Telangana State has achieved a significant milestone in financial inclusion by attaining 100% coverage of the Pradhan Mantri Jan Dhan Yojana (PMJDY). Since the launch of this national mission, the state has made remarkable progress in extending banking services to all sections of the population. This article explores the achievements of PMJDY in Telangana, highlighting its objectives and the steps taken to promote digital banking and financial empowerment.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Empowering Every Unbanked Adult The PMJDY is a National Mission for Financial Inclusion that aims to provide affordable access to financial services such as banking, savings and deposit accounts, remittance, credit, insurance, and pension. It serves as the foundation stone for people-centric economic initiatives, including Direct Benefit Transfer (DBT), COVID-19 financial assistance, PM-KISAN, and increased wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA). The primary objective of PMJDY is to ensure that every adult in India has a bank account, facilitating their participation in the formal financial system.
Achievements of PMJDY in Telangana: Expanding Banking Services to All
Digital Banking Approach
- All accounts opened under PMJDY in Telangana are online accounts integrated into the core banking system of banks, promoting efficient and secure transactions.
- The focus has shifted from targeting every household to ensuring that every unbanked adult in the state has access to financial services.
- Fixed-point Business Correspondents have been established to bring banking services to the doorstep of rural communities.
Simplified KYC and e-KYC
- Cumbersome KYC (Know Your Customer) formalities have been replaced with simplified KYC and e-KYC processes, streamlining the account opening procedures and making them more accessible to the masses.
Extension of PMJDY with New Features:
- The focus has been shifted from achieving coverage in every household to reaching every unbanked adult, expanding the reach of the program.
- RuPay Card Insurance: The accidental insurance cover provided on RuPay cards for PMJDY accounts opened after 28th August 2018 has been increased from Rs. 1 lakh to Rs. 2 lakh, ensuring enhanced financial security for beneficiaries.
Interoperability and Enhanced Overdraft Facilities:
- Interoperability is enabled through the use of RuPay debit cards or the Aadhaar enabled Payment System (AePS), facilitating seamless transactions across various platforms.
- Overdraft (OD) facilities have been enhanced, with the OD limit doubled from Rs. 5,000 to Rs. 10,000. Additionally, individuals can avail of an overdraft of up to Rs. 2,000 without any conditions.
- The upper age limit for overdraft facilities has been increased from 60 to 65 years, benefiting a broader section of the population.
Jan Dhan Darshak App:
- The Jan Dhan Darshak App, a mobile application, was launched to provide a citizen-centric platform for locating banking touchpoints such as bank branches, ATMs, Bank Mitras, and Post Offices across the country. This app promotes convenience and accessibility for users seeking financial services.
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