TeluguabroadPradhan Mantri Jan Dhan Yojana launched
Pradhan Mantri Jan Dhan Yojana launched, 1.5 crore bank accounts opened in a day. The government rolled out its ambitious financial inclusion programme, the Pradhan Mantri Jan Dhan Yojana (PMJDY), and said about 1.5 crore accounts were opened on Thursday through thousands of camps, exceeding the firstday target of 1 crore accounts.
The programme is Prime Minister Narendra Modi’s first super hit social upliftment scheme and is aimed at improving the lives of millions of India’s poor by bringing them into the financial mainstream and freeing them from the clutches of moneylenders, while giving them a modicum(something desirable or valuable) of insurance cover.
Seeing the performance on Day 1, Modi shortened the time for achieving the 7.5 crore new accounts to five months from six months, urging the finance ministry to complete the task by January 26, 2015.
The prime minister topped up each account with life insurance cover of Rs 30,000, adding to the Rs 1 lakh accidental insurance benefit already available under the account that will come bundled with a Ru-Pay-enabled debit card.
After six months of satisfactory operations, the account would be eligible for Rs 5,000 overdraft facility, designed to take the poor out of the clutches of moneylenders. Subsequently, these accounts will be also used for providing micro pensions.
“I believe when a person opens a bank account, he or she takes the first step to get connected with the economic system. Today, the 1.5 crore families which got connected with the economic system will give a boost to the economy,” the prime minister said.
Modi noted that it was easy for the rich to get loans at low interest rates but that the poor are forced to borrow from moneylenders at five times that figure.
“A breakthrough was required to overcome the vicious cycle of poverty and debt, and that breakthrough has been achieved today,” he said, adding that financial inclusion is the responsibility of the government.
Pradhan Mantri Jan Dhan Yojana was simultaneously launched at multiple centres by 20 chief ministers and several union ministers across the country. In all, 600 programmes and 77,852 camps were organised on the first day for the opening of bank accounts.
“We are happy to break various records,” said Modi, emphasizing the historic nature of the achievement. Never before had 1.5 crore accounts been opened in a day along with insurance cover, he said. “This is a happy experience for the government,” he said, adding that the programme’s success was an inspiration for scaling new heights.
The prime minister recalled that when banks were nationalized in 1969, it was done with the objective of bringing people into the economic mainstream. “But that objective has not been achieved till date. After 68 years of Independence, not even 68% of India’s population has access to banking,” he said.
The government would eventually want to provide direct benefits transfer through these accounts, a measure it feels can help curb corruption by plugging leakages.
The finance minister said the National Unified USSD Platform (NUUP) jointly set up by banks and mobile companies will make mobile banking available to account-holders. The National Payments Corporation of India has provided a platform for basic banking transactions that can be made with a phone call. Account holders will be able to check their balance and transfer funds using this method.
Bank of India Chairman Vijayalakshmi Iyer said the overdraft facility should not be seen as a dole but will be offered based on economic activity. “After six months of satisfactory operations, Rs 2,000 will be provided as an overdraft facility, which will then be extended,” she said.
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