Why in news
- Pradhan Mantri Jan Dhan Yojana marked 12 years of implementation with total bank accounts reaching 59 crore.
What is PMJDY?
- National Mission for Financial Inclusion launched in August 2014 to ensure access to financial services like savings bank accounts, credit, remittance, insurance, and pension.
- Operates on the 'JAM' (Jan Dhan-Aadhaar-Mobile) trinity to enable direct benefit transfers (DBT) directly into beneficiaries' accounts.
Performance and Key Features
- Total cumulative deposits in Jan Dhan accounts crossed ₹3.17 lakh crore, with an average deposit per account rising 3.4 times over 12 years to ₹5,356.
- Provides zero-balance basic savings bank deposit (BSBD) accounts with an inbuilt RuPay debit card offering free accident insurance coverage.
- Offers an overdraft facility up to ₹10,000 to eligible adult account holders without collateral.
Why it matters
- Plugs leakage in government welfare schemes by facilitating seamless direct transfers.
- Drives formalization of rural savings and promotes financial literacy among unbanked households.
Key terms
Basic Savings Bank Deposit Account (BSBDA)
A bank account offering core services free of charge without requiring a minimum balance requirement.
JAM Trinity
The integration of Jan Dhan bank accounts, Aadhaar unique identity numbers, and Mobile numbers to facilitate direct social benefit transfers.
Prelims facts
- PMJDY provides an overdraft facility up to ₹10,000 and RuPay debit cards with built-in accident insurance.
Mains discussion
- Assess the role of financial inclusion in achieving inclusive economic growth and reducing administrative leakage through DBT.
Source: LiveMint News
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2016 · Q3 · GS III · 12 marks
Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society? Give arguments to justify your opinion. -
2015 · Q1 · General Studies · 2 marks
'Pradhan Mantri Jan-Dhan Yojana' has been launched for -
2026 · Q100 · General Studies · 2 marks
Consider the following statements about Multidimensional Poverty Index (MPI): 1. MPI is calculated using Alkire-Foster methodology. 2. MPI calculated by NITI Aayog has a total of twelve indicators. 3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP). Which of the statements given above is/are correct? -
2021 · Q2 · General Studies · 2 marks
With reference to casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the statements given above are correct?