CONTENTS
- Pradhan Mantri Jan-Dhan Yojana
- PRAGATI
Pradhan Mantri Jan-Dhan Yojana
Context:
On August 28, 2024, the Pradhan Mantri Jan Dhan Yojana (PMJDY) accomplished a decade, marking a significant milestone in financial inclusion.
Relevance:
GS II: Government Policies and Interventions
About Pradhan Mantri Jan-Dhan Yojana:
Pradhan Mantri Jan-Dhan Yojana – PMJDY was announced by Prime Minister in 2014, and has been a key initiative towards the commitment to provide financial inclusiveness and support to the marginalized and hitherto socio-economically neglected classes.
Background
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Objectives
- Ensure access of financial products & services at an affordable cost
- Use of technology to lower cost & widen reach
Basic tenets of the scheme
- Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, 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
Initial Features: 6 Pillars based on which the scheme was launched
- Universal access to banking services – Branch and BC
- Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every household
- Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
- Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
- 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
- Pension scheme for Unorganized sector
Important approach adopted in PMJDY based on past experience:
- Accounts opened are online accounts in core banking system of banks, in place of earlier method of offline accounts opening with technology lock-in with the vendor
- Inter-operability through RuPay debit card or Aadhaar enabled Payment System (AePS)
- Fixed-point Business Correspondents
- Simplified KYC / e-KYC in place of cumbersome KYC formalities
Extension of PMJDY with New features
The Government decided to extend the comprehensive PMJDY program with some modifications
- Focus shift from ‘Every Household’ to Every Unbanked Adult’
- RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
- Enhancement in overdraft facilities –
- 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
Jan Dhan Darshak App
- A mobile application, was launched to provide a citizen centric platform for locating banking touch points such as bank branches, ATMs, Bank Mitras, Post Offices, etc. in the country.
- The facilities under Jan Dhan Darshak App could be availed as per the need and convenience of common people.
The road ahead
- Endeavour to ensure coverage of PMJDY account holders under micro insurance schemes. Eligible PMJDY accountholders will be sought to be covered under PMJJBY and PMSBY. Banks have already been communicated about the same.
- Promotion of digital payments including RuPay debit card usage amongst PMJDY accountholders through creation of acceptance infrastructure across India
- Improving access of PMJDY account holders to Micro-credit and micro investment such as flexi-recurring deposit etc.
PRAGATI
Context:
Prime Minister chaired the meeting of the 44th edition of PRAGATI, the ICT-based multi-modal platform for Pro-Active Governance and Timely Implementation, involving Centre and State governments.
Relevance:
GS II: Polity and Governance
About PRAGATI
- PRAGATI (Pro-Active Governance And Timely Implementation), as the name suggests, is aimed at starting a culture of Pro-Active Governance and Timely Implementation.
- It is also a robust system for bringing e-transparency and e-accountability with real-time presence and exchange among the key stakeholders.
- The platform was launched in 2015 is a multi-purpose and multi-modal platform that is aimed at addressing common man’s grievances, and simultaneously monitoring and reviewing important programmes and projects of the Government of India as well as projects flagged by State Governments.
- It is a three-tier system (PMO, Union Government Secretaries, and Chief Secretaries of the States)
- The PRAGATI platform uniquely bundles three latest technologies, digital data management, video-conferencing and geo-spatial technology. It also offers a unique combination in the direction of cooperative federalism since it brings on one stage the Secretaries of Government of India and the Chief Secretaries of the States.
- The Prime Minister will hold a monthly programme where he will interact with the Government of India Secretaries, and Chief Secretaries through Video-conferencing enabled by data and geo-informatics visuals.
