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Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana popularly known as PMJDY is a financial inclusion scheme launched by the Prime Minister of India, Narendra Modi on August 28th, 2014. This scheme aims to provide banking and financial services to the unbanked and uninsured in India. The scheme will provide each household in India with a basic savings bank account. PMJDY is a zero balance savings bank account and you earn interest on the money deposited under this scheme. You are given a RuPay card to withdraw money from your PMJDY account.


Who can open a savings bank account under the PMJDY scheme?

  • Any Indian citizen who is 10 years or more is eligible to open a PMJDY account absolutely free of cost. Citizens in both rural and urban areas can open an account under the PMJDY scheme.
  • A minor citizen requires a guardian to open an account under this scheme.
  • You require an identity proof authorized by a gazette officer to open an account under PMJDY scheme.
  • You are given a cheque book and other facilities if you maintain a certain minimum balance in your account under the PMJDY scheme.
  • You may not have any valid documents to prove you are an Indian citizen. The bank would do ground research and if they find you an Indian citizen, will categorize you as low risk. You can now open an account under PMJDY scheme.
  • If you already have a savings bank account, you can easily transfer this account to the PMJDY scheme and enjoy the benefits under this scheme.

Benefits of PMJDY Scheme

You don’t have to maintain a minimum balance in your PMJDY account

  • Many banks require you to maintain a minimum balance in your savings bank account. Even PSU banks might have this requirement. But accounts opened under PMJDY scheme have no requirement to maintain a minimum balance.

PMJDY offers free life insurance cover worth Rs 30,000

  • You get free life insurance worth Rs 30,000 if you open a savings bank account under the PMJDY scheme. Only a single member of your family (Could be the head of the family / bread winner) is eligible to get life insurance under the PMJDY scheme. The member of the family needs to be between 18 to 59 years to avail of this life insurance under the PMJDY scheme.
  • If the head of the family is 60 years and above, then the second earning member of the family is covered under the scheme, provided he fulfills the eligibility criteria.
  • On death of this member, a sum of Rs 30,000 is paid to his nominee. This might not seem a big amount, but to the rural poor in India ,this is quite a big sum.

PMJDY offers free accident insurance worth Rs 1 Lakh

  • You get free accident insurance worth Rs 1,00,000 for you and your entire family, if you open a saving bank account under the PMJDY scheme and are in the age group of 18 to 70 years.
  • You must have a RuPay card and use it at least once within 45 days of receiving it from the bank.
  • You must intimate the bank within 30 days of meeting with an accident to make your claim.

PMJDY offers direct transfer of subsidies

  • You might be receiving various benefits under different government schemes like a LPG subsidy. Now, you will receive the subsidy amount directly into your PMJDY account.
  • You need to link your Aadhaar card with your PMJDY account to enjoy direct transfer of subsidies.

PMJDY offers direct transfer of subsidies

  • You get an overdraft facility of Rs 5000 (Loan given which has to be repaid), which is available to only 1 member of a particular family. The preference is for a female member.
  • You get an overdraft facility only if the PMJDY account is functional for 6 months.
  • You need to have a good transaction record to avail this facility.
  • You are charged a nominal interest rate on availing the overdraft facility.
  • An overdraft of Rs 5000 might seem a small amount, but to the people in rural areas, this is a major benefit.
  • Citizens in rural areas can use the overdraft for farming and agricultural facility.

PMJDY offers you mobile banking facilities

  • If you open a PMJDY account, you can check your balance and even transfer money using your mobile phone. Most of the citizens residing in rural areas have a mobile connection. They can easily transfer money to their friends and relatives.

How to open a PMJDY account?

Step 1 : You must visit the bank designated by the government to open a PMJDY account. List of banks who are authorized to open accounts under the Jan Dhan Scheme :

Public sector banks


Private sector banks

step 2 : You go to the respective bank counter and find the desk with Jan Dhan Yojana details. You meet the officials called Bank Mitra's or Business Correspondent Agents, who help fill the account opening form.

step 3 : You submit this form along with a color passport size photograph and your signature.

step 4 : You then submit a valid ID proof. If you have an Aadhaar card, you don't need any other ID proof.
If you don't have Aadhaar, you can use the following documents :

  • Voter ID
  • PAN Card
  • Driving license
  • Passport
  • NREGA Job Card attested by a State Government Official.
  • You are given a RuPay Debit Card to withdraw money at ATMs or make any transactions at retail stores.

Can an existing SB account holder open an account under PMJDY?

  • If you are an existing savings bank account holder, you can enjoy the benefits of the Jan Dhan Yojana, without having to open another bank account.
  • You must submit an application at the respective bank branch to get your RuPay debit card. With this RuPay card, you get to enjoy the insurance benefits offered under the scheme.

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