Pradhan Mantri Jan Dhan Yojna (PMJDY)

Pradhan Mantri Jan Dhan Yojna is an ambitious scheme for comprehensive financial inclusion 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, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened bank under this scheme, which also has an option for opening new bank accounts with zero balance.

The programme is for social upliftment scheme and is aimed at able to improving the lives of millions of India's poor by bringing them into the financial mainstream and freeing them from the clutches of usurious moneylenders, while giving them a modicum of insurance cover.

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Buoyed by the performance on Day 1, Modi shortened the time for achieving the 7.5 crore new accounts to five months from six, urging the finance ministry to complete the task by January 26.

In order to eradicate poverty we have to get rid of financial untouchability, the prime minister said, adding that inclusion will also act as an important tool in the fight against corruption. He also said the programme would break the vicious cycle of poverty and debt and boosts the economy, which slowed to decadal lows in the past two years.

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Here is looking at five important features of the PM Jan Dhan Yojna :

1. Under the scheme, account holders will be provided zero-balance bank account with Rupay debit card, in addition to accidental insurance cover of Rs. 1 lakh.

2. Those who open accounts by January 26, 2015 over and above the 1 lakh accident, they will be given life insurance cover of 30,000

3. Six months of opening of the bank account, holders can avail Rs.5, 000 loans from the bank.

4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart 31 ion phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.

Narendra Modi

As of September 8, 2014, 3.02 crore accounts have been opened, of which 1.89 crore are in rural areas and 1.13 crore are in urban areas. Banks have collected deposits of 1,496.51 crore under the scheme so far, which works out to Rs. 495 per account.

PMJDY was simultaneously launched at multiple centers by 20 chief ministers and several union ministers Home Minister Rajnath Singh in Lucknow, External Affairs Minister Sushma Swaraj in Bhopal, and Human Resource Development Minister Smriti Irani in Surat, Law Minister Ravi shankar Prasad in Chennai and Information & Broadcasting Minister Prakash Javadekar in Pune.

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The finance minister said the National Unified USSD Platform n (NUUP) jointly set up by banks and mobile companies will make mobile banking available to account-holders. The National Payments Corporation of India has provided a platform for basic banking transactions that can be made with a phone call. Account holders will be able to check their balance and transfer funds using this method.