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The much touted "Pradhan Mantri Jan Dhan Yojana" (PMHDY) will not only be about opening basic bank accounts to unbanked families but also about Government expanding the current direct benefit transfer (DBT) programme so as to transfer the subsidies of various welfare schemes directly to the PMJDY beneficiaries’ bank accounts.
It is expected that flow of such subsidy payments to the basic bank accounts’ of the unbanked families will in due course encourage bankers’ to focus energies on these accounts and even provide overdraft and other facilities.
The new financial inclusion mission also envisages expansion of Direct Benefit Transfer under various Government schemes through bank accounts of the beneficiaries of PMJDY, sources privy to the contours of the PMJDY said.
As on date, not all subsidy payments of the central government are credited directly to the beneficiary’s bank account.
Many Ministries make their subsidy payments through cheques or sometimes even by cash.
PMJDY is a national mission on financial inclusion to be launched by the Prime Minister Narendra Modi on August 28.
This scheme seeks to provide two bank accounts to each of the 7.5 crore identified unbanked families across the country
Besides a basic banking account, a Rupay debit card having inbuilt accident insurance cover of ₹ 1 lakh will be provided.
The DBT programme was rolled out by the previous United Progressive Alliance (UPA) Government on January 1, 2013 for transferring subsidies of various welfare schemes through the Aadhar-linked platform.
From June 1 last year, the erstwhile UPA Government had initiated transfer of LPG subsidy through direct benefit transfer programme.
Under this move, consumers were paid cash subsidy to enable them buy LPG cylinders at market prices. But this was put on hold in March this year following complaints that not all consumers had Aadhar or bank account to get this subsidy.
Meanwhile, the proposed PMJDY would also cover the issuance of Kisan Credit Card as Rupay Kisan card.
TWO PHASES
In the PMJDY’s first phase—August 15, 2014 to August 14, 2015, all households will be covered with at least one basic bank account.
Routing of subsidies to such accounts under DBT will also be done in the first phase.
The second phase—August 15,2015 to August 14, 2016 - would involve providing of micro-insurance and unorganised pension schemes like Swavalamban through the business correspondents.
PMJDY-IT’S DIFFERENT
The major shift in the PMJDY as compared to the previous financial inclusion efforts of the erstwhile UPA Government is that households are being targeted instead of villages as targeted earlier.
Moreover, both rural and urban areas are being covered this time as against only rural areas targeted earlier.
The present plan will pursue digital financial inclusion with special emphasis on monitoring by a mission headed by Finance Minister.
Meanwhile, the Finance Ministry has urged the State Chief Ministers’ of States to launch the Yojana (PMJDY) at the State level on August 28.
Prime Minister Narendra Modi will launch the yojana at a national level function in New Delhi on August 28.
srivats.kr@thehindu.co.in
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