Jan Dhan Yojana Day-1 Update

Finally Jan Dhan Yojana was launched on 28 August 2o14. And here are the highlights from day-1 and world records which were made:

• Within a day over 1.5 crore accounts were opened across India which in turn boost the economy and prevent poor people from the claws of money lenders
• This number of account opened in a single day itself is a world record
• 1.5 lakh insurance policies were issued which again is a world record
• First time in the world history such a scheme was launched with participations by Chief ministers, Union minister, Information minister, Law minister, home ministry and others
• Programmes were launched from over 77,000 camps for educating people about this scheme
• Before the launch, 7.5 lakh E-mails were sent to the public sector banks informing them about the financial inclusion scheme
• On day-1, Rs. 30, 000 life cover as an incentive was declared for those opening the account before 26 January 2015. This cover would be provided by LIC.
• On all Saturdays, banks will run camps from 8am-8pm so that more and more accounts can be opened and people can be educated about this scheme

Read more on Jan Dhan Yojana Benefits and also check out the details applicant needs to fill in PMJDY account opening form

Challenges Ahead:

Although the Yojana is a success, there are few issues which needs to be addressed:

• How to avoid account going dormant
• Whether existing bank account holders are eligible to open account? And whether insurance cover would be given to them or not?
• Any savings interest applicable or not
• Who will bear the cost of overdraft facility
• Most of the people from rural areas are illiterate and cannot sign. So can such people provide thumb print?
• What is the insurance premium

Read an interesting discussion between a banker and poor family and how the banker succeeds in convincing them to open the bank account.