PM's Jan Dhan Yojana: Now the Poor Can Swipe a Card Too

New Delhi: Prime Minister Narendra Modi today launched a massive scheme to provide a bank account to every household and said that to end poverty, India has to end "financial untouchability." (Read)

"Even after 68 years of independence, 68 per cent of population is not connected with banking. If we want to get rid of poverty we need to end financial untouchability," the PM said at a function at Delhi's Vigyan Bhawan on Thursday evening.

In a speech sprinkled with humour, anecdotes and observations, the PM talked not just about financial freedom but about aspirations too. "When the rich go out for dinner, they swipe their cards. Now the poor can also swipe cards and pay for services. It will give them psychological strength," Mr Modi said. (Also Read: PM Modi Wants to Take RuPay Cards to Global Level)

Under the Jan Dhan Yojana, account holders will get a debit card and accidental insurance cover of up to a lakh. They will also get an overdraft facility of up to Rs 5,000. The Prime Minister indicated that 1.5 crore people had already signed up for accounts when he noted that providing insurance for that many people in a day would be a new record.
 
"Never in the history of insurance industry have 1.5 crore people been provided accidental insurance in a day," he said. (Highlights of PM's speech)

And he added another incentive to open bank accounts: "Those who open accounts by Republic Day, January 26, will get an additional insurance of Rs 30,000," the Prime Minister announced.

Mr Modi pitched the Jan Dhan Yojana or People's Wealth Scheme as a tool to freedom from the vicious cycle of indebtedness to money lenders.

"People who have opened bank accounts today have joined the country's economic mainstream," he said, stressing on "financial inclusion" and promising his government's commitment to it.

As he launched the programme at the national level, other senior BJP ministers and chief ministers launched it at 76 centres across the country.