Deposits in Jan Dhan accounts cross Rs 1 lakh crore

During budget 2019-20, Finance Ministry allocated Rs 1,03,927 crore to Home Affairs which could possibly be funded through the Jan Dhan deposits

Deposits in Jan Dhan accounts cross Rs 1 lakh crore

The Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme launched on August 28, 2014 by NDA-1 government is geared to provide universal banking access to all the citizens of the country.

Data released on July 03, 2019 revealed the total deposits across the 36.06 lakh PMJDY accounts stood at a staggering Rs 1,00,495 crore.

What is PMJDY?

Beneficiaries under PMJDY are offered Basic Savings Bank Deposit (BSBD) accounts with an additional access to overdraft and remittance facilities, a RuPay debit card and pension for beneficiaries from low-income groups. About 60% of the accounts were opened in rural and semi-urban areas to provide accessible banking options to citizens from smaller hamlets. 

With this initiative, bank account penetration among the poorest households has grown from 44% in 2014 to 77% in 2017. Over 53% of the beneficiaries of these accounts are women, with a majority from rural areas.

Related: Stand Up India Budget 2019: What’s in it for entrepreneurs?

Benefits of PMJDY?

  • There is no minimum balance required to be maintained in the BSBD.
  • New accounts opened after August 28, 2018 can avail of Rs 2 lakh accident insurance cover, up from Rs 1 lakh.
  • The overdraft facility on the accounts has been double to Rs 10,000 on satisfactory account operation over a six-month period.
  • An estimated 4000 accident insurance claims were settled out of a total of 6000 filings.
  • Before the 2019 Lok Sabha elections, about 28.45 crore account holders had a Rupay debit card. 
  • The Jan Dhan bank account scheme and its banking benefits are credited to play a pivotal role in sustaining the popularity of Prime Minister Narendra Modi and the Bharatiya Janata Party during the 2019 Lok Sabha elections.

Related: How is the 2019 Budget going to help Self Help Groups?

Trends for PMJDY

As per the Finance Ministry, the number of zero balance accounts under PMJDY have steadily declined from 5.10 crore in March 2018 to 5.07 crore in March 2019, bringing the figure below 15% of all accounts. Channelling all government benefits to the beneficiaries through the Direct Benefit Transfer (DBT) has been attributed to increased account operations.

The average balance in the Jan Dhan accounts has more than doubled from Rs 1,065 in March 2015 to Rs 2,603 as of January 2019.

During budget 2019-20, Finance Ministry allocated Rs 1,03,927 crore to Home Affairs which could possibly be funded through the Jan Dhan deposits. Have a look at the government's social and health schemes - are you eligible?

Related Article

Personal Finance News

8 Simple ways to check gold price before you buy

8 Simple ways to check gold price before you buy

 

Most Shared

Poll

Do you have latest riders on your car insurance policy?

Choices