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Pradhan Mantri Jan-Dhan Yojana (PMJDY): All You Need to Know Research Team | Posted On Wednesday, September 11,2019, 07:43 PM

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Pradhan Mantri Jan-Dhan Yojana (PMJDY): All You Need to Know



Arun Jaitley, who was the Finance Minister during the first term of the Modi-led government, once said, ‘The country intends to make use of bank accounts opened under Pradhan Mantri Jan-Dhan Yojana (PMJDY) to extend credit facilities, pension and insurance to those who have been excluded from these key financial services.’

Mint had organized an annual banking conclave in February 2015. Here is what a penal of experts had to say about PMJDY. ‘Of course, PMJDY has assisted a majority of poor people in India to open bank accounts, but the scheme is yet to deliver several initiatives related financial inclusion.’ The panel had consisted of the senior officials from the financial inclusion space and the banking sector.

What is Pradhan Mantri Jan-Dhan Yojana?

 PMJDY is primarily a financial inclusion program launched by the Government of India on 28 August 2014 by the Prime Minister of India Narendra Modi. The scheme was unveiled by him on his first Independence Speech on the 15th of August 2014. The program is being run by the Department of Financial Services.

Over 15 million bank accounts were opened under this popular scheme on its inaugural day. The scheme applies to the Indian citizens falling in the age group of 20 to 65 years. The mission of PMJDY is to help the poor to get access to financial services majorly in the areas of insurance, pension, banking, credit and remittance.

See Also: PMJDY-Pradhan Manthri Jan Dhan Yojana?

PMJDY is Offered By Whom?

Under this scheme, people may open a bank account with any business correspondent outlet or bank branch. They do not have to maintain any bank balance (zero-balance accounts). But, people willing to get a cheque book are required to maintain the minimum bank balance prescribed by the concerned bank. RuPay debit cards shall be issued to account holders under the initiative. Such cards may be used to across all ATMs in India to withdraw cash.

Revised Changes in the Scheme with Effect from 28 August 2018

  • The Over Draft limit has been extended to Rs.10,000 from Rs.5,000.
  • No conditions are required to be met for active PMJDY accounts availing OD up to Rs.2,000.
  • The age limit for availing OD facilities has been extended to 18-65 years from 18-60 years.
  • For new RuPay debit cardholders, the accident insurance cover has been revised to Rs.2 lakh from Rs.1 lakh.

Administrative Structure

  • Rajiv Kumar – Secretary (FS)
  • Debasish Panda – Additional Secretary
  • Bhushan Kumar Sinha – Joint Secretary (FI)            
  • Anindita Sinharay – Director (FI)
  • Ashok Kumar Dogra – Deputy Secretary

Documents Required to Open Bank Accounts Under PMJDY

  • Passport, driving license
  • PAN card, voter’s ID card granted by the Election Commission of India
  • Job card issued by the National Rural Employment Guarantee Act (NREGA) duly signed by an officer from the State Government
  • Letter issued by the Unique Identification Authority of India
  • Any other document(s) notified by the Government of India

In its Press Release issued by the Reserve Bank of India, also known as the Central Bank of India, it had clearly mentioned that people still open ‘Small Accounts’ even though they do not have any documents listed above. Such accounts come with certain restrictions. For example, aggregate credits should not exceed Rs.1 lakh per year. No aggregate withdrawals are allowed beyond Rs.10,000 per month. The bank balance should not exceed Rs.50,000 (at any point in time).

See Also: Withdrawal from PMJDY Bank Account                                                      

Key Benefits of the Scheme

  • Zero balance accounts
  • Account holders will get an accidental insurance cover of Rs.2 lakh.
  • Deposits will attract a certain interest rate.
  • The beneficial nominee shall get a life cover of Rs.30,000 on the death of the account holder.
  • Funds can be easily transferred across India.
  • Account holders are entitled to avail an OD facility after 6 months from the account opening date.*
  • Beneficiaries have access to insurance products and pension under the scheme.
  • OD facilities are allowed up to Rs.10,000 per account per household.
  • Rupay cardholders have to perform at least one financial transaction at ATMs, bank branches, POS (Point of Sales) or e-Com.

How Does PMJDY Work?

The Government of India had decided to implement the PMJDY scheme in 2 phases. The first phase had started on 15 August 2014 and closed on 14 August 2015, whereas the second phase had begun on 15 August 2015 and closed on 14 August 2014. Within these two phases, the Government of India had implemented several people-friendly initiatives such as financial literacy programs at the rural level, issuance of Kisan Credit Cards, Swavlamban, etc.

Banks Providing PMJDY

Both public and private sector banks allow people to open bank accounts under the scheme. The public sector banks encompass Union Bank, Syndicate Bank, Punjab National Bank, State Bank of India, Punjab and Sindh Bank, Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, IDBA Banks, Corporation Bank and others. The private sector banks include Yes Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Federal Bank, Dhanlaxmi Bank and others.


1. How does PMJDY differ from Swabhimaan?

PMJDY differs from Swabhimaan, which was the earlier financial inclusion plan, in terms of scope and coverage. It mainly focuses on both urban and rural areas across the country, while the previous plan just focused on villages with a population of over 2,000.

2. Can I open a joint account under this scheme?

Yes, people are allowed to open a joint account.

3. What is a RuPay Debit Card?

A Rupay Debit Card is a domestic debit card introduced by the National Payment Corporation of India (NPCI). The card can be used at all ATMs throughout the country for cash withdrawals.

4. Can uneducated people get a RuPay Debit Card?

Banks issue RuPay Debit Cards to illiterate people. They will explain everything related to such cards before issuing them.

5. How long my Rupay Debit Card is valid?

This is a common question among the users of Rupay Debit. The expiry date is mentioned on the card. Be sure to get a new prior to the expiry date.

6. Can a minor open a bank account under the scheme?

The minors who have attained the age of 10 years are allowed to open a bank account. This is the biggest benefit of the scheme.

See Also: Pradhan Mantri Fasal Bima Yojana

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