What is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
Financial inclusion for all citizens
Explanation
The primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) is to ensure financial inclusion for all citizens, especially the unbanked and marginalized sections of society. Launched by the Government of India in August 2014, it is one of the world's largest financial inclusion initiatives.
The scheme aims to provide universal access to banking facilities by opening basic savings bank deposit accounts (known as Jan Dhan accounts) with zero balance requirements. PMJDY operates on six pillars of financial inclusion: universal access to banking services, providing basic banking accounts with overdraft facilities up to ₹10,000, financial literacy programs, creation of a credit guarantee fund, micro-insurance (like PMJJBY and PMSBY), and unorganized sector pension schemes (like Atal Pension Yojana).
Key Points
Jan Dhan accounts come with a free RuPay debit card that includes a built-in accident insurance cover. The scheme serves as the foundational base for the 'JAM Trinity' (Jan Dhan, Aadhaar, and Mobile), which enables the leak-proof transfer of government subsidies directly into the bank accounts of beneficiaries through Direct Benefit Transfer (DBT).
Important Questions and Answers
Question: Which national card payment network is integrated with PMJDY accounts to provide free debit cards and accident insurance?
Answer: RuPay.
Question: What does the acronym 'JAM', which revolutionized the welfare delivery system in India, stand for?
Answer: Jan Dhan, Aadhaar, and Mobile.