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

“We want to integrate the poorest of the poor with bank accounts with the 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 the formal banking system to them.

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

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

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 mission mode, seeks to provide two accounts to 7.5 crore identified households by August 2018.

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

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