PMJDY & PMJJBY | Descriptive ESI Question asked previously | RBI Grade B 2024

Descriptive ESI Question: – Describe the key features and objectives of the Pradhan Mantri Jan Dhan Yojana and PM Jeevan Jyoti Bima Yojana.

Model Answer

Pradhan Mantri Jan Dhan Yojana (PMJDY):

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program launched by the Government of India on August 28, 2014. The primary objective of this scheme is to ensure that every household in the country has at least one bank account. The program aims to bring the financially marginalized sections of society into the formal banking system and provide them with access to a range of financial services.

Key Features:

  1. Universal Access to Banking Services: PMJDY focuses on providing universal access to banking facilities, ensuring that even the remotest areas have a bank branch or a banking correspondent.
  2. Zero Balance Account: One of the significant features of PMJDY is the provision of zero balance savings accounts. This ensures that people from economically weaker sections can open a bank account without the need for an initial deposit.
  3. RuPay Debit Card: Each PMJDY account holder is issued a RuPay debit card, which enables them to make transactions at ATMs and point-of-sale (PoS) terminals. This card facilitates cashless transactions and financial inclusion.
  4. Accidental Insurance Coverage: Account holders under PMJDY are entitled to accidental insurance coverage of Rs. 2 lakh. This provides financial security in the event of death or disability due to an accident.
  5. Overdraft Facility: PMJDY accounts are eligible for an overdraft facility of up to Rs. 10,000, providing a financial cushion to account holders in times of need.
  6. Direct Benefit Transfer (DBT): The scheme is integrated with various government welfare programs to facilitate the direct transfer of benefits like subsidies, pensions, and scholarships into the beneficiaries’ bank accounts, reducing leakages and ensuring transparent disbursal.
  7. Financial Literacy Campaigns: PMJDY incorporates financial literacy programs to educate account holders about the benefits of banking, digital transactions, and the importance of saving.


  1. Financial Inclusion: The primary objective of PMJDY is to promote financial inclusion by ensuring that every household in India has access to basic banking services.
  2. Encouraging Savings: By providing zero balance accounts and encouraging small deposits, PMJDY aims to promote a savings culture among the economically weaker sections of society.
  3. Access to Credit: The overdraft facility provided under PMJDY aims to empower account holders with access to credit, allowing them to meet unforeseen financial requirements.
  4. Insurance Coverage: The inclusion of accidental insurance coverage ensures that the economically vulnerable have a safety net in the face of unforeseen accidents.
  5. Facilitating DBT: The scheme streamlines the process of disbursing government benefits directly into the bank accounts of beneficiaries, reducing corruption and ensuring efficient delivery of welfare programs.
  6. Promoting Digital Transactions: Through the issuance of RuPay debit cards and financial literacy campaigns, PMJDY encourages people to adopt digital modes of transactions, contributing to the government’s vision of a cashless economy.

PM Jeevan Jyoti Bima Yojana (PMJJBY):

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme launched by the Government of India on May 9, 2015. This scheme aims to provide life insurance coverage at an affordable premium to individuals in the age group of 18 to 50 years.

Key Features:

  1. Affordable Premium: PMJJBY offers life insurance coverage at an extremely affordable annual premium of Rs. 330. The low cost makes it accessible to a wide section of the population.
  2. Accidental Death and Disability Coverage: The scheme provides a life insurance cover of Rs. 2 lakh in case of the policyholder’s death due to any reason. In the case of accidental death or permanent disability, the sum assured is also payable.
  3. Annual Renewal: The policy is renewed annually, and individuals need to enroll and renew their coverage each year. The renewal process ensures that individuals continue to avail of the benefits.
  4. Easy Enrollment: PMJJBY is open to all bank account holders, and individuals can join the scheme by submitting a simple enrollment form and providing a self-declaration of good health.
  5. Auto-Debit Facility: The premium for PMJJBY is directly debited from the insured person’s bank account, simplifying the payment process and ensuring continuity of coverage.


  1. Financial Security: The primary objective of PMJJBY is to provide financial security to the family members of the insured individual in the event of their untimely death.
  2. Affordable Insurance: By offering life insurance at a nominal premium, PMJJBY aims to make insurance accessible to a large section of the population that may not otherwise afford traditional life insurance policies.
  3. Coverage Against Accidents: The scheme recognizes the financial impact of accidental death or disability and provides coverage for such incidents, offering a comprehensive insurance solution.
  4. Incentive for Savings: The annual premium for PMJJBY is linked to the insured person’s bank account, promoting the habit of saving and ensuring timely payment of premiums.
  5. Widening Insurance Penetration: PMJJBY contributes to the government’s efforts to increase the penetration of life insurance in the country, particularly among the economically weaker sections.

In summary, both PMJDY and PMJJBY are integral components of the government’s broader financial inclusion and social security initiatives, aiming to empower individuals economically and provide a safety net against unforeseen circumstances.