Jan Dhan Yojana
Why this scheme?
India has very low banking penetration. Crores of our citizens do not have a bank account. There are plenty of reasons for this.
The banks do not find it economically feasible to operate full fledged in rural area. (Money is needed to bank!)
The rural population in many places sees it out of their league( accessibility, awareness)
The informal systems have deep route and people rely on them.( Leads to loads of black money in predatory lenders)
What is scheme about?
Universal access to banking facilities (key word)
The citizens can open zero account bank account in any bank. The private and public players are roped in for this. It provides for overdraft facility as well as both life and accident insurance with every account.
The scheme has very easy Know the customer rules. Aadhaar card, NREGA cards, voters’ ID card etc are accepted as documentary proofs.
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
Financial Literacy Programme
In second phase, the micro insurance, credit guarantee etc will be included.
Bottle necks/ views
Like every scheme there will be bottlenecks and concerns about this scheme also. The main thoughts from various quarters are
1. Will the accounts created generate enough ‘dhan’.
2. Problem of fake accounts.
3. Will full coverage be possible as many persons may not have an id card
4. The insurance part lacks clarity
Your thoughts on aspects of the scheme and its bottle necks (as well as solutions) needed for exam.
It is a payment gateway platform created by National Payment Corporation of India. India is the fourth country in the world after the US, Japan and China to have its own national payment gateway, in RuPay.