Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (प्रधानमंत्री जन धन योजना):PMJDY


What is Pradhan Mantri Jan Dhan Yojna?

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion initiative launched by the Government of India in August 2014. The primary objective of this scheme is to ensure access to financial services, such as banking and deposit accounts, credit, insurance, and pension, to the unbanked and underprivileged sections of society.

What are the main features of PMJDY?

Financial Inclusion:

  • The scheme aims to bring the marginalized and economically weaker sections of society into the formal banking system. It encourages them to open a bank account and become a part of the formal financial network.

Zero Balance Accounts:

  • Under PMJDY, individuals can open a basic savings bank account with zero balance. This makes it easier for people with low income or irregular earnings to have a bank account.

Rupay Debit Card:

  • Every PMJDY account holder is provided with a RuPay debit card. This card can be used for cash withdrawals at ATMs, making purchases at Point of Sale (PoS) terminals, and for online transactions.

Accidental Insurance Cover:

  • Account holders under PMJDY are eligible for an accidental insurance cover, which provides financial assistance in case of accidental death or disability.

Overdraft Facility:

  • After satisfactory operation of the account for a certain period, account holders can avail of an overdraft facility. This helps in meeting unforeseen expenses.

Financial Literacy:

  • The scheme also includes a component of financial literacy to educate account holders about various financial products and services and to promote responsible financial behavior.

Direct Benefit Transfer (DBT):

  • PMJDY facilitates the transfer of subsidies and benefits directly into the bank accounts of beneficiaries, reducing leakages and ensuring more effective and targeted delivery of government subsidies.

What are the achievements of Pradhan Mantri Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana (PMJDY) - National Mission ...
  • During first year of scheme 17.90 crore PMJDY accounts were opened.
  • Continuous increase in no of accounts under PMJDY.
  • PMJDY Accounts have grown three-fold (3.4) from 14.72 crore in March 15 to 50.09 crore as on 16-08-2023. Undoubtedly a remarkable journey for the Financial Inclusion Programme.

Documents Required to Open a PMJDY Account

  • Aadhaar Card

If Aadhaar is not available, any one of the following required:

  • Voter ID Card
  • Driving License
  • PAN Card
  • Passport
  • NREGA Card

If any of the above also not available, an individual categorised as ‘low risk’ by the bank can open a PMJDY account by submitting any one of the following documents:

  • Identity Card with applicant’s photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;
  • Letter issued by a gazetted officer, with a duly attested photograph of the person

Benefits of PMJDY Account:

Benefits of PMJDY Account:
Benefits of PMJDY Account:
  • Interest on deposit
  • Accidental insurance cover of ₹2 lakh for PMJDY accounts opened after August 2018
  • No minimum balance required
  • Life insurance cover of ₹30,000
  • Government scheme beneficiaries will get direct benefit transfers in these accounts
  • Access to pension and insurance products
  • Overdraft facility up to ₹10,000 is available in only one PMJDY account per household, preferably lady of the household (after 6 months of satisfactory operation of the account)

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