Pradhan Mantri Jan Dhan Yojana (PMJDY) : Eligibility,Advantages,Bank Details,Procedure To Apply

Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (PMJDY) In his Independence Day address on August 15, 2014, the Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion, with the goal of ensuring comprehensive financial inclusion of all households in the country by providing universal access to banking facilities with at least one basic bank account for every household, financial literacy, access to credit, insurance, and pension facilities. A person who does not have a savings account may open one without any minimum balance requirement, and they may open a small account if they self-certify that they do not have any of the officially valid documents required for opening a savings account. Furthermore, all of the country’s over 6 lakh villages were mapped into 1.59 lakh Sub Service Areas (SSAs), with each SSA typically consisting of 1,000 to 1,500 households, and Bank Mitras were deployed for branchless banking in the 1.26 lakh Sentiment analysis that did not have a bank branch.

BSBDA (Basic Savings Bank Deposit Account)

Features include:

  • The minimum balance requirement does not apply to this account.
  • In PMJDY accounts, deposits earn interest.
  • Deposit and withdrawal of cash at bank branches and ATMs; receipt / credit of money via electronic payment channels or deposit/collection of cheques drawn by Central/State
  • Government agencies and departments are among the services available in the account.
  • There is no limit to the number of deposits that can be made in a month, but the maximum number of withdrawals from the account, including ATM withdrawals, is limited to four.
  • All PMJDY account holders have access to the RuPay Debit Card service. Accident cover of Rs.1 lakh (enhanced to Rs.2 lakh for new PMJDY accounts opened after 28.08.2018) is available with the PMJDY account holder’s RuPay card.
  • The aforementioned services are free of charge. There will be no fee for not operating or activating an existing Basic Saving Bank Deposit Account.
  • All existing no frills accounts under the SBFRL/SBNFL/SBZER schemes are convertible to the BSBDA scheme.
  • There is a nomination option available.

Small Savings Bank Deposit Accounts (BSBDS)

Highlights include:

  • To achieve the goal of Universal Financial Inclusion and to reduce the inconvenience for prospective last mile customers, the RBI has issued guidelines on the opening of saving bank accounts for people with limited means and migratory workers (who typically do not have proof of residence at their place of employment) with relaxed KYC requirements, known as
  • Small Accounts under the Prevention of Money Laundering Rules.
  • Small accounts can be opened without the need for documentary proof of identity and address.
  • According to a notification issued by the Government of India on December 16, 2010, BSBDA –
  • Small Accounts are subject to the following conditions:
  • In any given year, the total credit in such accounts should not exceed Rs. 100000/-.
  • At no time should the account’s balance exceed Rs. 50000/-.
  • The total debits from cash withdrawals and transfers in a month will not exceed Rs.10000/-.
  • Foreign remittances cannot be credited to Small Accounts unless the normal KYC procedures are followed.
  • Small accounts are valid for 12 months and can be extended for another 12 months if the account holder provides documentation proving that he or she applied for any of the Officially Valid Documents.
  • Conversion of BSBDS accounts to regular BSBDA/SB accounts through the acquisition of KYC documents within one year is also required so that account holders are not denied banking services due to a lack of KYC documents.

Bank Type Details:

Bank Type Number of Beneficiaries Deposits in Accounts Number of RuPay Cards
Rural/SemiUrban Urban Female Total
Public Sector Banks 22.84 13.61 20.09 36.45 ₹133,815.32 27.44
Regional Rural Banks 7.39 1.16 4.93 8.54 ₹34,156.99 3.41
Private Sector Banks 0.70 0.60 0.71 1.31 ₹4,876.18 1.11
Total 30.93 15.37 25.73 46.30 ₹172,848.48 31.95

Eligibility requirements for starting a Pradhan Mantri Jan Dhan Yojana

Under the following conditions, a Pradhan Mantri Jan Dhan Yojana account can be opened:

  • Individuals with Indian nationality can successfully open a Jan Dhan Yojana account.
  • Individuals who do not have valid documents proving their Indian nationality can open a Jan Dhan Yojana account if the bank conducts the necessary background checks and classifies them as ‘low risk.’
  • Minors over the age of ten are also eligible to open a Jan Dhan Yojana account in any bank in the country. Minors, on the other hand, will need the help of guardians to manage their Jan Dhan accounts. Minors can also use RuPay Cards to withdraw money from ATM machines.
  • Individuals who already have a basic savings account with a bank can easily transfer or link their accounts to Jan Dhan Yojana accounts to take advantage of the latter’s various benefits.
  • Individuals who can submit any form of identity proof that is duly authorised by gazette officers can open a Jan Dhan Yojana account.

The advantages of the PMJDY scheme

The following are the main advantages of the PMJDY scheme:

  • Deposits made into the scheme’s savings account are eligible for interest.
  • Individuals are not required to keep a minimum balance under the scheme. However, if they wish to use cheques, a minimum balance must be maintained.
  • An overdraft facility is provided if individuals keep the account in good standing for 6 months.
  • Under the RuPay scheme, individuals receive Accidental Insurance coverage of Rs.1 lakh.
  • If the account was opened between 20 August 2014 and 31 January 2015, a life cover of Rs.30,000 is provided in the event that the beneficiary dies.
  • Insurance products and pension access are made available through the scheme.
  • Direct Benefit Transfer is an option for individuals who are beneficiaries of government schemes.
  • One account in the household has an overdraft facility of Rs.5,000. The lady of the house is usually provided with this service.
  • Only after the RuPay Card holder has completed a successful non-financial or financial transaction can the Personal Accident cover be claimed. Under the scheme, transactions made within 90 days of the accident are considered PMJDY eligible. However, the transaction must be completed at an E-COM, POS, ATM, Bank Mitra, bank branch, or other location.
  • Account holders can use mobile banking to check their balance.

Documents required to open a Pradhan Mantri Jan-Dhan Yojana account

By presenting an officially valid document, an account can be opened.

  • the travel document
  • the driver’s licence
  • the PAN (Permanent Account Number) Card
  • the Election Commission of India’s Voter Identity Card
  • NREGA issued job card duly signed by a State Government officer
  • the letter from the Unique Identification Authority of India containing information such as name, address, and Aadhaar number
  • any other document specified by the Central Government after consultation with the Regulator:
  • Provided, however, that when simplified measures are used to verify the identity of the clients, the following documents are deemed to be officially valid.
  • Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions issue identity cards with applicant’s photograph.
  • A letter issued by a Gazetted officer, accompanied by a duly attested photograph of the individual.

Opening a Pradhan Mantri Jan Dhan Yojana Account

A completed Pradhan Mantri Jan Dhan Yojana form must be submitted to the bank where you are opening an account. All participating banks will typically have a Jan Dhan Yojana dedicated desk where you will be assisted by Jan Dhan Professionals known as Bank Mitr who will assist you with the form submission and account opening procedure in order to obtain a Pradhan Mantri Jan Dhan Yojana Account. Account opening forms must be submitted along with ID proofs such as identity and address proofs. Applicants with a valid Aadhar number, on the other hand, will not be required to submit any additional documentation. In addition, two passport-sized photographs must be provided to the bank at the time of account opening.

When the documents are submitted, the account will be opened within a few working days, and the applicant will be given a passbook, a cheque book, an RUPay Debit card, and, in some cases, a Jan Dhan Yojana Information kit by the bank.

1)What exactly is the Jan Dhan Yojana scheme?
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a National Mission for Financial Inclusion that aims to provide affordable access to financial services such as basic savings and deposit accounts, remittance, credit, insurance, and pension.

2)Who qualifies for the Jan Dhan Yojana scheme?
The individual should normally be the family’s head or an earning member of the family, and should be between the ages of 18 and 59.

3)What are the advantages of a Jan Dhan account?
The Pradhan Mantri Jan Dhan Yojana provides several benefits, including debit card and cheque book facilities, personal accident and life insurance coverage, zero balance account, mobile banking facility, overdraft facility, and many more.