UPSC Prelims 2015 Q1: Indian Economy – Digital Payments & Financial Inclusion
‘Pradhan Mantri Jan - Dhan Yojana’ has been launched for
- (a) providing housing loan to poor people at cheaper interest rates
- (b) promoting women’s Self - Help Groups in backward areas
- (c) promoting financial inclusion in the country
- (d) providing financial help to the marginalized communities
Answer: (c) promoting financial inclusion in the country
Explanation
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
Launched on 28 August 2014 as the National Mission for Financial Inclusion.
Its aim is a bank account for every household.
| Benefit | Detail |
|---|---|
| Account | Zero balance savings account |
| Card | RuPay debit card with built-in accident insurance |
| Overdraft | Small overdraft after satisfactory operation of the account |
| Use | Channel for Direct Benefit Transfer of subsidies |
The options checked:
| Option | Verdict |
|---|---|
| (a) Housing loan to poor people at cheaper interest rates | Incorrect |
| (b) Promoting women's Self-Help Groups in backward areas | Incorrect |
| (c) Promoting financial inclusion in the country | Correct |
| (d) Financial help to the marginalized communities | Incorrect; it gives access to banking, not grants |
Answer: (c) promoting financial inclusion in the country.
Why each option is right or wrong
- (a) Incorrect. It is not a scheme for housing loans to poor people.
- (b) Incorrect. Self-Help Groups are promoted under the rural livelihoods mission.
- (c) CORRECT. Jan-Dhan Yojana was launched for promoting financial inclusion in the country.
- (d) Incorrect. It gives bank accounts, not financial help to marginalized communities.
Key point
PMJDY (28 August 2014): zero-balance bank account, RuPay card with accident cover, overdraft; backbone of the JAM trinity.
Remember
Jan-Dhan = bank account for every household.
Common mistakes
- Treating Jan-Dhan as a cash transfer scheme; it only opens accounts.
- Forgetting the JAM link: Jan-Dhan, Aadhaar, Mobile.
- Confusing it with MUDRA, which gives loans.
Exam tip
Jan-Dhan = people's money in a bank. The words 'financial inclusion' are the giveaway.
Sources
- Department of Financial Services — Pradhan Mantri Jan-Dhan Yojana
- Press Information Bureau — Prime Minister launches Pradhan Mantri Jan-Dhan Yojana (28 August 2014)