Pradhan Mantri Jan Dhan yojana

Question 1

Announced?

Answer 1

15th August 2014

Question 2

Objectives

Answer 2

• ensure access of financial products & services at an affordable cost (Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension)
• Use of technology to lower cost & widen reach.

Question 3

Basic tenets

Answer 3

-Banking the unbanked
Opening of basic savings bank deposit (BSBD) account -> relaxed KYC, e-KYC, account opening in zero balance & zero charges.

-Securing the unsecured
Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.

-Funding the unfunded
Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

Question 4

Pillars on which scheme is based

Answer 4

1. Universal access to banking services
2. Basic savings bank accounts with overdraft facility (OD) of Rs. 10,000/- to every household.
3. Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking.
4. Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults.
5. Insurance – Accident cover up to Rs. 1,00,000 and
   life cover of Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
6. Pension scheme for Unorganized sector.

Question 5

New features

Answer 5

• Focus shift from Every Household to Every Unbanked Adult.
• insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs
• OverDraft(OD) limit doubled from Rs 5,000 to Rs 10,000; OD upto Rs 2,000 (without conditions). Increase in upper age limit for OD from 60 to 65 years

Question 6

What is overdraft?

Answer 6

jevha account madhe aslelya paishanpeksha jaast paise kadhta yetat tyala ovverdraft mhantat.