Context:
To address widespread pendency in periodic KYC updation, especially for Direct Benefit Transfer (DBT) and PMJDY accounts, the Reserve Bank of India (RBI) has issued revised norms for regulated entities (REs), ensuring continued access to banking services while setting a firm timeline for compliance.
What is Direct Benefit Transfer (DBT)
Direct Benefit Transfer (DBT) is a system where government subsidies and benefits are directly transferred into the bank accounts of eligible beneficiaries. This eliminates intermediaries, ensuring benefits reach the intended recipients efficiently and effectively. DBT aims to reduce fraud, improve transparency, and enhance the accuracy of benefit targeting, ultimately improving the efficiency of government welfare programs.
What is PMJDY?
Launched on 28th August 2014, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) by the Ministry of Finance is one of the globe’s most ambitious financial inclusion schemes.
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Government of India that allows anyone without a bank account to open a Basic Savings Bank Deposit (BSBD) account at a bank branch or from a Business Correspondent (Bank Mitra) facility.
