New Delhi: Pradhan Mantri Jan Dhan Yojana is one of the biggest financial inclusion initiatives in the world, announced by Prime Minister Narendra Modi in his Independence Day address in 2014. The policy provides universal banking services for every unbanked household, based on the guiding principles of banking the unbanked, securing the unsecured, funding the unfunded and serving un-served and underserved areas.
The scheme was rolled out to offer on the following 6 pillars:
– Universal access to banking services – Branch and Banking Correspondent (BC)
– Financial Literacy Program – Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
– Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
– Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on account opened between 15 Aug 2014 and 31 January 2015
– Pension scheme for Unorganized sector
– Basic Savings Bank Deposit (BSBD) accounts with overdraft facility of Rs 10,000 to every household.
Rs 10,000 loan under PM Jan Dhan Yojana Loan
The subscribers of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are eligible for an overdraft (OD) or credit facility of up to Rs 10,000 in this zero-balance account. While the limit was Rs 5,000 earlier, it was later doubled to Rs 10,000.
The general purpose of the facility is to provide hassle free credit to low income group/underprivileged customers to meet their exigencies without insistence on security, purpose or end use of the credit.
Who can get the PM Jan Dhan loan?
The following individuals can avail the Rs 10,000 overdraft facility under the government scheme:
a) BSBD accounts, which are operated satisfactorily for at least six months,
b) OD to be granted to the earning member of family, preferably women of the house,
c) There should be regular credits under DBT/ DBTL scheme/other verifiable sources,
d) Account should be seeded with Aadhaar for avoiding duplicate benefit,
e) BSBD account holder should not be maintaining any other SB account with any Bank/branch to ensure compliance with RBI directives, and
f) Age of applicant should be between 18 years to 65 years
The period of sanction of the loan is 36 months, subject to annual review of account.
PM Jan Dhan account holders can get overdraft up to Rs 2,000 without conditions.
Last year, the scheme completed eight years of successful implementation and over 46.25 crore beneficiaries have banked under PMJDY to date, amounting to Rs. 1,73,954 crore.
Accounts under the PM Jan Dhan Yojana grew 3-fold from 14.72 crore in March 2015 to 46.25 crore as on August 10, 2022. According to the Finance Ministry, 56 per cent Jan Dhan account holders are women and 67 per cent Jan Dhan accounts are in rural and semi-urban areas.
