Pradhan Mantri Jan Dhan Yojana


Five important features of the PM Jan Dhan Yojna

1. Under the scheme, account holders will be provided zero-balance bank account with Rupay/ debit card, in addition to accidental insurance cover of Rs 1 lakh.

2. Those who open accounts by January 26, 2015 over and above the Rs1 lakh accident, they will be given life insurance cover of Rs 30,000.

3. Six months of opening of the bank account, holders can avail Rs 5,000 loan from the bank.

4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.

Prime Minister Narendra Modi opened a record 1.5 crore bank accounts across the country oto mark the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) aimed at financial inclusion of all Indians.

The scheme aims to ensure that every household has at least two bank accounts.

Each of the 1.5 crore bank accounts opened on comes with a RuPay debit card, Rs.1 lakh accident insurance cover and an additional Rs. 30,000 life insurance cover. These benefits will apply to all accounts opened before January 26, 2015.

The scheme’s launch marked a breakthrough in breaking the vicious cycle of poverty and debt. There were similarities between the poor gaining access to mobile phones and getting access to debit cards as both have the effect of instilling confidence and their pride.

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Benefits of the scheme

RuPay cardholders will have dual insurance covers, with the government roping in the Life Insurance Corporation of India a day before unveiling its financial inclusion programmePradhan Mantri Jan Dhan Yojana.

The massive financial inclusion project to be launched across India will give unbanked customers RuPay debit card, launched by the National Payments Corporation of India (NPCI), along with free insurance cover and new bank account.

NPCI had entered into a three-year agreement with private general insurance HDFC Ergo and a similar agreement will be signed with LIC.

LIC will provide unconditional cover to RuPay cardholders. HDFC Ergo will provide cover to the cardholders in case of death or permanent disability. As per the agreement between HDFC Ergo and NPCI, a claim will be disposed only if the card is active. A card will be considered active if the cardholder has swiped it within 45 days of making a claim. The NPCI is in talks with HDFC Ergo to improvise the scheme so that the claim can be made if the card was swiped within the preceding 90 days.

The NPCI has issued 23 million cards, and it is estimated that 150 million new bank accounts will be opened and as many new cards will be issued in the unbanked areas by March 2016, with the NPCI paying the premium instead of the cardholder.

The Jan Dhan Yojana aims to cover 60% of the country’s population that does not have access to formal banking services. Under the scheme, every household will be provided one bank account within a year.

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