Spreading the banking net wide is one of the key policy focus areas of the Modi administration and the launch of the scheme within 100 days of the government signals its commitment to take on the challenge of executing mega programmes.
The Jan Dhan Yojana, the massive financial inclusion drive, aims to open 7.5 crore bank accounts and provide banking facility to the vast segment of the population which still remains cut off from the financial system. Under the scheme, a person opening an account will get a Rupay debit card, a Rs 1 lakh accident insurance policy as well as a Rs 30,000 life insurance cover.
The facility of an overdraft would be added to the accounts after keeping a watch on the credit history and operation of the accounts for six months. The government had to defer the facility as banks had expressed concern over the move.
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