Govt to launch Jan Dhan scheme to promote financial inclusion: PM Modi

People have mobile phones but not bank accounts, Modi said.

By: Press Trust of India | New Delhi | Updated: August 15, 2014 10:29 am
Modi_Iday_m The scheme, to be pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore identified households by August 2018.

Prime Minister Narendra Modi on Friday launched ‘Pradhan Mantri Jan Dhan Yojana’ to help the poor open bank accounts which will come with the facility of a debit card and an insurance cover of Rs 1 lakh.

“We want to integrate the poorest of the poor with bank accounts with Pradhan Mantri Jan Dhan Yojana,” he said in his maiden Independence Day address to the nation.

Observing that people have mobile phones but not bank accounts, Modi said, the scheme will help in bringing the benefits of formal banking system to them.

“Today there are crores of families which have mobile phones but no bank accounts. We have to change this. The economic development must benefit poor and it should start from here,” he said.

Under the Jan Dhan Yojana, he said, “the person who will open bank account will get a debit card and the family will get Rs 1 lakh insurance cover. This will help the family to tide over the unforeseen eventuality.”

The Union Cabinet has already cleared the two-phase financial inclusion scheme under which bank accounts will be opened for 15 crore poor persons with an overdraft facility of Rs 5,000 and accident insurance of Rs 1 lakh.

The scheme, to be pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore identified households by August 2018.

The main features of the scheme include Rs 5,000 overdraft facility for Aadhar-linked accounts, Ru Pay Debit Card with inbuilt Rs 1 lakh accident insurance cover and minimum monthly renumeration of Rs 5,000 to business correspondents who will provide the last link between the account holders and the bank.

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      shipra das
      Apr 13, 2015 at 8:47 am
      What is tha duration of insurrence.and what is the rules and regulation of clime the insurence
      1. J
        James Whitaker
        Aug 16, 2014 at 11:08 pm
        Another short sighted measure by a narcissist PM. Giving accident insurance of Rs 1 lakh does not in any way ensure adequacy or quality of treatment. It is just a bandaid treatment for a more complex problem. Government should have taken measures to improve healthcare in public hospitals and lift their pathetic standard to that of developed economies. Get more of such half literate Prime Ministers and you will get more of such poorly thought and short sighted measures on which tax payer's money will be wasted by " pradhan sevaks".
        1. R
          Rajesh Ramnani
          Sep 14, 2014 at 8:41 am
          which bank should we open the account .His this in Pune (Mharshtra)
          1. Subramanian Venkatraman
            Aug 17, 2014 at 5:34 am
            In our rural villages where education is the last priority for families, how many people even know to sign or read, leave alone writing! They will be exploited by unscrupulous people and avail the overdraft money, never thinking of repaying! Where will the ATMs be for using the debit cards? I only hope this scheme is introduced only within a radius of 5 miles of any branch of a bank to start with and expanded further as and when more branches are set up. All those being issued with a card should be asked to attend a meeting to collect the card where they should be explained in detail in local language full details of the card and how to use it, besides being told that the over draft is for repaying.It might be worthwhile if a couple of village leaders like panchayat president, school headmaster are authorized to countersign any request for overdraft, instead of allowing people just to use the debit cards directly. Very strict punishments should be prescribed for any mischief.
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