GS Paper- 2 (Polity)

The government's flagship financial inclusion program Pradhan Mantri Jan Dhan Yojana has completed its eighth year and a lot of intended goals were achieved in this period. The program was announced by Prime Minister Modi in his first Independence Day address in 2014. While launching the program in the later part of August 2014, the PM had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle.


  1. The objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" was to ensure access to various financial services like availability of basic savings bank accounts, access to need-based credit, remittances facility, insurance and pension to the unbanked weaker sections and low-income groups through effective usage of technology.
  2. The initiative was important as it provided an avenue for the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders.
  3. In addition, the beneficiaries get a RuPay Debit card with having inbuilt accident insurance covers of 1 lakh.
  4. The plan also envisages channeling all Government benefits (from Centre / State / Local Body) to the beneficiary's accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union Government.
  5. The underlying pillars of PMJDY, namely, Banking the Unbanked, Securing the Unsecured and Funding the Unfunded has made it possible to adopt multi-stakeholders collaborative approach while leveraging technology for serving the unserved and underserved areas as well, Union Finance Minister Nirmala Sitharaman said on the occasion 8th anniversary of the flagship initiative.
  6. Financial Inclusion needs policy-led intervention based on an architecture linked to suitable financial products, information and communication technologies and data infrastructure.