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

With a dream of building a better India, India's prime minister Mr Narendra Modi has announced a new financial inclusion scheme called Pradhan Mantri Jan-Dhan Yojana (PMJDY) at the Red Fort on August 15, 2014 under which every family living in India must have a bank account.

It is a national mission to provide an easy access to financial services like banking, bank accounts, remittance, loans and credits, insurance, pension, etc. to poor and needy people of India in an affordable manner at national level. The key idea behind this scheme is to end the financial untouchability in India, with the opening of appox.1.5 crore bank accounts of 7.5 crore families in one year across India.

The scheme is particularly designed for those who have failed to get the benefits of various financial schemes being offered by the government of India.

Accounts which can be opened under PMJDY are Basic Savings Bank Deposit Accounts (BSBDA) which can be of zero balance.

Benefits of the Pradhan Mantri Jan Dhan Yojana (PMJDY)

• Each family will have a bank account opened in bank which is free of cost and zero balance (no need to maintain a minimum balance in the account).
• In this bank account they can save their earnings easily.
• Each family will be getting a RuPay debit card after opening of bank account to withdraw money from the account.
• Access to pension, credit and insurance products. and also on working Saturdays i.e. Saturdays other than 2nd & 4th Saturdays.
• Free accidental insurance cover of Rs. 1lakh.
• Free life cover of Rs. 30000/-.
• Interest on deposit.
• Easy Transfer of money across India.
• On keeping the bank account active and satisfactory operation of the account for 6 months, an overdraft limit of Rs 5000/- will be permitted in one account per family (preferably lady of the house).
• Account holder can check and transfer balance by using a normal cell phone.
• Direct Benefit Transfer to the accounts of the beneficiaries of government schemes.

According to official records, total 24.1 crore bank accounts have been opened till August 31, 2016 with an accumulated balance of Rs 42,094.24 crore.

About 19 crore of these accounts have been issued Rupay cards. More than 50% of total Jan Dhan accounts have the Aadhaar Card of the account holder linked to them making them eligible for all wage payments to NREGA workers through Direct Benefit Transfer and for direct subsidy payments of LPG.

Accounts with no balance in them were 76.81% of the total accounts opened under this scheme as on September 30, 2015 which have come down to only about 32% at the end of December, 2015.

List of banks who offer Pradhan Mantri Jan Dhan Yojana (PMJDY)

What are the Impacts of Pradhan Mantri Jan-Dhan Yojana?

• People from weaker sections and low income groups get insured.
• Loans and other credits can be extended to weaker sections which otherwise could not have been.
• Financial literacy with universal access to banking facilities is increased among such people.
• Free life and insurance cover has been extended to the account holders.
• Easy access to pension.

Documents Required to Open Pradhan Mantri Jan-Dhan Yojana Account

1. If Aadhaar Card/Aadhaar Number is available then no other documents is required.
2. If Aadhaar Card is not available, then any one of the following documents is required:
   • Voter ID Card
   • Driving Licence
   • PAN Card
   • Passport
   • NREGA Card
3. If none of the above documents is available then any one of the following documents but the account will be opened as "low risk" by the banks:
   • Identity Card with applicant's photograph issued by Central/ State Government Departments, Statutory/ Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions
   • Letter issued by a gazette officer, with a duly attested photograph of the person

It is to be noted that a minor of above the age of 10 years can open his/ her savings bank account under PMJDY in any bank. People can avail nomination facility at the time of account opening.