Next level of Jan-Dhan to target insurance, pension services

Pension Insurance under PMJDY
Pension Insurance under PMJDY

Setting the next target for PMJDY, Prime Minister Narendra Modi has proposed inclusion of credit, insurance and pension.

In an email to bankers, PM Modi appreciated their effort saying, “Well begun is half done. The Pradhan Mantri Jan-Dhan Yojana provides a platform for changing the economic condition of our people.” He complimented the bankers for the success of PMJDY.

A major policy initiative of PM Modi, Pradhan Mantri Jan-Dhan Yojana, is directed towards removing “financial untouchability” from India. Under PMJDY, each bank account comes with an accident insurance cover, a RuPay debit card and a life insurance policy of Rs 1 lakh. The provision of an overdraft facility of Rs 5,000 later on the account is also part of PMJDY.

“We need to build on this success and leverage these accounts to provide our citizens a wide range of credit, insurance and pension services. We also need to maintain high standards of customer service. This is the next phase of Pradhan Mantri Jan-Dhan Yojana,” the PM further added.

Modi further reiterated that the banks after achieving the target of opening the accounts should put more efforts into improving financial literacy and seeding of Aadhar numbers with bank accounts. PM said, “Bank Mitras need to be enabled to carry out RuPay card and Aadhaar enabled transactions in villages itself.”

Modi said that many development projects of the country are being in slow implementation due to lack of single bank account with the various project beneficiaries, however, with success of PMJDY, things will speed up.  PM further added, “Benefits have already started flowing to people through some of the “direct benefit transfer” schemes. This not only ensures that benefits reach people directly, but also utilizes your accounts well.”