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PM Jan Dhan Yojana’s Milestones - Coggle Diagram
PM Jan Dhan Yojana’s Milestones
Central Idea
Shows commitment to financial inclusion, creating avenues for underprivileged segments
PM Jan Dhan Yojana (PMJDY) celebrates 9 years, boasting 50 crore bank accounts and ₹2 lakh crore in deposits
What is PMJDY?
Basic savings accounts can be opened by those without existing accounts
Launched in 2014
A financial inclusion program, offering basic banking services, remittances, credit, insurance, and pensions
PMJDY
Achievements
Reduced Dormancy: Zero-balance accounts dropped from 58% (March 2015) to 8%.
Access to Credit: Overdraft facilities provided financial stability.
Digital transactions surged from 978 crore (2016-17) to 7,195 crore (2021-22).
Increased Financial Inclusion: 42 crore bank accounts opened, expanding banking access.
Challenges
Lack of Financial Literacy: Beneficiaries need more financial knowledge.
Low or No Transactions: Accounts freeze due to inactivity.
Misuse and Fraud: Instances of misuse for money laundering and fraud.
Unfulfilled Overdraft Promises: Promised overdraft facility of Rs 5000 not consistently provided.
Many account holders lack access to loans, insurance, and investments.
Way Forward
Multi-Level Coordination: Collaborate with line ministries and workers.
Persuasion over Compulsion: Focus on financial literacy and awareness programs.
Leveraging Databases: Use databases like E-Shram for beneficiary identification.
Voluntary Participation: Encourage micro-insurance schemes.
Social benefits
Direct Benefit Transfer (DBT): Efficient transfer of subsidies, pensions, and benefits, reducing leakage.
Financial Literacy: Conducted rural financial literacy programs.
Empowerment of Women: Promoted women-centric bank accounts.