Launched in August 2014, the Pradhan Mantri Jan Dhan Yojana is a savings scheme introduced by the PM to ensure that every Indian citizen can open a savings account and gain a sense of financial independence without worrying about maintaining account balances. This scheme targets people belonging to the economically weaker and middle-income groups. It encourages them to open a savings account and benefit from a bouquet of financial facilities and services. Apart from providing a zero balance savings account, account holders also become eligible for benefits like credit insurance and pension as well as easy and affordable remittance, among other things.
What is the benefit of Jan Dhan Account?
Having explained what is PMJDY, let’s take a look at some benefits of the Jan Dhan account. They are as under:
It is a zero balance savings scheme
As mentioned above, the Jan Dhan Account is a zero balance savings account. This means that account holders don’t have to worry about maintaining an average monthly balance in their savings account. They are not charged or penalised for non-maintenance of minimum monthly balances.
Account-holders can avail loans and overdraft facilities
People belonging to economically weaker sections, often do not have a bank account and have to rely on private money lenders for loans. These money lenders often quote high-interest rates, thus adding to the financial woes of such people, and putting them in an infinite loop of loans and EMIs. However, with PMJDY, account holders can avail bank loans at loan interest rates. People who’ve maintained balances for six consecutive months can also avail overdraft facilities of ₹5,000 against savings parked in the PMJDY account.
Account-holders receive accident and life insurance cover
Since people belonging to economically weaker sections cannot afford to invest in insurance, the PMJDY scheme offers the added incentive of accident and life insurance cover. This coverage is provided complimentary with the RuPay debit card under which account holders receive accidental insurance coverage and life insurance coverage worth ₹100,000 and ₹30,000 respectively.
Benefits from government schemes are directly transferred into the PMJDY account
Account-holders can easily access their pension accounts through the PMJDY account. Those individuals who have invested in any government schemes like the SCSS or Atal Pension Yojana, can opt to have their benefits directly transferred into their Jan Dhan savings account.
Final word: Now that you know what is PM Jan Dhan Yojana, and its benefits, you can consider opening your account and availing the benefits that go with it. Visit your nearest bank and find out how to open your PMJDY account.
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Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a national mission for financial inclusion to ensure access to financial services, namely, banking/ savings and deposit accounts, remittance, credit, insurance, and pension in an affordable manner. The account can be opened in any bank branch or business correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with zero balances.
Pradhan Mantri Jan Dhan Yojana : Features
- BSBD account holder should not be maintaining any other savings bank account with any bank/branch to ensure compliance with RBI directives
- Accidental insurance cover of Rs. 1 Lakh under Rupay Scheme and for accounts opened after 28/08/2018 accidental Insurance Cover is of Rs. 2 lakhs
- The scheme provide life cover of Rs. 30,000 payable on death of the beneficiary, subject to fulfilment of the eligibility condition i.e. accounts opened between 15/08/2014 – 31/01/2015
- Easy transfer of money across India
- Beneficiaries of Government schemes will get direct benefit transfer in these accounts
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
- Access to pension, insurance products
- The claim under personal accidental insurance under PMJDY shall be payable if the Rupay card holder have performed minimum one successful financial or non-financial transaction at any of bank’s Channel both Intra and Inter – bank i.e. on-us (ATM/ Micro-ATM/ POS/ Business Correspondent of the bank at locations by any payment instrument) within 90 days prior to date of accident including accident date of RuPay PMJDY Cardholders or off us (same bank channels – Bank Customer /RuPay cardholder transactions at other bank channels).
- Overdraft facility up to Rs. 10,000 is available in only one account per household, preferably lady of the household subject to eligibility and overdraft for Rs. 2000 is hassle-free
Pradhan Mantri Jan Dhan Yojana : Documents Required
Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana:
- If Aadhaar Card/Aadhaar Number is available, then no other documents is required. If address has changed, then a self-certification of current address is sufficient.
- If Aadhaar Card is not available, then any one of the following officially valid documents (OVD) is required: Voter ID card, driving license, PAN card, passport & NREGA Card. If these documents also contain your address, it can serve both as proof of identity and address.
- If a person does not have any of the ‘officially valid documents’ mentioned above, but it is categorized as low risk by the banks, then he/she can open a bank account by submitting any one of the following documents:
Pradhan Mantri Jan Dhan Yojana : Most Important Terms and Conditions (MITC)
- BSBD account, which is operated satisfactorily for at least six months.
- OD to be granted to the earning individual of the family subject to only one member from a family can be granted limit.
- There should be regular credits under DBT/DBTL scheme/other verified sources.
- BSBD account holder should not be maintaining any other savings bank account with any bank/branch to ensure compliance with RBI directives
- Age of applicant between 18 years to 65 years.
- Minor i.e. customer below the age of 18 years are not eligible for OD under PMJDY.
- KCC/GCC borrower is not eligible for PMJDY OD.
- Minimum OD amount Rs, 2,000/- without any assessment subject to fulfilling the above eligibility criteria For amount beyond Rs.2000/-, eligible amount for overdraft is 4 times of average balance of preceding six months or 50% of credit summation in the preceding six months or Rs. 10,000 whichever is lower.
Dedicated Toll free no. for Pradhan Mantri Jan Dhan Yojana (PMJDY) customers and other Financial Inclusion scheme: 18001027788