PRADHAN MANTRI JAN DHAN YOJANA(PMJDY): ‘SAB KA SATH SAB KA VIKAS’

OBJECTIVE:	1.        Objective of covering all households in the country with banking facilities and having a bank account for each household.  2.       Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. 3.       With a bank account, every household gains access to banking and credit facilities. 4.       THIS will reduce informal credit facilities like moneylenders in credit giving.
CURRENT STATUS OF FINANCIAL INCLUSION IN THE COUNTRY :	·         Initiatives were taken up by RBI / GoI in order to ensure financial inclusion. 1.       Nationalization of Banks 2.        Expansion of Banks branch network 3.        Establishment & expansion of Cooperative and RRBs. 4.       Introduction of PS lending 5.       Lead Bank Scheme 6.       Formation of SHGs and State specific approach for Govt sponsored schemes to be evolved by SLBC . ·         During 2005-2006, RBI advised Banks to align their  polices with the objective of financial Inclusion.  ·         To use the services of NGOs/SHGs, MFIs and other Civil Society Organizations as intermediaries in providing financial and banking services through use of “Business Facilitator and Business Correspondent Model”. ·         As per Census, 2011, out of 24.67 crore households in the country. ·          14.48 crore (58.7%) households had access to banking services. ·         Of the 16.78 crore rural households, 9.14 crore (54.46%) were availing banking services. Of the 7.89 crore urban households, 5.34 crore (67.68%) households were availing banking services.
PROBLEMS WITH FINANCIAL INCLUSION PROBLEMS	·         Very less number of ATM’s  per population. ·         Moreover, there are more than 1.4 lakh Business Correspondents (BCs) of Public Sector Banks and Regional Rural Banks in the rural areas. ·          BCs are representatives of bank to provide basic banking services i.e. opening of basic Bank accounts, Cash deposits , Cash withdrawals, transfer of funds, balance enquiries, mini statements etc. However actual field level experience suggests that many of these BCs are not actually functional.
PMJDY	·         Consists of 6 pillars and executed in 2 phases ·         Phase I-(15th August, 2014-14th August,2015) (1)Universal access to banking facilities (2) Financial Literacy Programme and (3) Providing Basic Banking Accounts with overdraft facility of Rs.5000 after six months and RuPay Debit card with inbuilt accident insurance cover of Rs 1 lakh and RuPay Kisan card ·         Phase II( 15th August 2015 upto15th August,2018)  (1) Creation of Credit  Guarantee Fund   for coverage of defaults in overdraft  A/Cs . (2)  Micro Insurance (3)  Unorganized sector Pension schemes like  Swavlamban.
WAY AHEAD	·         Pushing the Direct Benefits Transfer (DBT) scheme. ·         Improving constraints of telecom connectivity. ·         Increasing number of ATM. ·         Increasing role of RBI, NABARD, NPCI and others have been indicated,Gram Dak Sewaks. ·         The ‘account opening kit’ and the mobile banking facility on the basic mobile phone (USSD)