Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Yojana (PMJDY), the flagship financial inclusion initiative, aims to encompass every Indian household under the National Mission for Financial Inclusion for ensuring access to financial services.
Providing access to individuals, primarily to the poor and marginalized sections, through the formal banking structure, savings account, home remittance, credit, insurance, pension, and government benefits, are the targets of this scheme.
PMJDY goal
It is launched by Prime Minister Shri Narendra Modi, it aims:
- Financial inclusion
- Bank literacy
- Organized savings
- Credit
- Insurance
- Direct Benefit Transfer (DBT)
First and foremost, the goal is to provide access to basic banking services to every household in the country with a bank account and to facilitate transfer through the bank account of government subsidy receipts and welfare service.
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How Does PMJDY Work?
Under the PMJDY scheme, a Basic Savings Bank Deposit Account (BSBD) can be opened with any bank in India or through a Banking Correspondent (BC).
The account can be opened by any eligible Indian citizen who does not already have a bank account.
Key Features of PMJDY Account
Feature
Details
Account Eligibility
One account per person who does not already hold a bank account
Minimum Balance
No minimum balance required (Zero balance account)
Interest Rate
As per bank rule for savings accounts
Debit Card
RuPay debit card given to the account holder
Accident Insurance Cover
- ₹1 lac, applicable for accounts opened before 28 Aug. 2018
- ₹2 lacs, applicable for accounts opened after 28 Aug. 2018
Overdraft Facility
Eligible account holders can avail overdraft up to ₹10,000
Interest on Deposits
Deposits earn interest like regular savings accounts
Who Can Open a PMJDY Account?
To open a PMJDY account, the person should:
- Be a citizen of India
- Be aged 10 or above.
- Not having an existing bank account.
If You Have Aadhaar
Aadhaar card is sufficient for:
- Proof of identity
- Proof of Address
- Proof of Age
If the address has changed, a self-certified updated address is acceptable.
If You Do Not Have Aadhaar
From the below list, you can provide one Officially Valid Document (OVD):
- PAN Card
- Passport
- Voter ID
- NREGA Job Card
- Driving License
If these documents have your address, they serve as both identity and address proof.
If you do not have an Aadhaar number or an OVD
For low-risk users, an account may be opened by the authorized banks with the following:
- Photograph identity card issued by the Government
- Letter from a gazetted officer bearing an attested photograph
Benefits of PMJDY
PMJDY accounts provide multiple financial benefits:
1. Direct Benefit Transfer (DBT)
This opens the doors of getting government subsidies and welfare schemes directly transferred to the account.
2. Insurance Benefits
The account holders will be provided:
- Accidental Insurance Coverage
- Interface with Government insurance plans like:
3. Overdraft Facility
The eligible customers can avail an overdraft facility of up to Rs. 10,000/- for personal needs.
4. Interest Income
On the balance amount, savings account holders are entitled to interest as per the rules framed by the respective bank.
5. Connectivity with Other Programs
Opening of a savings account under this scheme would act as a linking facility to the pension scheme, microcredit facilities, etc.
Performance of PMJDY
On a national level, the scheme has significantly increased branch banking, with unbanked households coming into the banking system. Subsequently, the target shifted from covering households to ensuring that every unbanked individual gets a bank account.
Jan Dhan Darshak App
The government offered the Jan Dhan Darshak app for the ease of location of the following in the neighborhood:
- Bank branches
- ATMs
- Post offices
- Banking Mitras
The app also caters to the identification of villages without banking, with a view to augmenting financial inclusion.