Pradhan Mantri Jan Dhan Yojana (PMJDY) – Full analysis with eligiblity, benifits & other information

Pradhan Mantri Jan Dhan Yojana
(PMJDY) – Full Details

About Pradhan Mantri Jan Dhan Yojana

The scheme was launched in August 2014, and according to the Ministry of Finance, over 4 crore banks accounts have been opened till September 2014. Under the PMJDY scheme, some of the financial services that are offered to individuals are pension, insurance, and banking.

Pradhan Mantri Jan-Dhan Yojana is a government scheme launched by the government of India to provide easy access to financial services such as Remittance, Credit, Insurance, Pension, Savings and Deposit Accounts to poor and needy section of our society. Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, a basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.

The scheme was launched based upon the following 6 pillars:

• Universal access to banking services  – Branch and BC
• Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every eligible adult
• Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
• Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
• Insurance – Accident cover up to Rs. 1,00,000 and life cover of   Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
• Pension scheme for Unorganized sector

APMJDY Information

The Indian Government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) in order to provide financial services and products to individuals who do not have access to a bank account.

• No minimum balance to be maintained
• As per bank’s saving’s account interest rate
• Transfer of money is simple
• Overdraft facility available
  

PMJDY Eligibility

In order for individuals to open a PMJDY account, the below given criteria must be met:

• You must be citizen of India
• You should be at least 10 years of age
• You should not have a bank account

Benefits under PMJDY

• One basic savings bank account is opened for unbanked person.
• There is no requirement to maintain any minimum balance in PMJDY accounts.
• Interest is earned on the deposit in PMJDY accounts.
• Rupay Debit card is provided to PMJDY account holder.
• Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
• An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
• PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

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)

Impact of PMJDY

PMJDY has been the foundation stone for people-centric economic initiatives. Whether it is direct benefit transfers, COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, life and health insurance cover, the first step of all these initiatives is to provide every adult with a bank account, which PMJDY has nearly completed. 

One in 2 accounts opened between Mar’14 to Mar’20 was a PMJDY account. Within 10 days of nationwide lockdown more than about 20 crore women PMJDY accounts were credited with ex-gratia.

Jandhan provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders. PMJDY has brought the unbanked into the banking system, expanded the financial architecture of India and brought financial inclusion to almost every adult.

In today’s COVID-19 times, we have witnessed the remarkable swiftness and seamlessness with which Direct Benefit Transfer (DBTs) have empowered and provided financial security to the vulnerable sections of society. An important aspect is that DBTs via PM Jan Dhan accounts have ensured every rupee reaches its intended beneficiary and preventing systemic leakage. 

Source – PIB & Others