Jan Dhan 2.0 Plans: Chequebooks, Higher Overdraft, Credit Cards

Why in the news

Ten years after PMJDY began, the government is weighing upgrades to revive dormant accounts.

Key facts

• PMJDY started in 2014.
• Over 20% of accounts (about 110 million) were inoperative by December 2024.

Upgrades considered

• Chequebooks for account holders.
• Higher overdraft than the current ₹10,000, subject to eligibility.
• Low-value credit cards to encourage digital credit and credit discipline.

Why accounts go dormant

• Instant withdrawal after benefit transfers.
• Low awareness of insurance and overdraft.
• Account seems irrelevant after one transaction.

Exam angle

• Scheme: PMJDY (2014); overdraft cap now: ₹10,000.