The official Launch of India’s biggest financial inclusion mission “Jan Dhan Yojna” was organized today in the National capital and the function was presided by India’s Prime Minister Narendra Modi.
Delivering a speech on the occasion Modi emphasized that the Pradhan Mantri Jan Dhan Yojna was meant to eliminate financial un-touchability in the country and to bring the financially excluded into the banking system. He promised that PMJDY would go a long way in eliminating the gap between the rich and poor in India and would lay the foundations of an equitable society.
In his speech he called it a record breaking day in the history of the insurance and banking sector of India as more than 1.5 Crore savings accounts would be opened and insurance policies issued in the inaugural week of the scheme. Modi further added that by opening a bank account, poor people were taking their first step towards joining the economic mainstream and PMJDY would make a big difference in the lives of women who can now get security for their savings.
Commenting on the launch, Dr. HK Pradhan, Professor of Finance & Economics at XLRI Jamshedpur and Chief Mentor of financial literacy initiative Sanchetna said ” Enhancing access to finance through bank-linkage drive is a basic need for every low-income and vulnerable household and financial literacy enables them to be more informed about their financial decisions. The bank account opening drive has to be followed up with a more sustained financial literacy drive and consumer protection initiatives. As a socially sensitive management institution, XLRI has set a goal for ourselves in spreading financial literacy among the un-banked.”
He further added that “More clarity is needed regarding the availability of the proposed accidental insurance cover and the overdraft facility for the existing account holders opened previously under the financial inclusion plan and even older accounts of rural as well urban households falling in the category of poor households. The broader issues associated with the unfolding financial inclusion drive may also include, for example, as to how the bottom-lines of participating banks will be affected by this move.”
Modi also announced an additional medical insurance of up to Rs 30,000 to those who open their bank account before January 26th 2014.
Several Individuals who had suggested the name of the scheme were honored and recognized for their contribution in the branding of the scheme. Besides the launch function in Delhi, simultaneous launch functions were held in state capitals, district headquarters of different states across the length and bread of the country which were attended by Cabinet Ministers like Sadananda Gowda who visited Kerala and Ravishankar Prasad who launched it in Tamil Nadu.
Earlier in the day, before the launch Modi visited an exhibition on Financial Literacy and Technology as part of the Prime Ministers Jan Dhan Yojna in Delhi and interacted with bank officials. He reviewed their products for promoting financial literacy using technology and offered suggestions for improvement. Watch the video below :