Question map
'Pradhan Mantri Jan-Dhan Yojana' has been launched for
Explanation
Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched as the National Mission for Financial Inclusion on 28.8.2014.[1] It aims to ensure comprehensive financial inclusion by providing universal access to banking facilities with at least one basic bank account to every household.[1] The scheme set out to give every unbanked adult in India a bank account, a financial identity, and access to essential services like credit, insurance, and pensions.[2]
It was one of the largest schemes in the world for financial inclusion, directed towards helping those persons so far without a bank account to open a bank account (without minimum balance requirement), get a debit card, and access to social security schemes like insurance and pension.[3] The scheme is not specifically about housing loans (Option A), women's Self-Help Groups (Option B), or just marginalized communities (Option D), but rather about comprehensive financial inclusion for all unbanked citizens. Therefore, option C is the correct answer.
Sources- [1] https://financialservices.gov.in/beta/en/schemes-overview
- [2] https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155102&ModuleId=3
- [3] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
PROVENANCE & STUDY PATTERN
Full viewThis is a 'Headline Scheme' question. In 2015, PMJDY was the single biggest governance narrative. The question is perfectly fair and checks if you know the *primary mission* versus specific sub-components. If a scheme has 'Yojana' in the title, memorize its one-line 'Vision Statement' verbatim.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Was the Pradhan Mantri Jan-Dhan Yojana (PMJDY) launched to provide housing loans to poor people at cheaper interest rates in India?
- Statement 2: Was the Pradhan Mantri Jan-Dhan Yojana (PMJDY) launched to promote women's Self‑Help Groups in backward areas in India?
- Statement 3: Was the Pradhan Mantri Jan-Dhan Yojana (PMJDY) launched to promote financial inclusion in India?
- Statement 4: Was the Pradhan Mantri Jan-Dhan Yojana (PMJDY) launched to provide financial help to marginalized communities in India?
- Official description states PMJDY was launched as the National Mission for Financial Inclusion on 28.8.2014.
- Its aims are to ensure comprehensive financial inclusion by providing universal access to banking, a basic bank account, financial literacy and social security cover — not housing loans.
- This official press note says PMJDY 'set out to give every unbanked adult in India a bank account, a financial identity, and access to essential services like credit, insurance, and pensions.'
- The listed objectives emphasize banking the unbanked and access to general financial services, not specifically providing subsidized housing loans.
- This passage contains the standalone line: 'providing housing loan to poor people at cheaper interest rates.'
- The excerpt does not explicitly link this line to PMJDY in the quoted text, so it does not reliably show PMJDY was launched for housing loans.
Explicitly describes PMJDY as a national mission for financial inclusion providing access to basic financial services and notes mass account opening.
A student could infer that a scheme focused on basic accounts/debit cards is less likely to be primarily a targeted housing-loan program and could check for separate housing-specific schemes.
Shows PMJDY was part of the JAM trinity aimed at bringing the unbanked into bank accounts, debit cards, and linking to subsidies/insurance rather than lending housing credit.
Combine this with the basic fact that housing-loan programs normally center on mortgage/credit provisions to suspect PMJDY is not a housing-loan scheme and look for distinct housing schemes.
States PMJDY's purpose as eradicating financial untouchability and achieving financial inclusion for those without bank accounts.
A student could reason that inclusion/account access differs from subsidized housing-credit objectives and therefore seek evidence of separate loan-focused initiatives.
Frames PMJDY as necessary for bringing the unbanked into institutional finance, implying its primary tools are accounts/entry points rather than targeted loan products.
Use this pattern to distinguish entry-level financial-access schemes from targeted credit programs (like housing loans) when evaluating the statement.
Mentions Pradhan Mantri MUDRA Yojana as an explicitly loan-oriented scheme (for small entrepreneurs), illustrating that loan provision in the 'Pradhan Mantri' portfolio is often handled by separate schemes.
By analogy, a student could expect housing loans would similarly be under a distinct scheme (not PMJDY) and so search for a named housing loan/scheme to test the claim.
- Official scheme overview states PMJDY was launched as the National Mission for Financial Inclusion.
- The stated aim is comprehensive financial inclusion and universal access to banking for households, not specifically promotion of women's Self‑Help Groups.
- Describes PMJDY as launched to give every unbanked adult a bank account and financial identity.
- Lists access to services like credit, insurance and pensions as PMJDY objectives—no mention of promoting women's Self‑Help Groups as the launch purpose.
Explicitly describes PMJDY as launched to eradicate financial untouchability and achieve financial inclusion for every individual without a bank account.
A student could infer that a scheme whose stated goal is universal individual financial inclusion likely targets unbanked persons broadly rather than specifically women's SHGs in backward areas; check whether official objectives mention SHGs.
States PMJDY is a national mission for financial inclusion providing access to basic banking services and notes the large number of individual accounts opened.
Use the pattern that PMJDY focuses on opening individual bank accounts to question whether a program aiming at SHG promotion would instead emphasize group accounts, group lending or SHG linkage language.
Links PMJDY with the JAM (Jan Dhan-Aadhaar-Mobile) reform and describes aims like enabling bank accounts, debit cards, and access to social security and direct transfers.
Extend by noting JAM's emphasis on individual identification and transfers; this suggests PMJDY's primary design was individual financial access rather than specifically promoting women's SHGs in backward areas.
Poses PMJDY as necessary for bringing the unbanked into institutional finance—framing it as inclusion of poorer sections generally.
A student could reason that a scheme framed to bring 'the unbanked' into institutions is broad-based; to support the claim about SHGs one would expect examples or language about SHG promotion, which is absent here.
- Explicitly names PMJDY as a 'national mission for Financial Inclusion' and gives its launch year (2014).
- Describes the scheme's objective — provide access to basic financial services through banks — and cites large account uptake (34+ crore).
- States PMJDY was launched in August 2014 to 'eradicate financial untouchability' and achieve financial inclusion for those without bank accounts.
- Provides corroborative quantitative evidence of account openings (around 41.75 crore by Jan 2021), reinforcing the inclusion objective.
- Gives launch date (24 Aug 2014) and explicitly frames PMJDY as a large financial‑inclusion scheme to help persons without bank accounts open zero‑balance accounts.
- Links PMJDY to the JAM reform (Jan Dhan–Aadhaar–Mobile) and practical features (debit card, access to social security), showing its role in inclusion and DBT enablement.
- Explicitly describes PMJDY as a national mission for financial inclusion launched in 2014.
- States scheme seeks to provide access to basic financial services through banks, targeting those previously excluded.
- Says PMJDY was launched to 'eradicate the financial untouchability' — language indicating focus on marginalized/unbanked groups.
- Specifies goal of achieving financial inclusion for individuals without bank accounts and cites large account openings.
- Describes PMJDY as directed towards helping persons without bank accounts to open accounts without minimum balance.
- Notes provision of debit cards and access to social security schemes, indicating support for vulnerable populations.
- [THE VERDICT]: Sitter. This was the flagship scheme of the new government in 2014. Covered in every newspaper, Economic Survey, and standard book (Singhania/Spectrum).
- [THE CONCEPTUAL TRIGGER]: Financial Inclusion and the JAM Trinity (Jan Dhan-Aadhaar-Mobile) architecture.
- [THE HORIZONTAL EXPANSION]: Map the distractors to their actual schemes: Option A (Housing loans) = PM Awas Yojana; Option B (Women's SHGs) = Deendayal Antyodaya Yojana-NRLM; Option C = PMJDY. Also memorize PMJDY pillars: Universal access, Overdraft (₹10k), RuPay Card, and Accident Insurance.
- [THE STRATEGIC METACOGNITION]: When studying schemes, play 'Name That Scheme' with the objectives. UPSC swaps objectives. If you knew PM Awas Yojana was for housing, Option A is eliminated instantly. Never study a scheme in isolation; study it alongside its confusing cousins.
Multiple references describe PMJDY's core objective as bringing the unbanked into the formal banking system by enabling bank accounts, debit cards and access to insurance/pension, not as a loan program.
Understanding the primary objective and features of flagship schemes (what they provide directly) is high-yield for UPSC. Questions often ask to distinguish scheme purposes, beneficiaries, and services; mastering this helps eliminate distractors in prelims and frame precise answers in mains. Learn by tabulating scheme objectives, primary beneficiaries, and core deliverables.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
Evidence links PMJDY to the JAM (Jan Dhan–Aadhaar–Mobile) framework and to enabling direct subsidy transfers by providing bank accounts to those without accounts.
JAM/DBT is repeatedly examined in governance and economy contexts; knowing how PMJDY fits into JAM helps answer policy rationale and implementation questions. Focus on mechanism (bank account as conduit), scheme interlinkages, and impact indicators.
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
References consistently describe PMJDY as about access to banking and social-security services; they do not describe PMJDY as providing housing loans at concessional rates — indicating a functional distinction between inclusion schemes and loan-providing schemes.
UPSC often tests the ability to differentiate between similar-sounding schemes (e.g., inclusion vs. credit schemes). Master this by comparing scheme objectives, instruments (accounts vs loans), and implementing agencies — useful for prelim MCQs and mains explain/criticize questions.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
The references consistently describe PMJDY as a national mission to bring unbanked individuals into the formal banking system, not as a programme for SHGs.
High-yield for UPSC: questions often ask the objectives and scope of flagship schemes. Mastering the stated objective helps quickly eliminate distractors that misattribute purposes (e.g., SHG promotion). Connects to topics on banking, poverty alleviation and social security; prepare by comparing official objectives and scheme summaries.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
One reference places PMJDY within the JAM (Jan Dhan–Aadhaar–Mobile) reform aimed at efficient subsidy transfers, clarifying its role in enabling DBT rather than SHG promotion.
Frequently tested concept: understanding JAM explains why PMJDY was launched and its administrative use-cases (DBT, subsidy flow). It links to public finance, governance and technology-in-public-service themes. Study approach: learn components of JAM and examples of how each component supports welfare delivery.
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > JAM Trinity: Jan Dhan-Aadhar-Mobile > p. 779
References report large numbers of accounts opened under PMJDY, showing the scheme's measurable financial inclusion outcome rather than SHG development.
Useful for evaluation and polity/economy answers: UPSC likes evidence-based assessment of schemes (achievement vs. objective). Knowing typical metrics (accounts opened, beneficiaries) helps in answer-writing and critique. Prepare by memorising key quantitative outcomes quoted in standard sources.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
PMJDY is repeatedly described as a national mission to provide basic financial services and bring the unbanked into formal banking, so understanding core objectives and instruments of financial inclusion is central.
High‑yield for UPSC questions on banking and social policy: explains why schemes are designed, how they expand access (accounts, debit cards, insurance/pension linkages), and connects to topics like NBFCs, formal finance and poverty alleviation. Prepare by mapping scheme objectives to instruments and outcomes and practicing cause–effect questions (e.g., scheme → inclusion metrics).
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.18 National Strategy for Financial Inclusion (2019-24) > p. 88
PMJDY 2.0 (2018 Update): The target shifted from 'Every Household' to 'Every Unbanked Adult'. The overdraft limit was raised to ₹10,000, and the age limit for overdraft was increased from 60 to 65 years. Accident insurance on RuPay cards was hiked to ₹2 lakh.
Etymology Hack: 'Jan-Dhan' translates to 'People's Wealth'. 'Housing' implies an asset (Awas). 'SHG' implies a group (Sangathan). 'Financial Inclusion' is the only broad, generic term that fits 'People's Wealth' (access to money systems). The name often hides the objective.
Mains GS3 (Inclusive Growth): PMJDY is the 'J' in the JAM Trinity, forming the bedrock of India's Digital Public Infrastructure (DPI). It enabled the world's largest Direct Benefit Transfer (DBT) during COVID-19. Cite it as the prerequisite for 'Governance at Doorstep'.