PMJDY full form is Pradhan Mantri Jan Dhan Yojana, a financial inclusion scheme launched by the Government of India in August 2014. The primary objective of this scheme is to ensure access to various basic financial services like basic savings & deposit accounts, remittance, credit, insurance, and pension for all individuals, particularly those who belong to low-income households without any previous bank accounts. A PMJDY account can be opened in any bank branch or a Bank Mitra outlet.
Under this scheme, any person above the age of 10 can open a bank account with zero balance. Additionally, account holders are also provided with a RuPay debit card, which can be used to withdraw cash, make purchases, and avail various other services.
The scheme also provides accident insurance coverage of ₹2 lakh and an overdraft facility of up to ₹10,000 for eligible account holders.
PMJDY Eligibility Criteria
Indian residents above the age of 18 years can open a PMJDY account. Even minor above the age of 10 years can open an account under the guidance of a parent or a legal guardian
Individuals with an existing bank account can transfer to a Pradhan Mantri Jan Dhan Yojana account
Individuals without any valid documents can also open a PMJDY account if the concerned bank does a background verification check and lists him/her as ‘low risk’
Individuals without the required documents can open a temporary PMJDY account which can be converted to a permanent account in 12 months after submitting the valid documents
If Aadhaar is not available, any one of the following required:
Voter ID Card
If any of the above also not available, an individual categorised as ‘low risk’ by the bank can open a PMJDY account by submitting any one of the following documents:
Identity Card with applicant’s photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;
Letter issued by a gazetted officer, with a duly attested photograph of the person
Accidental insurance cover of ₹2 lakh for PMJDY accounts opened after August 2018
No minimum balance required
Life insurance cover of ₹30,000
Government scheme beneficiaries will get direct benefit transfers in these accounts
Access to pension and insurance products
Overdraft facility up to ₹10,000 is available in only one PMJDY account per household, preferably lady of the household (after 6 months of satisfactory operation of the account)
In conclusion, the PMJDY has been a game-changer in India’s financial inclusion efforts as it has brought millions of unbanked individuals into the formal banking system, providing them with access to basic financial services such as savings accounts, insurance, and pension schemes. Overall, the Jan Dhan Yojana is a significant step towards financial empowerment and inclusive growth in India.
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