Question

Which of the following Government Scheme is related to Financial Inclusion?
1. PMJBY
2. UJWAL YOJNA
3. PMJDY
4. PM - UDAY
5. None of these

Answer 1

Correct Answer - Option 3 : PMJDY

The Correct answer is ​PMJDY.

•  PMJDY:  Stands for Pradhan Mantri Jan Dhan Yojna.
  •  It is a National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
  •  It is important as it provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders.
  • Pradhan Mantri Jan Dhan Yojna (PMJDY), which is one of the biggest financial inclusion initiatives in the world.
  • It was launched by Prime Minister Narendra Modi on August 28, 2014.
  • The Pradhan Mantri Jan Dhan Yojana has been the foundation stone for the Modi government’s people-centric economic initiatives. Whether it is direct benefit transfers, COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, life and health insurance cover, the first step was to provide every adult with a bank account.
• Objectives:
  • Ensure access to financial products & services at an affordable cost.
  • Use of technology to lower cost & widen reach.
  • The important approach adopted in PMJDY: Accounts opened are online accounts in the core banking system of banks, in place of the earlier methods of offline accounts opening with technology lock-in with the vendor.

​

• Financial Inclusion:
  • Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size.
  • Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. It is also called inclusive finance.
  • Advancements in fintech, such as digital transactions, are making financial inclusion easier to achieve.
  • It aims to establish proper financial institutions to cater to the needs of poor people.