Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan mantri jan dhan yojana: Here we have collected some information about the jan dhan yojana and tried to present it in a simple and lucid manner. What are jan dhan yojana account, pradhan mantri jan dhan yojana benefits, jan dhan yojana rules etc. The pm jan dhan yojana is basically a financial inclusion programme. The rest of the detail is covered in the post below.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a nation-wide financial inclusion program of Government of India. It was announced by the Prime Minister of India Shri Narendra Modi on 15 August 2014.

Details of PMJDY

Launched Date 28 August 2014 

It was launched for a period of 4 years. However now it has been made an open ended scheme that will continue forever.

Ministry Responsible to Run the Scheme Department of Financial Services, Ministry of Finance
Purpose Ensure access to financial services such as Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance and Pension in an affordable manner with special focus on sections of disadvantaged and low-income groups.
Slogan Mera Khatha, Bhagya Vidhatha (“My account brings me good fortune”)
Age of Eligible Beneficiaries 18-65 Years

Special Benefits under the PMJDY Scheme

  • The bank account under PMJDY does not require maintaining minimum balance.
  • Provides facility to open “Small Account” in case a person has no valid identification document
  • Interest on Deposit
  • Account holder will get RuPay Debit card with inbuilt accident insurance cover of Rs 2 lakh.
  • Life insurance cover of Rs 30,000.
  • Overdraft facility up to Rs.10000 after satisfactory operation of the account for 6 months
  • DBT Facility


6 Pillars of Pradhan Mantri Jan Dhan Yojana (PMJDY)

PMJDY was launched to focus on coverage of every household for financial inclusion. It was launched to be executed in the Mission Mode, comprising of six pillars

  1. Universal access to banking facilities
  2. Providing Basic Banking Accounts with overdraft facility and RuPay Debit card to all households
  3. Financial Literacy Programme
  4. Creation of Credit Guarantee Fund
  5. Micro-Insurance
  6. Unorganized sector Pension schemes like Swavalamban

Mission Mode Implementation of PMJDY

Phase I: 15 August 2014 – 14 August 2015

  • The first 3 pillars of the scheme were implemented during the first phase of the scheme.
  • The account holders were given RuPay Debit card which has inbuilt accident insurance cover of Rs 1 lakh
  • Aadhaar number was seeded to make account ready for DBT payment

Phase II: 15 August 2015 – 14 August 2018

  • The last three pillars were carried out in the second phase of the scheme implantation.
  • Overdraft facility up to Rs 5000/- after six months of satisfactory operation / history
  • Creation of Credit Guarantee Fund for coverage of defaults in A/Cs with overdraft limit up to Rs 5,000/-.

Phase III: Beyond 14 August 2018

  • The Continuation of PMJDY beyond August 2018 will focus on opening accounts from “every household to every adult”.
  • Existing Overdraft (OD) limit of Rs 5,000 raised to Rs 10,000.
  • There will not be any conditions attached for OD upto Rs 2,000.
  • Age limit for availing OD facility has been revised from 18-60 years to 18-65 years.
  • Accidental insurance cover for new RuPay card holders has been raised from Rs 1 lakh to Rs 2 lakh to new PMJDY accounts opened after August 28, 2018.

Features under PMJDY

No-frills account
·         Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet with Zero balance (Basic Savings Bank Deposit Account (BSBDA)).

·         However, to avail cheque book, account holder will have to fulfill minimum balance criteria.

Documents Required to Open Account under PMJDY
An account under this scheme can be opened by presenting an officially valid document such as:

  • ·         The passport
  • ·         The driving licence
  • ·         The Permanent Account Number (PAN) Card
  • ·         The Voter’s ID issued by Election Commission of India
  • ·         The Aadhar Card
  • ·         Any other document as notified by the Central Government in consultation with the Regulator
Relaxed KYC Norm – Small Account
·         A person not having any valid identification document can also open bank account under this scheme. Such account is called “Small Account”.

·         The Person will need to present 2 self-attested photographs to officials of the bank.

·         Such accounts are valid for 1 year, henceforth, would be allowed to continue for a further period of twelve more months if the account-holder provides a document showing that they have applied for any of the Officially Valid Document within 12 months of opening the small account.

·         For such accounts, the balance at any point of time should not cross Rs 50,000, aggregate withdrawals should not be more than Rs 10,000 in a month and aggregate credits have been limited to not more than Rs 1 lakh a year.

Accidental Insurance
·         The account holders will get an accidental insurance cover of Rs 2 lakh through Rupay Debit Card, provided by HDFC Ergo.

·         To get benefit of Accidental Insurance Cover, RuPay Debit Card must be used at least once within 90 days prior to the date of accident.

·         Also, no premium is charged to the beneficiary, NPCI will pay the premium.

Life Insurance
·         A life cover of Rs 30,000, provided by LIC, which will be payable on death of the beneficiary
Overdraft Facility
·         Individuals between 18 to 65 years can avail the overdraft facility up to Rs.10000 after satisfactory operation of the account for 6 months.

·         However, this facility is restricted to only one account per household.

·         OD facility would be covered by the Credit Guarantee Fund

Direct Benefit Transfer
·         Aadhaar-linked bank account enables direct money transfer of government schemes into bank accounts to prevent corruption
Mobile Banking
·         Mobile and Aadhaar linked Accounts facilitates basic financial transactions through a mobile based PIN system using “Mobile Banking PoS”

·         USSD based mobile banking provide services like Balance Inquiry, Mini Statement and Fund transfer

Micro-Insurance Facility
·         Insurance Regulatory and Development Authority (IRDA) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society.

·         A micro-insurance policy can be a general or life insurance policy with a sum assured of Rs 50,000 or less.

Unorganized Sector Pension Scheme – Swavalamban
·         The Scheme is regulated and managed by the PFRDA (Pension Fund Regulatory and Development Authority).

·         The Central Government would contribute a sum of Rs. 1,000 in each National Pension System (NPS) account opened under the Scheme where the subscriber is able to save Rs.1,000 to Rs.12,000 during a financial year.

·         This will encourage people from the unorganized sector to voluntarily save for their retirement.

Free ATM withdrawals allowed
·         Number of 4 withdrawals are free in a month

·         Rs. 10.00 per withdrawal will be levied for withdrawals exceeding 4 per month

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