SHYAMSUNDER SHARMA

2020235
Div- “D”

PRADHANMANTRI JANDHAN YOJANA

Introduction
Pradhan Mantri Jan Dhan Yojana (PMJDY, transl. Prime Minister's People's Wealth
Scheme) is a financial inclusion program of the Government of India open to Indian citizens
(minors of age 10 and older can also open an account with a guardian to manage it), that
aims to expand affordable access to financial services such as bank accounts, remittances,
credit, insurance and pensions. This financial inclusion campaign was launched by the Prime
Minister of India Narendra Modi on 28 August 2014. He had announced this scheme on his
first Independence Day speech on 15 August 2014.
Run by Department of Financial Services, Ministry of Finance, under this scheme 15 million
bank accounts were opened on inauguration day. The Guinness Book of World Records
recognized this achievement, stating: "The most bank accounts opened in one week as a
part of the financial inclusion campaign is 18,096,130 and was achieved by the Government
of India from August 23 to 29, 2014". By 27 June 2018, over 318 million bank accounts were
opened and over ₹792 billion (US$12 billion) were deposited under the scheme.

Benefits
Pradhan Mantri Jan Dhan Yojana (PMJDY) was introduced with a target of opening bank
accounts for around 7.5 crores uncovered households in India by 26th of January, 2015.
This scheme was successful in opening around 12.54 crore accounts by 31st January 2015
with deposits exceeding Rs. 10,000 crores. PMJDY scheme is also certified by the Guinness
World Records for its achievements which states that most bank accounts opened in one
week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the
Department of Financial Services, Government of India.

• The scheme covers both the urban as well as rural areas and provides an indigenous Debit
Card (RuPay card) to each of its account holders.

• No minimum balance is required for opening an account under this scheme. The
beneficiary can open his/her account in any bank branch or Business Correspondent outlet
at zero balance.

• It ensures to provide on Core Banking System (CBS) along with mobile banking using
USSD facilities. A facility of call center and a toll-free number is available nationwide.

• Pradhan Mantri Jan Dhan Yojana provides each beneficiary with basic banking accounts
with a debit card with inbuilt accident insurance.

• Rs. 5,000 overdraft facilities for Aadhar-linked accounts as well as a RuPay debit card with
inbuilt Rs. 1 lakh accident insurance cover is one of the main features provided by this
scheme.
PRADHANMANTRI BIMA YOJANA
Introduction

Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or

NRI) between 18 and 70 years of age with bank accounts. It has an annual premium
of ₹12 exclusive of taxes. The GST is exempted on Pradhan Mantri Suraksha Bima
Yojana. The amount is automatically debited from the account. This insurance
scheme can have one year cover from 1 June to 31 May and would be offered
through banks and administered through public sector general insurance
companies.[3]
In case of unexpected death or full disability, the payment to the nominee will be ₹2
lakh (US$2,800) and in case of partial Permanent disability ₹1 lakh (US$1,400). Full
disability has been defined as loss of use in both eyes, hands or feet. Partial
Permanent disability has been defined as loss of use in one eye, hand or
foot. Further, death due to suicide, alcohol, drug abuse, etc. are not covered.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri
Jan Dhan Yojana scheme. Most of this account had zero balance initially. The
government aims to reduce the number of such zero balance accounts by using this
and related schemes.[6] Now all Bank account holders can avail this facility through
their net-banking service facility at any time of the year.

Benefits

● In case of the death of the insured person, the next eligible beneficiary is provided
with a death benefit including a death coverage of Rs. 2,00,000.

● Being a pure term insurance scheme, the Pradhan Mantri Jeevan Jyoti Yojana
does not offer any maturity.

● The scheme also provides risk coverage for 1 year which can be renewed yearly.
The insurance holders can also opt for a long duration through the option of auto-
debit which is linked to their account.

● The scheme also provides tax deduction under section 80C through its monthly
premium payment.

● The life cover of Rs. 2 lakhs will be provided for one year period stretching from 1st
June to 31st May and will be renewable.

● The premium for this scheme is Rs. 330 per annum which is to be auto-debited in
one instalment before 31st May of each annual coverage period under the scheme.