The Pradhan Mantri Jan Dhan Yojana, in short PMJDY, is one of the most significant financial inclusion initiatives around the globe. It is a programme introduced by the Government of India which aims to expand affordable access for Indian Citizens to financial services such as bank accounts, credit, insurance policies, pensions etc.
During the Independence Day speech, the Prime Minister of India, Mr Narendra Modi, first announced the programme on the 15th of August 2014. It was officially launched on the 28th of August in the year 2014.
It is a financial inclusion programme. In this programme, minors with a minimum age of 10 can also open an account with a guardian to manage it. The Department of Financial Services runs this programme Ministry of Finance.
On the Inauguration Day of this scheme, 15 million bank accounts were opened. This scheme also holds the Guinness Book of World Records for the most number of bank accounts opened in one week as a financial inclusion campaign.
From the Central to District level, this programme has a structured mechanism for monitoring it. The Finance Minister, a Steering Committee, and a Mission Director are the Mission Head at the centre. The State Implementation Committee monitors the programme at the state level. And at the district level, the job is done by the District Implementation Committee.
The Purpose of Pradhan Mantri Jan Dhan Yojana
The Pradhan Mantri Jan Dhan Yojana can be described as a National Mission on Financial Inclusion with an approach to bring extensive financial inclusion by providing all households throughout the country with banking services and financial literacy.
The scheme ensures that people have access to various financial services, such as having at least a basic savings bank account, remittance facility, insurance, etc. This scheme also aims to benefit both urban and rural areas by having financial literacy programmes, taking financial literacy to the village level, and providing a better understanding of their financial processes.
The scheme of Pradhan Mantri Jan Dhan Yojana
The PMJDY provides a universal access platform for banking facilities with at least one basic account for each household. It gives access to credit, pension and insurance facilities too.
The scheme says that the one who will open an account would be provided with an indigenous RuPay debit card. One can choose any bank or business correspondence to open an account at zero balance. All the bank accounts will be on the banks’ CBS(Core Banking System).USSD facility using mobile banking on fundamental phones will also be supported. And the toll-free number, along with the call centre facility, will be available nationwide.
The main features of the Pradhan Mantri Jan Dhan Yojana scheme include: ● An overdraft facility of Rs. 5000 for Aadhar-linked accounts.
● Provide account holders with a RuPay debit card with accident insurance of Rs. 1 lakh.
● And for the accounts opened from 15th of August 2014 to 26th of January 2015, an Rs. 30000 Life Insurance cover will be passed on to the eligible beneficiaries.
Who is eligible for Pradhan Mantri Jan Dhan Yojana?
If a person is planning to open an account under Pradhan Mantri Jan Dhan Yojana, then the person must meet the norms outlined by the bank. The Pradhan Mantri Jan Dhan Yojana Account eligibility criteria say that the person should be 18-59 years old. A person can be eligible for the Pradhan Mantri Jan Dhan Yojana under certain conditions:
● A person with Indian nationality can apply for the Pradhan Mantri Jan Dhan Yojana scheme.
● A person with no valid document of Indian nationality can also apply for the Pradhan Mantri Jan Dhan Yojana scheme as the bank is required to check the background of the applicant and categories the applicant as ‘low risk’.
● Children above ten can also apply for the Pradhan Mantri Jan Dhan Yojana scheme. They are also known as Minors.
● Moreover, the minors required a guardian to administer the Jan Dhan account. Even minors can use RuPay cards to withdraw money from ATMs.
● People with basic savings accounts with a bank can easily apply for Jan Dhan accounts.
● The persons who can submit any form signed by any gazetted officer also can open the Pradhan Mantri Jan Dhan Yojana account.
What are the documents required for the Pradhan Mantri Jan Dhan Yojana scheme?
A person can easily apply by providing any of the following documents: ● Passport of the person
● Driving license of the person.
● Pan card or Aadhar card of the person.
● Voter ID card.
● A job card is issued by National Rural Employment Guarantee Act (NREGA) and signed by an officer of the state government.
● An ID card with a photo issued by Central or State Governments departments. ● A Gazetted officer issued a letter with an attested photo.
The process of KYC for the Pradhan Mantri Jan Dhan Yojana account is necessary. If the person doesn’t have any valid documents, they can still open a ‘Small Account’ with the help of the bank by submitting a self-attested photo and thumbprint or signing in the presence of the bank officer.
What are the benefits of The Pradhan Mantri Jan Dhan Yojana (PMJDY)?
Under this scheme, a basic savings account can be opened in any bank branch by a person not having any bank account with the following benefits:
● A basic savings account is opened for a person without a bank account. ● There is no minimum balance requirement for any Pradhan Mantri Jan Dhan Yojana accounts. If you want to avail of the check facility, a minimum balance must be maintained.
● Interest is offered on deposits made in the Pradhan Mantri Jan Dhan Yojana savings account.
● An overdraft facility up to Rs. 10,000 is provided if the account is maintained well by the individual for six months.
● A RuPay Debit card is issued to every Pradhan Mantri Jan Dhan Yojana account holder.
● The pension can be accessed, and insurance products are provided under the Pradhan Mantri Jan Dhan Yojana scheme.
● An accident insurance cover of Rs. 1 lakh (enhanced to Rs. 2 lakh to new Pradhan Mantri Jan Dhan Yojana accounts opened after 28/08/2018) under the RuPay scheme.
● The Pradhan Mantri Jan Dhan Yojana account holders are eligible for Direct Benefit Transfer ( DBT ), Pradhan Mantri Jeevan Jyoti Bima Yojana ( PMJJBY), Pradhan Mantri Suraksha Bima Yojana ( PMSBY), Atal Pension Yojana (APY), Micro Units Development and Refinance Agency Bank ( MUDRA ) scheme.
A mobile banking facility is provided to the PMJDY account holders for checking balances, making transactions and other queries.
Banks that provide the Pradhan Mantri Jan Dhan Yojana facility
Pradhan Mantri Jan Dhan Yojana accounts can be opened under both public and private sector banks. The list of banks is provided below:
● Private sector banks
1. ICICI Bank Ltd.
2. Kotak Mahindra Bank Ltd.
3. Indusland Bank Ltd.
4. HDFC Bank Ltd.
5. Axis Bank Ltd.
6. Federal Bank Ltd.
7. ING Vysya Bank Ltd.
8. Dhanalaxmi Bank Ltd.
9. YES Bank Ltd.
10. Karnataka Bank Ltd.
● Public sector banks
1. Oriental Bank of Commerce
2. Allahabad Bank
3. Punjab and Sind Bank
4. Vijaya Bank
5. Union Bank of India
6. Central Bank of India
7. Punjab National Bank ( PNB)
8. Bank of Baroda (BoB)
9. State Bank of India (SBI)
10. IDBI Bank
11. Bank of India ( BoI)
12. Bank of Maharashtra
13. Corporation Bank
14. Indian Bank
15. Canara Bank
16. Dena Bank
17. Syndicate Bank
18. Andhra Bank
How to apply for Pradhan Mantri Jan Dhan Yojana (PMJDY)?
● To open your Pradhan Mantri Jan Dhan Yojana account, you may visit any of your preferable banks that provide the facility of the Pradhan Mantri Jan Dhan Yojana scheme with the required documents.
● The bank will provide a form available in English and Hindi ).
● Fill out the form appropriately and submit it back to the bank with the required documents.
● The account will be created after the bank verifies the documents to check whether you are eligible for the Pradhan Mantri Jan Dhan Yojana scheme or not ● You can also download the form to be filled out from the official website of the Pradhan Mantri Jan Dhan Yojana scheme, fill it out and submit it to the bank with the required documents.
● Online application for the Pradhan Mantri Jan Dhan Yojana scheme is unavailable.
Pradhan Mantri Jan Dhan Yojana (PMJDY) is a National Mission for inclusion to ensure access to financial services, namely, immediate savings and deposit accounts, remittance, credit, insurance, and pension, in an affordable manner. It is a necessary scheme to enhance the inclusive growth of the nation. The scheme also looks after the rural areas with a particular focus on women.