Government Announces Potential Closure of Inactive Jan Dhan Bank Accounts
The Department of Financial Services (DFS) has officially denied recent media claims suggesting that banks were instructed to close dormant Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts. In a statement released on July 8, the ministry emphasized that no such directive has been issued, labeling the reports as “factually incorrect.” The DFS also highlighted the ongoing growth in the number of PMJDY accounts and announced a new campaign aimed at enhancing financial inclusion across the country.
Clarification from the Ministry of Finance
In response to the circulating reports, the Ministry of Finance clarified that it has not mandated the closure of inactive PMJDY accounts. The DFS stated, “In connection with reports appearing in media that the Department of Financial Services (DFS), M/o Finance, has asked banks to close inactive PM Jan Dhan Yojana accounts, the Department of Financial Services has said that it has NOT asked banks to close inactive PM Jan Dhan Yojana accounts.” This statement aims to reassure account holders that their funds remain secure and that there is no immediate threat of account closures.
Furthermore, the DFS noted that the total number of PMJDY accounts continues to rise, indicating a positive trend in financial inclusion efforts. The ministry has not received any reports of mass closures of inactive accounts, reinforcing its commitment to maintaining the integrity of the PMJDY initiative.
Nationwide Campaign for Financial Inclusion
To further promote financial inclusion, the government has initiated a nationwide campaign that began on July 1. This three-month initiative focuses on encouraging the use of Jan Dhan accounts and associated schemes, such as the Jeevan Jyoti Bima Yojana and the Atal Pension Yojana. As part of this campaign, banks are tasked with conducting re-KYC (Know Your Customer) processes for accounts that are inactive and reaching out to account holders to reactivate their accounts.
The DFS is committed to monitoring the status of inactive PMJDY accounts throughout this campaign. The ministry aims to ensure that account holders are aware of the benefits available to them and are encouraged to utilize their accounts actively. This proactive approach is designed to enhance financial literacy and participation in the banking system.
Understanding the Pradhan Mantri Jan Dhan Yojana
The Pradhan Mantri Jan Dhan Yojana is a flagship program launched by the Indian government to provide affordable banking services to all citizens, particularly those who are unbanked. The initiative offers several benefits, including no minimum balance requirement, interest on deposits, and a free RuPay debit card. Additionally, account holders can access accidental insurance coverage of up to Rs 2 lakh and an overdraft facility of up to Rs 10,000, subject to eligibility criteria.
To open a PMJDY account, individuals need to provide specific documentation. If they possess an Aadhaar card, no additional documents are required. However, if the address has changed, a self-declaration is sufficient. For those without an Aadhaar card, other valid identification documents, such as a voter ID or passport, can be used. The program aims to empower individuals by providing them with essential banking services and financial security.
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