After seven successful years of Pradhan Mantri Jan-Dhan Yojana (PMJDY), the financial inclusion program, the government plans to provide life insurance and accident coverage to more than 430 million account holders, the government said on Saturday. Ministry of Finance.
The government plans to provide coverage for PMJDY account holders under microinsurance programs – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), the ministry said in a statement. The Jan Dhan plan was announced by Prime Minister Narendra Modi in his Independence Day speech on August 15, 2014.
“Banks have already been informed of the same thing,” said the statement released on Saturday. According to the Department of Financial Services (DFS) website, PMJJBY offers life coverage of ??2 lakh for a premium of less than 1 Re per day. PMSBY covers accidental risks.
The scheme provides ??2 lakh for accidental death and total disability, and ??1 lakh for partial disability for a premium of ??12 per year.
The government is also working to promote digital payments among Jan Dhan account holders by creating an acceptance infrastructure across the country and improving their access to micro-credit and micro-investment such as flexi-recurring deposits. , the ministry said.
Finance Minister Nirmala Sitharaman said: “The journey of PMJDY-led interventions undertaken over a short period of seven years has indeed produced both transformational and directional change, thus making the emerging FI. [financial inclusion] ecosystem capable of providing financial services to the last person in society, the poorest of the poor.
“PMJDY’s underlying pillars, namely banking the unbanked, securing the unsecured and funding the unfunded, have enabled a multi-stakeholder collaborative approach to be taken while leveraging technology to also serve unserved and underserved areas, ”she said in the statement.
According to the Ministry of Finance, the number of Jan Dhan accounts increased to 43.04 crore (430.4 million) in August 2021 from 17.9 crore (179 million) in August 2015.
Among current account holders, 55.47% (238.7 million) are women and 66.69% (287 million) are located in rural and semi-urban areas.
Minister of State for Finance Bhagwat Karad said the YMYPY was one of the most ambitious initiatives for financial inclusion not only in India but around the world.
“Financial inclusion is one of the government’s top priorities because it is a catalyst for inclusive growth. It offers the poor a way to get their savings into the formal financial system, a way to give money back to their families in addition to getting them out of the clutches of usurious lenders, ”he said in the statement.
At the launch of the program on August 28, 2014, Prime Minister Modi described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle.
PMJDY has been the cornerstone of people-centered economic initiatives. “One in two accounts opened between March 2014 and March 2020 was a PMJDY account. Within 10 days of the nationwide lockdown, more than 20 million women’s PMJDY accounts were credited without charge, ”the statement said.
“In the present day of COVID-19, we have witnessed the remarkable speed and fluidity with which Direct Benefit Transfer (DBT) has empowered and provided financial security to vulnerable sections of society. An important aspect is that DBT through Prime Minister Jan Dhan’s accounts allowed each rupee to reach its intended beneficiary and prevent systemic leaks, ”he said.