According to an RTI response, just 329 claims out of 647 made in the last two fiscal years were settled under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
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What exactly is the PM Jan Dhan Yojana (PMJDY)?
- The PMJDY is an Indian government financial inclusion programme that was introduced in 2014.
- It is the National Mission for Financial Inclusion’s goal to provide inexpensive access to financial services such as basic savings and deposit accounts, remittance, credit, insurance, and pensions.
- Persons who do not have any other accounts can open a basic savings bank deposit (BSBD) account in any bank branch or Business Correspondent (Bank Mitra) outlet under the plan.
Benefits under PMJDY
- In PMJDY accounts, there is no necessity to keep a minimum balance.
- In PMJDY accounts, deposits receive interest.
- The account holder receives a Rupay Debit card.
- Accident Insurance Coverage of Rs.1 lakh (increased to Rs.2 lakh for new PMJDY accounts opened after 28.8.2018) is available with the PMJDY account holders’ RuPay card.
- To qualifying account holders, an overdraft (OD) option of up to Rs. 10,000 is provided.
Why is this in the news?
- In the fiscal year 2021-22, 341 claims for accident insurance coverage under the PMJDY plan were received.
- 182 of these claims were settled, while 48 were denied.
- There was no word on the status of the remaining 111 claims.
Is PMJDY a success story?
- Account dormancy: The PMJDY initiative increased the number of bank accounts in rural areas, but this did not necessarily result in a rise in transactions due to many account holders’ minimal activity history.
- Low or no transactions: The account holder’s insurance coverage is connected to their transaction history, and many accounts remain blocked owing to a lack of transactions, taking weeks or months to reactivate.
- False overdraft promise: The promised overdraft facility of Rs 5000 for new account holders has not been granted, raising doubts about the scheme’s viability.
- Payments stymied: In remote areas, a lack of sufficient connectivity, energy, internet, and ATM facilities has hampered the activation of RuPay cards and PIN numbers, which should have been considered before launching such a large-scale programme.
Source: https://www.thehindu.com/news/national/only-half-of-pradhan-mantri-jan-dhan-yojana-insurance-claims-settled-in-two-years/article66777561.ece#:~:text=In%20the%20last%20two%20financial,647%20claims%20that%20were%20filed.