Pradhan Mantri Jan Dhan Yojana (PMJDY)

Under the Government’s initiative of National Mission for Financial Inclusion, the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme was launched. The OM Jan Dhan Yojana was launched on 28th August 2014 for an initial period of four years. However, given the popularity and the benefit of the PMJDY scheme, it has been extended beyond 28th August 2018.

Objective of the PMJDY scheme

The Prime Minister, Mr Narendra Modi introduced the Pradhan Mantri Jan Dhan Yojana scheme to promote banking and financial literacy among the lower income group of individuals. The Government wanted to provide the poor population with a simple bank account for organized savings, access to credit facilities, insurance benefit and pension. With the advent of the scheme, the Government wanted every Indian household to have a bank account in their name. Moreover, the account was launched to provide a platform through which other Government welfare schemes could also be launched.

How does the Pradhan Mantri Jan-Dhan Yojana scheme work?

Under the PMJDY scheme, individuals can open a Basic Savings Bank Deposit Account (BSBD) in their name. The bank account can be opened with any bank of India or through Bank Mitra outlets. The bank account under the PMJDY scheme can be opened by individuals who have no bank account in their names.

Pradhan Mantri Jan-Dhan Yojana Features 

The salient features of the Pradhan Mantri Jan-Dhan Yojana scheme are mentioned below –

• One account is allowed for one person having no bank account in his/her name
• No minimum balance is required to be maintained in the account. The account would be operable even when there is a zero balance in it
• The amount which is deposited into the account earns an interest rate
• A RuPay debit card is offered with the account in the name of the account holder
• An Accident Insurance Cover is available with the debit card offered to the account holder. For accounts opened before 28th August 2018, the insurance cover is for Rs.1 lakh and for accounts opened thereafter, the cover has been increased to Rs.2 lakhs
• If you had opened the account for the first time between 15th August 2014 and 31st January 2015
• Eligible account holders can avail an overdraft facility of up to Rs.10,000

How to open the PM Jan-Dhan Yojana Account?

To open a PM Jan Dhan Yojana account, you can approach any bank and fill up an application form for account opening. Individuals aged 10 years and above can open a PMJDY account.

If you have an Aadhaar Card, no other document is needed to open the account. You can submit the Aadhaar card which would serve as an identity proof, age proof and address proof and open the account. If the address mentioned in the Aadhaar card has changed, you can provide a self-certified copy of the new address and it would be sufficient.

If you don’t have an Aadhaar card, then you have to submit any one of the following Officially Valid Documents (OVD) –

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

If any of the OVD contains your address, it would also serve as your address and identity proof.

If you don’t have an Aadhaar Card as well as any of the above-mentioned OVDs, you can still open a PMJDY account if the bank considers you to be a low-risk individual. For opening the account in this case you would have to submit any of the following documents –

• An identity card which contains your photograph and which is issued by State Government Departments, Central Government Departments, Statutory Authorities, Regulatory Authorities, Scheduled Commercial Banks, Public Sector Undertakings or Public Financial Institutions
• A letter which is issued by a gazetted officer along with your duly attested photograph

Benefits of Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana account provides many benefits to account holders. Some of these benefits include the following –

• You become eligible for Direct Bank Transfer as well as other welfare schemes launched by the Government. These schemes include the following –

• Pradhan Mantri Jeevan Jyoti Bima Yojana
• Pradhan mantra Suraksha Bima Yojana
• Micro Units Development & Refinance Agency Bank scheme (MUDRA scheme)

• You get an interest income on your deposited amount.
• Free insurance cover helps you cover the financial risks associated with accidental death or disablement
• You can get Government subsidies and grants directly credited to your PMJDY account which is fast, quick and convenient
• You can easily buy insurance and pension products and create a financial portfolio
• The overdraft facility allows you instant access to funds in case of financial emergencies
• The PM Garib Kalyan Yojana was announced by the Finance Minister on 26th March 2020 under which women account holders of the PMJDY scheme have been offered Rs.500 every month for three months

Progress of Pradhan Mantri Jan Dhan Yojana

The PMJDY scheme has seen popularity as it has brought many households under the ambit of banking. Now, the scheme has shifted its focus from even unbanked households to every unbanked individual motivating every individual to open a PMJDY account in his/her name. Some of the statistics showing progress of the scheme are as follows –

• As of 19th August 2020, about 40.35 crore PMJDY accounts have been opened. Out of this, 63.6% of the accounts are rural and 55.2% accounts belong to women
• Out of the total number of accounts, 34.81 crore were operative as of August 2020
• The total balance of aggregate deposits in the account stand at Rs.1.31 lakh crores where the average deposit amount is Rs.3239
• 29.75 RuPay cards have been issued under the scheme

Jan Dhan Darshak App

The Government launched the Jan Dhan Darshak App for individuals interested in the PMJDY scheme. This application allows individuals to locate the nearest bank branches, post offices, ATMs or Bank Mitras. Moreover, the Government is also using the application to identify villages where banking touchpoints are not available so that remote villages can also be offered banking facilities for their financial literacy and development.

The Pradhan Mantri Jan Dhan Yojana was launched with a vision to provide banking facilities to all without discrimination. Ever since the scheme was launched, it has become popular among the low income group individuals as it gives them access to many facilities.