Definition
Pradhan Mantri Jan Dhan Yojana
PM Jan Dhan Yojana is the financial inclusion scheme that provides basic, no-frills bank accounts to unbanked households, often with overdraft and insurance benefits.
PM Jan Dhan Yojana (PMJDY) drove a massive expansion of bank accounts among unbanked households, offering zero-balance accounts with a RuPay debit card, accident insurance cover and an overdraft facility for eligible holders. It brought crores of citizens into the formal financial system.
The accounts form the backbone of the JAM trinity that powers Direct Benefit Transfer, letting subsidies and welfare payments reach beneficiaries directly. By creating a base of formal accounts, PMJDY underpins much of India's later progress in digital payments and targeted welfare.
Related terms
- Direct Benefit Transfer (DBT)Direct Benefit Transfer is the routing of government subsidies and welfare payments straight into beneficiaries' bank accounts to cut leakage and middlemen.
- NPCINPCI is the National Payments Corporation of India, the umbrella organisation that operates retail payment systems including UPI, RuPay and IMPS.
- Pradhan Mantri Mudra YojanaPM Mudra Yojana provides collateral-free loans to small and micro non-corporate businesses through banks and other lenders to support self-employment.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.