Pradhan Mantri Jan Dhan Yojana

​The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched on August 28, 2014, is a flagship financial inclusion initiative by the Government of India. Its primary aim is to provide affordable access to financial services such as banking, savings and deposit accounts, remittance, credit, insurance, and pensions to the unbanked population of the country.

Key Features of PMJDY:

• Bank Account for Everyone: PMJDY makes it easy for people without a bank account to open one and start using banking services.
• Direct Money from Government: Government benefits and subsidies are sent directly to your bank account, ensuring transparency and no delays.
• No Minimum Balance: You don’t need to keep any minimum amount in your account. It’s a zero-balance account.
• Easy Money Transfers: Send and receive money across India without any hassle.
• Free Insurance:
  • ₹1 lakh accident cover with a RuPay card
  • ₹2 lakh accident cover for accounts opened after 28 August 2018
  • ₹30,000 life insurance for eligible account holders
• Overdraft Facility:
  • Up to ₹10,000 available after 6 months of active account use
  • Helpful for emergency financial needs
• More Financial Services: Access to loans, pensions, and other financial products is available for account holders.

Benefits of PMJDY:

• Financial Inclusion: PMJDY has significantly contributed to bringing the unbanked population into the formal banking system, promoting financial literacy and inclusion.​
• Direct Benefit Transfer (DBT): The scheme facilitates the direct transfer of government subsidies and benefits to the beneficiaries' accounts, ensuring transparency and reducing leakages.
• Access to Credit and Insurance: Account holders gain easier access to credit facilities and insurance products, enhancing their financial security and enabling economic empowerment.

Progress and Impact:

As of recent reports, over 55 crore beneficiaries have been banked under PMJDY, with a total balance exceeding ₹2.6 lakh crore in their accounts. Additionally, approximately 13.55 lakh Bank Mitras are delivering branchless banking services across the country, furthering the reach of financial services.

How to Open a PMJDY Account:

To open a Jan Dhan Yojana account, you need to fill out an application form called the Financial Inclusion Account Opening Form. This form is available in both English and Hindi on the official PMJDY website: https://www.pmjdy.gov.in/scheme. The form has three sections where you need to provide your personal details, details of the nominee, and information about the bank where the account will be opened. After filling it out, submit the form along with the necessary documents.

Interest Rate Under PMJDY

The interest rate you earn on your PMJDY account depends on the interest rate offered by your bank for a regular savings account. Different banks may offer slightly different interest rates. So, the money you keep in your PMJDY account will earn interest just like a normal savings account, based on the bank’s own rates.

Documents Needed to Open a PMJDY Account

To open a Pradhan Mantri Jan Dhan Yojana (PMJDY) account, you need to give some valid identity proof. These documents help banks know who you are and ensure your account is safe.

Here are the documents you can submit:

• Passport – An official document used for travel and identity.
• PAN Card – A card that has your Permanent Account Number, mostly used for tax purposes.
• Aadhaar Card – A unique identity number given by the government with your biometric and demographic details.
• NREGA Job Card – A job card given under the National Rural Employment Guarantee Act.
• Driving Licence – A legal document allowing you to drive, and also accepted as ID proof.
• Voter ID – A card that lets you vote and serves as identity proof.
• Photo ID from Government Bodies – Any ID card with your photo issued by:
  • Central or State Government
  • Public Sector Companies
  • Commercial Banks
  • Financial Institutions
  • Regulatory Authorities
• Photo with a Letter from a Gazetted Officer – If you don’t have any ID, you can submit a photo along with a signed letter from a Gazetted officer as proof of identity.

Implementation of the Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana was launched to ensure that every family in India has access to banking facilities. It was introduced in three phases. In the first phase, from 15 August 2014 to 14 August 2015, the goal was to provide every household with at least one bank account. People received a RuPay debit card with accident insurance of ₹1 lakh, and financial literacy programs were conducted in villages. Kisan Credit Cards were also issued during this phase. The second phase, from 15 August 2015 to 14 August 2018, focused on supporting workers in the unorganised sector by providing them microinsurance and pension schemes like Swavalamban through Business Correspondents. In the third phase, which started on 14 August 2018 and is still ongoing, several benefits were added. The overdraft limit was increased from ₹5,000 to ₹10,000, and people can get up to ₹2,000 overdraft without any conditions. The age limit for overdraft eligibility was also raised from 60 to 65 years. For accounts opened after 28 August 2018, the accidental insurance on the RuPay card was increased from ₹1 lakh to ₹2 lakh.

Achievements of the PMJDY Scheme

Since its launch, the PMJDY scheme has achieved many significant milestones. The total deposit amount in PMJDY accounts has reached ₹1.31 lakh crore. In the first year alone, 17.90 crore accounts were opened. Between 2015 and 2020, the amount of money deposited in these accounts grew by 5.7 times, and the number of accounts increased by 2.3 times. Currently, there are 40.35 crore Jan Dhan accounts in total. Out of these, 63.6% are from rural areas and 55.2% are held by women. Around 34.81 crore of these accounts are active and regularly used. To make banking more accessible, a mobile app called Jan Dhan Darshak was also launched. This app helps people locate nearby banking facilities like ATMs, post offices, bank branches, and Bank Mitras.

PMJDY Updates in Interim Budget 2024

The Interim Budget of 2024 shared some important updates about the PMJDY scheme. A total of ₹34 lakh crore has been transferred to beneficiaries through Direct Benefit Transfers (DBTs) using Jan Dhan accounts. This move has saved the government around ₹27 lakh crore by reducing leakages and making payments more direct and efficient. The scheme has helped a large number of people, especially those from poor and rural areas, to open bank accounts at little or no cost. It has also made it easier for the government to transfer the benefits of various schemes straight to the bank accounts of the beneficiaries without the need for any middlemen.

FAQs on PMJDY 

• Where and how can I open a PMJDY account?
  You can open a PMJDY account at any bank offering the scheme or through Bank Mitrs. If you don’t have full documents, you can open a "Small Account" valid for 12 months and later submit documents to continue it.
• What documents are required to open an account?
  You can submit Aadhaar, Voter ID, PAN, Passport, Driving License, or NREGA card. If you have no documents, you can still open a Small Account for 12 months.
• Can I open a joint account?
  Yes, joint accounts are allowed under PMJDY.
• Can minors open an account?
  Yes. Children aged 10 years or above can open an account with a guardian. They can also get a RuPay card and use it up to 4 times a month.
• Is there any minimum balance required?
  No. PMJDY accounts are zero-balance accounts.
• Can I link my mobile number?
  Yes. You can ask your bank to link your mobile number to your PMJDY account.
• What is a RuPay card?
  It is a debit card for ATM withdrawals and shop payments. Even illiterate users can get one, and bank staff will explain how to use it. Use it at least once in 45 days to keep it active.
• What is a PoS machine?
  A device at shops that lets you pay using your RuPay card instead of cash.
• Can I get a cheque book?
  Only if you maintain the minimum balance required by the bank.
• Is mobile banking available?
  Yes. You can check your balance and transfer money using your phone, even basic ones.
• Is interest provided on savings?
  Yes. Usually around 4%, but it may vary by bank.
• Can I transfer my account to another place?
  Yes. You can transfer your account to another city or state easily through your bank.
• What is Bank Mitr?
  Local banking agents who offer services in areas without bank branches.
• Is life insurance included?
  Yes. The nominee gets ₹30,000 if the account holder dies. This benefit is not for income tax payers.
• Is accident insurance included?
  Yes. You get up to ₹1 lakh accident cover with your RuPay card.
• Will I get multiple insurance if I have more than one account?
  No. Only one account will be considered for insurance benefits.
• What is the loan/overdraft facility?
  After using your account for 6 months, you may get a ₹5,000 loan. If you repay on time, the bank may increase the limit. No processing fee is charged.
• What is the loan interest rate?
  Around 12%, or the bank’s base rate + 2%, whichever is lower.
• Can I renew my RuPay card?
  Yes. Check the expiry date on your card and ask for a new one before it expires.
• Can I change my address in the account?
  Yes. Submit a self-declaration or supporting documents to update your address.
• Do I need to pay fees to open an account?
  No. Opening a PMJDY account is completely free.
• What is the exit age of the scheme?
  The benefits are available until the age of 60.
• Do Bank Mitrs need to pay service tax?
  No. They are exempted from service tax under the PMJDY scheme.