Jan Dhan Yojana, officially known as the Pradhan Mantri Jan Dhan Yojana (PMJDY), is a financial inclusion program launched by the Government of India in August 2014. The aim of this scheme is to provide access to basic banking services and financial products to all households in India, particularly those belonging to the economically disadvantaged sections of society.
The key objectives of Jan Dhan Yojana are:
1. Universal access to banking facilities: The scheme aims to provide a basic banking account to every household in India, ensuring financial inclusion for all.
2. Financial literacy and awareness: Jan Dhan Yojana also focuses on promoting financial literacy and awareness among the economically weaker sections of society to encourage them to participate in the formal banking system.
3. Access to credit and insurance: The scheme facilitates access to credit and insurance services for account holders, thereby enabling them to save, invest, and protect themselves against financial risks.
4. Direct Benefit Transfer (DBT): Jan Dhan Yojana plays a crucial role in the implementation of various government welfare schemes by providing a platform for direct benefit transfer to the beneficiaries, reducing leakages and ensuring transparency.
Under this scheme, individuals can open a zero-balance savings account with various banking institutions, including public and private sector banks, regional rural banks, and cooperative banks. Account holders receive a RuPay debit card, enabling them to make transactions at ATMs, online, and at point-of-sale (POS) terminals.
Jan Dhan Yojana has been successful in expanding financial inclusion in India. It has helped millions of previously unbanked individuals gain access to formal banking services, encouraging savings, reducing dependence on informal credit sources, and facilitating the direct transfer of government benefits.
