Mains Paper 3: Indian Economy | Inclusive growth & issues arising from it
From UPSC perspective, the following things are important:
Prelims level: Changes in the PMJDY
Mains level: Financial Inclusion
- The Cabinet has given its nod to turn the Pradhan Mantri JanDhan Yojana (PMJDY) into an open-ended scheme with higher insurance cover and double the overdraft (OD) facility.
- This is being done to continue the scheme also known as the National Mission on Financial Inclusion beyond August 28, 2018.
- The Centre has shifted its emphasis from “each household” to “all adult individuals”.
- The Centre has decided to make it open ended, with the OD limit increased to ₹10,000 from the existing ₹5,000.
- In addition, no condition will be attached for any overdraft up to ₹2,000.
- The age range for availing the OD facility has been revised from the 18-60 years to 18-65 years.
- The accident insurance cover for new RuPay cardholders has been raised to ₹2 lakh.
Success of PMJDY
- Under the PMJDY, 32.41 crore accounts have been opened so far, with deposits worth ₹2 crore.
- It has been touted as the world’s biggest scheme by institutions such as the World Bank.
- Nearly 53 per cent of the account holders are women.
- Around 59 per cent belong to rural and semi-rural regions and about 83 per cent are Aadhar-seeded.