Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Posted by  Fintra , updated 2024-10-22

India's Government has crafted various saving schemes for the welfare of its citizens. The main objective of these schemes is to support all the individuals. Thus, Pradhan Mantri Jan-Dhan Yojana (PMJDY) is one such scheme that was announced by the Prime Minister of India on 15th August 2014. 

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched under the National Mission for Financial Inclusion. This scheme aims to provide universal access to banking facilities by having at least one basic banking account for every household, financial literacy, access to credit, insurance and pension in an easy, affordable manner. The scheme is run by the Department of Financial Services, Ministry of Finance.

This scheme also provides access to various financial services to the excluded sections such as people with low incomes. Such a deep interaction at an affordable cost is only possible with the effective use of technology which is also kept in mind through other schemes like Digital India. In this blog, Fintra will enhance your knowledge about Pradhan Mantri Jan-Dhan Yojana (PMJDY) by highlighting the following topics:

1. What is Pradhan Mantri Jan-Dhan Yojana (PMJDY)?
2. Who offers this scheme?
3. Features and Benefits of PMJDY
4. Eligibility criteria to open an account under Jan Dhan Yojana 
5. Documents required to open an account under Jan Dhan Yojana
6. How to Open a Pradhan Mantri Jan-Dhan Yojana account?
7. Banks Offering PMJDY Account

What is Pradhan Mantri Jan-Dhan Yojana (PMJDY)?

PMJDY is known to be the nationwide scheme launched by the Government of India. It ensures the financial inclusion of every individual who doesn't possess a bank account in India. PMJDY scheme provides access to financial services such as banking, savings and deposit accounts, remittance, credit, insurance, and pension in an affordable way to all individuals. Since the time this scheme took birth in August 2014, according to the reports by the Ministry of Finance, nearly 4 Crore bank accounts have been opened till September 2014. An individual can visit any of its desired bank branches to open a PMJDY account with zero balance requirement. However, if you desire to obtain a cheque book facility, it will have to deliver minimum balance requirements.

Who offers this scheme?

Anyone may open a PMJDY account in any of its desired bank branch or Business Correspondent (Bank Mitra) outlet. Moreover, the accounts opened under PMJDY can also be opened with a zero balance. However, if you desire to obtain a cheque book, then you'll have to fulfil the minimum balance criteria. All the account holders will be provided with a RuPay debit card that can be used across all ATMs for cash withdrawals.

Features and Benefits of PMJDY 

• PMJDY is for all households, urban and rural in India
• One basic savings bank account will be opened for the unbanked person
• Under this yojana, appropriately more than 15 crore bank accounts will be opened for the poor
• It's not needed to maintain any minimum balance in the PMJDY accounts. Therefore, these accounts can be opened with zero balance. However, if you desire to avail cheque facilities, then you'll have to maintain a minimum balance
• Interest will be earned on the deposited amount in the PMJDY accounts
• RuPay Debit Cards will be provided to the PMJDY account holders once they open it
• Along with the issue of RuPay card to the PMJDY account holders, they will also get an accidental insurance cover of Rs.1 lakh, and it'll be enhanced to Rs. 2 lakh for the new PMJDY accounts that have been opened after 28.8.2018
• The eligible PMJDY account holders who have opened their accounts for the first time between 15.8.2014 to 31.1.2015 will get life insurance cover of Rs. 30,000 
• Under this scheme, an account holder can take an overdraft of up to Rs. 10,000 from a bank after six months from opening the account. The tenure of the loan under this scheme is 36 months with zero processing fees. This facility is available against one account per household. Although the quantum of the loan appears small, it is a boon to individuals who are below the poverty line. Moreover, this will enable them to reinvest these funds in more profitable avenues. Overall this scheme tends to be a boom benefitting the weaker section effectively and is expected to change their condition in the future
• Easy access to a pension and/or insurance products
• Transfers of funds can easily be done using normal mobile
• The PMJDY accounts are eligible for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Direct Benefit Transfer (DBT), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme

Eligibility to open an account under Jan Dhan Yojana

Below are the eligibility criteria that must be fulfilled by all individuals to open the PMJDY account:

1. An individual who holds the Indian nationality
2. An applicant should not have a bank account. However. an individual having a basic savings account can transfer or link its account to Jan Dhan accounts for availing various benefits offered by the scheme 
3. Applicants must be at least 10 years of age
4. A minor above 10 years of age are eligible to open an account but it must be having a guardian to operate the bank account. Minors can also use RuPay Cards through which they can withdraw money from ATMs
5. An individual having identity proof authorized by any gazetted officer is eligible to open an account under this scheme
6. One not having any valid documents to prove he/she is an Indian national can open an account once the bank does the ground research and clears the individual to be of “low risk”
7. Individuals who are paying income tax, along with them and their families cannot participate in this scheme
8. Subscribers of Aam Aadmi Bima Yojana aren't eligible to be members of PMJDY

Documents required to open an account under Jan Dhan Yojana

Following are some documents required to open a PMJDY account: 

• Filled and Signed PMJDY Account opening form
• Passport
• Driving license/PAN card/Aadhaar/Voter’s ID Card
• Job card issued by NREGA duly signed by an officer of the State Government, etc.
• Two passport size photographs 
• If you don't have a valid residential address, you then will be required to submit a valid identity proof issued by the government of India
• Identity card with a photo that been issued by the central or state government departments, public sector undertakings, scheduled commercial banks, public financial institutions and statutory or regulatory authorities
• A photograph that has been attested along with a letter from a Gazetted officer
• A letter that's issued by the Unique Identification Authority of India with the Name, Address and Aadhaar Number of the beneficiary

Do note that the Reserve Bank of India (RBI) has stated that the individuals who don't have any of the ‘officially valid documents’ can open “Small Accounts” with the banks. However, the “Small Account” can only be opened based on a self-attested photograph and by placing your signature or thumbprint in the presence of the bank officials. Moreover, for such accounts, the aggregate credits will be limited, not more than Rs 1 lakh a year and withdrawals will be limited as well, not more than Rs 10,000 in a month. Do note that at any point of time, the balance in the account should not cross Rs 50,000. Validity of such accounts will be just a year, and later on, they would be allowed to continue for a further period of twelve more months if the account holder provides a document proving that it has applied for any of the Officially Valid Document within 12 months of opening the small account.

How to Open a Pradhan Mantri Jan-Dhan Yojana account?

Follow the below steps to successfully open the PMJDY account:

• Get the application form, which is available in English and Hindi. The form is also available on the official website of PMJDY (https://www.pmjdy.gov.in/scheme)
• Fill up the form with all the applicant's KYC details
• Attach the required documents to the application form. Do remember that all the documents should be signed and attested by the applicant
• With the entire set of documents along with the letter visit the bank in which you desire to open the account
• Submit the documents to the person that has been appointed by the banks to assist applicants to get enrolled easily
• The account will be operational within a few working days 

Banks Offering PMJDY Account

The public and private sector banks that offer the facility of opening PMJDY accounts are listed below:

Private sector banks

• Axis Bank
• Yes Bank
• Karnataka Ltd. Bank
• Kotak Mahindra Bank Ltd.
• IndusInd Bank Ltd.
• Federal Bank Ltd.
• ICICI Bank
• HDFC Bank
• Dhanalaxmi Bank Ltd.
• ING Vysya Bank Ltd.
• IndusInd Bank Ltd.

Public Sector Banks

• Punjab National Bank (PNB)
• State Bank of India (SBI)
• Central Bank of India (CBI)
• Punjab & Sind Bank (PSB)
• Dena Bank
• Bank of Maharashtra (BOM)
• Bank of India (BOI)
• Bank of Baroda (BOB)
• Union Bank of India
• Vijaya Bank
• Indian Overseas Bank (IOB)
• Indian Bank
• Canara Bank
• Oriental Bank of Commerce (OBC)
• Allahabad Bank
• Syndicate Bank
• IDBI Bank
• Corporation Bank
• Andhra Bank

Conclusion

With regards to PMJDY, the government also anticipates channelling all government benefits (be it by local, state, or Centre body) to the beneficiaries accounts and providing the direct benefits transfer scheme of the union government to them. Technological issues like poor connectivity, online transactions will be handled effectively, too. Also, an urge to the youth is being made by the Government of India to actively participate in this mission for its success. The Jan Dhan Yojana has been rolling hot as on the inauguration day itself 1.5 crore people opened their bank accounts. With the launch of this scheme, those not having any other account were enabled to open a basic savings bank deposit (BSBD) account in any bank branch or Business Correspondent (Bank Mitra) outlet.