Page 33 - Banking Finance January 2024

ARTICLE

transfer funds, check balance through a normal phone of a secured, insured, digitalized and a financially
which was earlier limited only to smart phones. Mobile empowered society.
banking for the poor would be available through Promotion of Aadhaar-based biometric authentica-
National Unified USSD Platform (NUUP) for which all tion and digital payment solutions:
banks and mobile companies have come together.
A digital revolution is in making with more than 100
With a view to further strengthening the financial crore Indians having digital identity through Aadhaar
inclusion penetration in the country, PMJDY has been & mobile seeding, enabling them to authenticate and
extended beyond 14.8.2018 with the focus on opening carry out financial transactions. Using biometric ID,
of accounts shifting from "every household" to "every highly cost-effective payments solutions have been
unbanked adult" and making the scheme more created both for banking services and for retail
attractive with following modifications: payments. There has been significant growth in digital
i. Existing Over Draft (OD) limit of Rs. 5,000 revised transactions- UPI, AePS, RuPay Card
to Rs. 10,000;
5. Direct Benefit Transfer or DBT is an attempt to change
ii. There will not be any conditions attached for OD
upto Rs. 2,000; the mechanism of transferring subsidies launched by
Government of India. This program aims to transfer
iii. Age limit for availing OD facility revised from 18-60 subsidies directly to the people through their bank
years to 18-65 years; and
accounts. It is hoped that crediting subsidies into bank
iv. The accidental insurance cover for new RuPay card accounts will reduce leakages, delays, etc. The primary
holders raised from existing Rs.1 lakh to Rs. 2 lakh aim of this Direct Benefit Transfer program is to bring
to new PMJDY accounts opened after 28.8.2018. transparency and terminate pilferage from distribution

A digital pipeline has been laid for the implementation of funds sponsored by Central Government. Payment is
of PMJDY through linking of Jan-Dhan account with made in the bank accounts of the beneficiary using the
mobile and Aadhaar [Jan Dhan-Aadhaar-Mobile (JAM)]. Aadhaar Payment Bridge of NPCI.
This, infrastructure pipeline is providing the necessary
backbone for DBT flows, adoption of social security/ 6. Pradhan Mantri Mudra Yojana (PMMY): Micro Units
Development and Refinance Agency (MUDRA) Bank is
pension schemes, facilitating credit flows and
promoting digital payments through use of Rupay Cards a new institution being set up by Government of India
and thereby accelerating the pace of attaining the goal for development and refinancing activities relating to
micro units. The purpose of MUDRA is to provide
funding to the non corporate small
business sector. Loans worth about
Rs 1 lakh crore have been
sanctioned to small entrepreneurs
under the Pradhan Mantri MUDRA
Yojana benefiting 2.5 crore
borrowers.

7. Pradhan Mantri Suraksha Bima
Yojana is a government-backed
accident insurance scheme. It was
formally launched on 9 May 2015.
9.43 Crore people have taken
policies of Pradhan Mantri Suraksha
Bima Yojana. PMSBY is available to
people between 18 and 70 years of
age with bank accounts. It has an
Source : Financial inclusion report annual premium of Rs.12. In case of accidental death

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