Indialends, 27 Jul 2023

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Pradhan Mantri Jan Dhan Yojana

What’s Inside This Blog?

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It is a government scheme launched to provide easy access to financial services to those who are not having any bank account. The main services that are part of this scheme are insurance, pension, savings and deposits account, remittance to the needy and poor section of our society. This scheme came into existence in August 2014. As per the Ministry of Finance around 4 crores, bank accounts are opened till September 2014.

Features of scheme

• No minimum balance to be maintained
• As per the bank’s saving’s account interest rate
• The simple money transfer process
• Overdraft facility is available

Rate of interest under PMJDY

Based on the savings account interest rate offered by the bank.

Eligibility criteria of Pradhan Mantri Jan Dhan Yojana Scheme

• You must be a resident of India
• The minimum age to open an account is 10 years
• You should not have a bank account

Documents required to open PMJDY account

In case individuals are willing to open an account, viable documents are required to be submitted. The list of documents required for the PMJDY account under the scheme are mentioned below:

• Passport
• PAN details 
• Aadhaar Card copy
• The National Rural Employment Guarantee Act (NREGA) issued a job card.
• Driving license
• Voter ID Card
• Identity card with a photo that has been issued by the central or state government departments, public sector undertakings, scheduled commercial banks, public financial institutions, and statutory or regulatory authorities.
• An attested photograph along with a letter from a Gazetted officer required to be submitted

Benefits of Pradhan Mantri Jan Dhan Yojana Scheme

• The interest rate is offered on the deposits made in the Jan Dhan Yojana account.
• There is no minimum balance required to maintain under this scheme. Only, if they want to avail of cheque facilities, then it is required.
• Overdraft facility is also given to those who maintain the account in a good way for at least 6 months.
• The individual receives an accidental insurance cover of Rs 1 Lakh under the RuPay scheme.
• In case the account was opened between 20 August 2014 and 31 January 2015, a life cover of Rs.30,000 is provided in case the beneficiary passes away.
• Under the scheme, pension access and insurance products are also offered.
• The direct benefit transfer facility is also available in Jan Dhan accounts.
• An overdraft facility of Rs.5,000 is provided to one account in the household. The facility is usually provided to the lady in the house.
• The Personal Accident cover is claimed only after the RuPay Cardholder has made a successful non-financial or financial transaction. Transactions that take place within 90 days of the accident are considered to be PMJDY eligible transactions under the scheme. However, the transaction must be made at an E-COM, POS, ATM, Bank Mitra, bank branch, etc.
• Account-holders can check their balance using the mobile banking facility.
• Pradhan Mantri Jan Dhan Yojana might prove instrumental in reducing the dependency of farmers on local money lenders. This is one of the major reasons for farmers getting debt trapped. Loan and overdraft facility linked with this account makes it possible for farmers to avoid borrowing from small money lenders who have no formal account-keeping processes and are known to indulge in fraudulent transactions to extract higher payments from borrowers.

The procedure to open a Jan Dhan Yojana account

•  To create a Jan Dhan Yojana Account, you can download the application form in PDF format from the website of https://pmjdy.gov.in/
• After downloading the form, fill it with attaching the required documents and submit the same to the nearest banks.
• The application form is also called the financial inclusion account opening form. There are three sections in the form that you are required to provide details like yourself, nominee, and bank where you are willing to open the Jan Dhan account.
  
• Usually, all participating banks will have a Jan Dhan Yojana dedicated desk where you will be helped by Jan Dhan Professionals called Bank representatives who will help you with the form submission and account opening procedure in order to obtain Pradhan Mantri Jan Dhan Yojana Account.

Banks that provide the PMJDY scheme

Individuals can open an account under the PMJDY scheme at both public and private sector banks. Given below are the list of banks that participate in the scheme:

Private Sector Banks:

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

Public Sector Banks

• Oriental Bank of Commerce (OBC)
• Union Bank of India
• Allahabad Bank
• Dena Bank
• Syndicate Bank
• Punjab & Sind Bank
• Vijaya Bank
• Central Bank of India
• Punjab National Bank (PNB)
• Indian Bank
• IDBI Bank
• Corporation Bank
• Canara Bank
• Bank of India (BoI)
• Bank of Maharashtra
• Andhra Bank
• Bank of Baroda (BoB)
• State Bank of India (SBI)

What are the loan benefits under Pradhan Mantri Jan Dhan Yojana Account?

The individual whose Jan Dhan Yojana account completes 6 months duration get the eligibility to apply for a loan up to Rs 5000. Although the loan amount seems insignificant as compared to that offered as standard loan in banks and other financial institutions. But it is substantial in those cases where the economic status of individuals needs uplifting. The Pradhan Mantri Jan Dhan Yojana is aimed at the financial inclusion of the economically weaker section of the society. Most importantly it aims to cover people from the rural areas as well as the unorganized sector of the urban and semi-urban areas.

How to avail of mobile banking under the Pradhan Mantri Jan Dhan Yojana scheme?

It is one of the important features of Pradhan Mantri Jan Dhan Yojana. It makes it easier for account holders to transfer money from their phones and withdraw money without an ATM card. This feature will help achieve the objective of financial inclusion and provide financial security to many. 

How to withdraw funds from Jan Dhan Account

Under the Pradhan Mantri Jan Dhan Yojana scheme, an account holder can withdraw funds from the Jan Dhan Yojana account using a RuPay Debit Card. It is a kind of Debit Card using which one can withdraw the funds at the time of need.

The withdrawal limit for a bank account opened under PMJDY is Rs. 10,000 per month. The account holder can deposit a maximum amount of Rs. 1 lakh in this account.

Conclusion

The main objective of the government of India for launching this account is to make every single citizen of India financially stable, secure, and self-sufficient. Therefore, by providing them with the facility of bank account through this scheme, the government of India wants to improvise the economic condition of every individual and the country in general.