The scheme intends to accomplish the objective of ensuring a bank account for each household.
As the government completes 100 days, it has launched its most ambitious scheme. The Pradhan Mantri Jan Dhan Yojna has been set in motion on Thursday hoping to further financial inclusion. The scheme hopes to accomplish the objective of housing for all by providing basic banking accounts with a debit card with in-built accident insurance.
Speaking at the inaugural ceremony in the Vigyan Bhawan in Delhi, Prime Minister Narendra Modi said that over one crore bank accounts had already been opened on the first day. “This is a record for the banking and insurance sector to include over 1 crore people in one day for insurance. We have to get rid of financial untouchability,” he said.
Those who open accounts under this scheme by January 26 will get medical insurance of Rs 30,000. The scheme aims to provide two accounts to 7.5 crore identified households by August 2018.
Finance Minister Arun Jaitley said 10 crore people do not have bank account in India and the Pradhan Mantri Jan Dhan Yojana will be carried out on mission mode.
MoS Finance Nirmala Sitharaman, who was also present at the occasion, said poor people will have access to financial products via this scheme and public sector banks will organise more than 60,000 camps in rural and urban areas. She further added that in the earlier financial inclusion schemes there was no focus on debit cards, but this scheme provides that facility.
The first phase of this progamme, starting this month, would end in August next year. The second phase will start from 2015 till 2018. Some of the key features of this scheme include RuPay Debit Card with in-built Rs 1 lakh accident insurance cover, Rs 5,000 overdraft facility for Aadhar-linked accounts and minimum monthly renumeration of Rs 5,000 to business correspondents who will provide the last link between the account holders and the bank.
Interestingly, the scheme has been named after collecting public opinion through a competition.