The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a groundbreaking financial inclusion initiative launched by the Government of India. Initiated in August 2014 by Prime Minister Narendra Modi, the scheme aims to provide universal access to banking services for every unbanked household in the country. PMJDY operates on the principles of banking the unbanked, securing the unsecured, funding the unfunded, and serving the underserved. This scheme has been pivotal in ensuring that every citizen has the opportunity to participate in the formal financial system, thereby promoting financial literacy and inclusion.
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Objectives and Expansion
Initially, the primary objective of PMJDY was to ensure that every household in India had access to a bank account. However, in order to further the government’s financial inclusion initiatives, the scheme was extended beyond August 14, 2018, with a renewed focus on opening accounts for every unbanked adult rather than just every household. This strategic shift aims to deepen the penetration of banking services and ensure that more individuals are brought into the fold of formal financial services.
To make the scheme more attractive and beneficial for the citizens, several enhancements were made:
- Overdraft Limit: The overdraft limit was increased from Rs. 5,000 to Rs. 10,000.
- Accidental Insurance Cover: The insurance cover on RuPay debit cardholders was doubled from Rs. 1 lakh to Rs. 2 lakhs for accounts opened after August 28, 2018.
These enhancements have made PMJDY not only a tool for financial inclusion but also a safety net for many individuals, providing them with much-needed financial security.
Banking Services Provided
Under PMJDY, a plethora of banking services are offered to ensure comprehensive financial inclusion:
- Basic Savings Bank Deposit Account (BSBDA): Any Indian citizen can open a BSBDA, which does not require any minimum balance. Account holders can use bank branches, ATMs, and Banking Correspondents (BCs) for transactions, although there is a limit of four withdrawals per month.
- Small Account/Chota Khata: Individuals can open small accounts without presenting legal documents. These accounts are initially valid for 12 months and can be extended for another 12 months if the account holder provides proof of applying for an Officially Valid Document within the first year.
- RuPay Debit Card: Beneficiaries receive a free RuPay debit card with an inbuilt accidental insurance cover of Rs. 2 lakhs.
- Overdraft Facility: Beneficiaries can avail of an overdraft facility up to Rs. 10,000.
- Business Correspondents (BCs)/Bank Mitras: These are retail agents engaged by banks to provide banking services in locations other than bank branches or ATMs, particularly in rural areas. They offer services such as opening savings accounts, deposits, withdrawals, and mini account statements.
Eligibility Criteria
To benefit from the PMJDY scheme, applicants must meet the following eligibility criteria:
- Nationality: The applicant must be an Indian citizen.
- Minors: Minors above the age of ten can open an account with the support of their legal guardians.
Application Process
The application process for PMJDY can be done offline, ensuring that it is accessible even to those without internet access. Here is a step-by-step guide:
- Visit the Official Portal: Go to the official PMJDY portal.
- Download the Form: Under the “e-documents” section, find the “Account Opening Form” in either English or Hindi, download and print it.
- Fill the Form: Complete the form with personal and bank details, including Aadhaar number, profession, annual income, Kisan credit card details, etc.
- Submit the Form: Visit the nearest bank branch and submit the filled form along with required documents.
Documents Required
Applicants need to provide the following documents:
- Aadhaar Card
- Government ID proofs (Voter ID, PAN Card, Ration Card)
- Permanent Address proof (Passport, Driving License, Electricity Bill, Telephone Bill, Water Bill)
- Passport size photograph
- Filled and signed PMJDY account opening form
- Any other document as notified by the Central Government in consultation with the Regulator.
Impact of PMJDY
Since its inception, PMJDY has been instrumental in increasing banking penetration and promoting financial inclusion across the country. It has ensured that millions of previously excluded individuals now have access to various financial services such as savings accounts, credit, remittances, insurance, and pensions. This access has empowered weaker sections and low-income groups, providing them with the tools to improve their financial stability and overall quality of life.
Detailed Info:
The Pradhan Mantri Jan Dhan Yojana (PMJDY) stands as a monumental effort by the Government of India to ensure that every citizen has access to the formal financial system. Launched in August 2014, this National Mission for Financial Inclusion (NMFI) has aimed to bring banking services to the unbanked, secure financial resources for the unsecured, and provide funding to the unfunded. The extension of the scheme beyond August 14, 2018, with a shift in focus from every household to every unbanked adult, marks a significant step in deepening financial inclusion across the nation.
The enhancements made to the scheme, such as increasing the overdraft limit from Rs. 5,000 to Rs. 10,000 and doubling the accidental insurance cover on RuPay cardholders from Rs. 1 lakh to Rs. 2 lakhs, have made PMJDY even more beneficial for the citizens. These measures have provided an added layer of financial security and support to the beneficiaries, ensuring that they have the necessary resources to manage their financial needs effectively.
One of the most significant aspects of PMJDY is the provision of a Basic Savings Bank Deposit Account (BSBDA) that does not require a minimum balance. This feature has made banking accessible to millions of individuals who were previously excluded from the formal financial system due to the requirement of maintaining a minimum balance. Additionally, the introduction of Small Accounts or Chota Khatas has allowed individuals to open bank accounts without presenting legal documents, further simplifying the process and broadening access.
The provision of a RuPay debit card with inbuilt accidental insurance cover has added a crucial layer of security for the beneficiaries. This feature ensures that in the event of an accident, the account holder’s family has financial support to manage unforeseen expenses. The overdraft facility, which allows beneficiaries to avail of up to Rs. 10,000, provides a safety net for individuals to manage short-term financial needs without falling into the trap of high-interest loans from informal sources.
The role of Business Correspondents (BCs) and Bank Mitras in the success of PMJDY cannot be overstated. These retail agents have been pivotal in bringing banking services to remote and rural areas where bank branches are often far-flung. By providing services such as savings accounts, deposits, withdrawals, and mini account statements, BCs and Bank Mitras have ensured that individuals in even the most remote locations have access to banking services.
The eligibility criteria for PMJDY are straightforward, ensuring that the benefits of the scheme are accessible to a wide range of individuals. Indian citizens, including minors above ten years with the support of their legal guardians, can open PMJDY accounts. The application process, which can be completed offline, is designed to be user-friendly and accessible, ensuring that individuals without internet access can still benefit from the scheme.
The impact of PMJDY on financial inclusion in India has been profound. By providing millions of previously excluded individuals with access to savings accounts, credit, remittances, insurance, and pensions, the scheme has empowered weaker sections and low-income groups. This access has enabled these individuals to improve their financial stability, manage their resources more effectively, and ultimately enhance their quality of life.
In summary, Pradhan Mantri Jan Dhan Yojana (PMJDY) is a revolutionary scheme that has played a pivotal role in promoting financial inclusion in India. Its comprehensive benefits, user-friendly application process, and the support of Business Correspondents and Bank Mitras have ensured that every citizen, irrespective of their socio-economic status, has access to essential banking services. Through PMJDY, the Government of India has made significant strides in creating an inclusive financial ecosystem that empowers every individual to participate in the nation’s economic growth and development.
Did you know that under the PM Jan-Dhan Yojana (PMJDY), the government is providing a benefit of ₹10,000 to Jan Dhan account holders? This scheme was launched specifically for the economically weaker sections of society to provide financial assistance.
If you haven’t yet opened an account under this scheme, now is the time to take advantage of it. The PM Jan-Dhan Yojana has completed nine years and has proven to be a significant help for many.
PM Jan-Dhan Yojana ₹10,000 Benefit
Under the PM Jan-Dhan Yojana, all rural citizens of India receive special benefits. Banks set up camps in rural areas to inform people about banking services. Through these camps, rural citizens can open a Jan Dhan account without any charges. Initially, the government deposits ₹1000 in these accounts to help citizens connect with the banking system.
20% of Jan Dhan Accounts are Inactive Recently, MP Jayant Chaudhary inquired about the inactive accounts under the PM Jan-Dhan Yojana. The Minister of State for Finance responded that as of December 6, 2023, out of 51.11 crore accounts opened under the PMJDY, around 20%, or 10.34 crore accounts, are inactive.
PM Jan-Dhan Yojana Update: ₹12,779 Crore Deposited in Non-Operative Accounts The Minister of State for Finance, Bhagwat Karad, reported that as of December 6, 2023, there are 10.23 crore non-active bank accounts under the PMJDY, with 4.93 crore accounts in women’s names. These non-active accounts hold a total of ₹12,779 crore, constituting 6.12% of the total deposits under the scheme. Interest is earned on non-active accounts just like active ones, and account holders can withdraw money at any time.
Reduction in Non-Operative Accounts Over 7 Years
The Minister of State for Finance noted that efforts are continuously being made to reduce the number of inactive accounts, and the government is closely monitoring this. Under the PMJDY, banks conduct local camps to inform people about the benefits of keeping their accounts active. This initiative has reduced the number of inactive bank accounts from 40% in March 2017 to 20%.
PM Jan-Dhan Yojana Account Opening Online Here’s how to open an account under the PM Jan-Dhan Yojana:
- Select a Bank or Camp: Visit a nearby bank or a camp organized under the PM Jan-Dhan Yojana.
- Obtain the Form: Request the account opening form.
- Fill the Form: Complete the form with the required information.
- Attach Documents: Attach the necessary documents to the form.
- Submit the Form: Submit the form and documents to a bank officer.
- Account Opening: Your Jan Dhan account will be opened, and you will receive confirmation via SMS.
PM Jan-Dhan Yojana FAQ’s
Frequently Asked Questions (FAQs)
- What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?
- PMJDY is a National Mission for Financial Inclusion launched by the Government of India in August 2014 to provide universal access to banking services for every unbanked household and adult.
- What are the benefits of PMJDY?
- The benefits include opening a Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirement, access to a RuPay debit card with accidental insurance cover, and an overdraft facility of up to Rs. 10,000.
- Who is eligible to open a PMJDY account?
- Any Indian citizen, including minors above ten years with the support of their legal guardians, is eligible to open a PMJDY account.
- What documents are required to open a PMJDY account?
- Required documents include Aadhaar Card, Government ID proofs (Voter ID, PAN Card, Ration Card), Permanent Address proof (Passport, Driving License, Electricity Bill), passport size photograph, and a filled PMJDY account opening form.
- What is the overdraft facility under PMJDY?
- Beneficiaries of PMJDY can avail of an overdraft facility up to Rs. 10,000, providing a financial safety net for short-term needs.
- How does the RuPay debit card benefit PMJDY account holders?
- The RuPay debit card provided under PMJDY comes with an inbuilt accidental insurance cover of Rs. 2 lakhs, offering financial protection in case of accidents.
- What is the role of Business Correspondents (BCs) and Bank Mitras in PMJDY?
- BCs and Bank Mitras are retail agents who provide banking services in remote and rural areas, ensuring that even individuals in far-flung locations have access to banking services.
- How can I apply for a PMJDY account?
- Applicants can download the account opening form from the official PMJDY portal, fill it out with the required details, and submit it along with necessary documents at their nearest bank branch.
- What is a Small Account or Chota Khata under PMJDY?
- A Small Account or Chota Khata allows individuals to open bank accounts without presenting legal documents. These accounts are initially valid for 12 months and can be extended for another 12 months with proof of applying for an Officially Valid Document.
- How has PMJDY impacted financial inclusion in India?
- PMJDY has significantly increased banking penetration, providing millions of previously excluded individuals with access to savings accounts, credit, remittances, insurance, and pensions, thereby empowering weaker sections and low-income groups.
PM Jan-Dhan Account Opening Online Official Website: www.pmjdy.gov.in
Conclusion
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a testament to the Government of India’s commitment to ensuring that every citizen has access to the formal financial system. The scheme’s focus on banking the unbanked, securing the unsecured, and funding the unfunded has made it a cornerstone of the nation’s financial inclusion strategy. The enhancements and benefits provided under PMJDY have made it an invaluable tool for millions of individuals, empowering them to manage their financial needs and improve their overall quality of life. The success of PMJDY serves as a model for other countries seeking to promote financial inclusion and ensure that every citizen has the opportunity to participate in the formal financial system.