Modified Jan Dhan: No of accounts swell to 326.1 mn; Rs 12.66 bn increased

As many as 2 million people have joined the modified Pradhan Mantri Jan Dhan Yojna (PMJDY), taking the total number of account holders in the flagship financial inclusion programme to 326.1 million as on September 5, according to finance ministry data.

Earlier, the government earlier relaunched PMJDY as an open-ended scheme with higher insurance cover and double the overdraft (OD) facility.

The Union Cabinet decided to continue the scheme beyond the four-year period ended August 14 with an aim to take the formal banking system from "every household to every adult".

During the August 15-September 5 period, the total deposits in 32.61 PMJDY accounts witnessed an increase of Rs 12.66 billion.

The balance in PMJDY accounts was Rs 824.90 billion as on September 5.

Under the revamped scheme, accidental insurance cover for new RuPay card holders has been raised from Rs 1,00,000 to Rs 2,00,000 for new PMJDY accounts opened after August 28.

Also, the existing OD limit of Rs 5,000 has been increased to Rs 10,000. Further, no conditions will be attached for OD up to Rs 2,000.
 

The data also showed that nearly 71.8 million people, who opened PMJDY account after August 28, may get the benefit of increased accidental insurance cover of Rs 2,00,000.

Launched in August 2014, the first phase of PMJDY focussed on opening basic bank accounts and RuPay debit card with in-built accident insurance cover of Rs 1,00,000.

Besides, it provided Basic Banking Accounts with OD facility of Rs 5,000 after six months.

Phase II beginning August 15, 2018 was planned to provide micro-insurance to the people and pension schemes to unorganised sector workers through Business Correspondents.

About 53 per cent of PMJDY account holders are women, while 83 per cent of the total accounts are seeded with Aadhaar.