Prime Minister Narendra Modi on Friday announced an ambitious financial inclusion plan to bring unbanked into the ambit of banking through “Pradhan Mantri Jan Dhan Yojana” under which poor will be provided a bank account with the facility of a debit card and a built-in insurance cover of Rs 1 lakh.
“I wish to connect the poorest citizens of the country with the facility of bank accounts through this yojana. There are millions of families who have mobile phones but no bank accounts,” said Prime Minister in his Independence Day address to the nation. Mr Modi said that the economic resources of the country should be utilised for the well-being of the poor.
He said that the change will commence “from this point.” Prime Minister noted that the yojana will open the window.
“Therefore, an account holder under ‘Pradhanmantri Jan-Dhan Yojana’ will be given a debit card. An insurance of Rs 1 lakh will be guaranteed with that debit card for each poor family, so that such families are covered with the insurance of Rs 1 lakh in case of any crisis in their lives,” said the Prime Minister.
According to official sources the scheme will bring 7.5 crore households in the banking fold. Government plans to create two free bank accounts for every unbanked household.
The financial inclusion mission is expected to have two phases starting from August 15 this year. The first phase will get over by August 14, 2015 and the second phase by August 14, 2018.