payments