Pradhan Mantri Jan Dhan Yojana and Its Success

The PMJDY or Pradhan Mantri Jan Dhan Yojana, a financial inclusion scheme, was launched by PM Narendra Modi on August 28^th 2014. This scheme has helped the poorer sections of society. The scheme enables account ownership as well as facilitates financial inclusion across the country. With this account, a large number of people got access to the formal banking system and can open a zero balance savings bank account.

The recent data released by the World Bank Global Findex data show that almost 80% of Indian adults have bank accounts after the PMJDY scheme. According to the progress report of PMJDY, the scheme encompasses over 32 Crore beneficiaries. More than 31.20 crores accounts have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY), and of these, 25.18 Crore (81%) Jan Dhan accounts are operative.

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Pradhan Mantri Jan Dhan Yojana and Its Success​

What are the salient features of the PMJDY scheme?

Some of the salient features of the Pradhan Mantri Jan Dhan Yojana are as follows:

• All households across India, both rural and urban, are covered under the PMJDY scheme provided the beneficiaries are BPL cardholders. The PMJDY scheme targets the opening of 6 crore bank accounts in rural areas and 1.5 crore bank accounts in urban areas.
• All the zero balance accounts opened under PMJDY Scheme have an overdraft facility of Rs 5,000 for Aadhaar linked accounts. However, the account should be satisfactorily operated for 6 months to become eligible for this facility.
• The account holder automatically becomes eligible to receive the accidental benefit of Rs 1 Lakh offered by HDFC ERGO and a life insurance cover of Rs 30,000 offered by LIC.
• The accountholders automatically became eligible for subsequent government schemes like the LPG DBT scheme.
• The account holders will get interest on PMJDY deposits at prevailing interest rates. However, the balance in the account cannot exceed Rs 1 Lakh in a financial year.

Documents required for opening PMJDY accounts:

Some of the important documents that the beneficiaries must furnish to open a zero balance PMJDY account are as follows:

• Proof of identity
• Proof of address
• Passport-sized photographs

See Also: How To Get A Home Under Pradhan Mantri Awas Yojana?

Documents required for applicants belonging to HUF:

• Copy of PAN card or Form 60
• ID proof of Karta
• Address proof of Karta
• Joint Hindu family letter signed by the adult members of the HUF.

The list of KYC documents that must be submitted in the bank as address and ID proof are as follows:

• Pan Card
• Passport
• Diving license
• Voter ID card
• Aadhaar card
• Letter or card issued by UIDAI
• NREGA Job Card signed by a gazetted officer.

Benefits of PMJDY:

Accidental insurance cover: The PMJDY scheme is offered along with an accidental death cover. The accidental cover offers a sum assured of Rs 1 Lakh in case of demise of the account holder in an accident. This money is extremely useful for people belonging to the deprived classes.

No minimum balance required: Banks have made it mandatory to maintain a minimum balance for opening savings bank accounts. The public sector banks also have this provision and the private sector banks have higher minimum balance requirements.

With the PMJDY scheme, a large section of the BPL card holders were able to open savings bank accounts. This enabled them to open a savings bank account without any minimum balance, nurture the habits of saving and get government subsidies directly credited to bank accounts.

Get life insurance cover up to Rs 30,000: The PMJDY accountholder automatically becomes eligible to get a life insurance cover of Rs 30,000. An insurance cover for the BPL families allows them to leave a corpus in case of untimely death of the sole earning family member.

The Direct transfer of subsidies: The government has direct access to the beneficiaries. The government can directly transfer the subsidy benefits to the savings accounts of these beneficiaries and make sure it reaches the intended beneficiaries. The beneficiaries can get the subsidies directly transferred to bank account. This is a huge step to ensure transparency in the system.

Overdraft facility: The zero balance savings bank account offers overdraft facility. The account holder will now be able to get bank credit whenever required. But, this facility can only be availed after the completion of 6 months from the date of opening the PMJDY account.

Easy transfer of money: Under PMJDY scheme, the people belonging to the poor and vulnerable families can open savings bank accounts and use it for all transactions. Previously, they did not have savings accounts as banks required a minimum balance to be maintained. With the zero balance accounts, the account holders are able to access banking facilities, make transactions and avail government subsidies using the PMJDY account.

See Also: Pradhan Mantri Fasal Bima Yojana

Special benefits under PMJDY Scheme:

The PMJDY scheme came with some special benefits which are outlined below:

• The account offers the facility of 4 free withdrawals in a month (through all online and offline channels). Post this limit, a charge of Rs 10 will be levied per withdrawal.
• RuPay debit card was issued with each PMJDY account. The card has no annual renewal fees.
• The beneficiary can also enable the notification facility on their registered mobile number and get information on transfers and withdrawals.
• An individual can hold only one PMJDY account.
• The account holder can withdraw money from ATMs using the RuPay debit card.

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