PMJDY Scheme: Benefits, Eligibility, and How To Link Aadhaar With PMJDY Account
PMJDY (Pradhan Mantri Jan Dhan Yojana) is a financial scheme operated by the Ministry of Finance. The scheme was introduced by the Union Government in 2014 with the mission to make basic banking facilities available to everyone, especially the economically weaker sections of society. Read the entire blog to have a better understanding of PMJY scheme details.
| Interest Rate | Based on the bank’s interest rate on savings accounts |
| Minimum Balance | Zero balance account |
| Accidental Insurance Cover | Rs.1 lakh under Rupay Scheme and Rs 2 lakh for accounts opened 28th August 2018 |
| Overdraft Facility | Provided |
What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?
The PMJDY scheme aims to offer financial services such as savings or fixed deposit accounts, insurance, pension, remittance and credit. Till now, more than 32.41 crore PMJDY accounts have been opened, which hold approximately Rs. 81,200 crores of deposit balance. In the last 8 years, the scheme has successfully offered financial freedom to the poor and needy section of our society.
How Does Pradhan Mantri Jan Dhan Yojana Work?
Individuals can open a Basic Savings Bank Deposit Account (BSBD) in their own name under the PMJDY scheme. The bank account can be opened at any bank in India or at any Bank Mitra branch. Individuals who do not have a bank account in their name can open one under the PMJDY scheme.
In addition, the beneficiaries will receive a RuPay Debit card with a 1 lakh accident insurance cover.
Objectives of Pradhan Mantri Jan Dhan Yojana (PMJDY)
The Prime Minister, Mr Narendra Modi introduced the Pradhan Mantri Jan Dhan Yojana scheme to promote banking and financial literacy among the lower-income group of individuals.
Here are the objectives of Pradhan Mantri Jan Dhan Yojana (PMJDY) :
- Dividing each district into Sub Service Areas (SSA) to ensure access to banking services
- Providing Basic Banking Accounts and RuPay Debit Cards to each household
- Increasing financial literacy in rural areas
- Establishing a Credit Guarantee Fund to cover overdraft defaults
- It offers microinsurance to Indian citizens.
- Creating unorganised sector pension schemes such as Swavlamban
PMJDY Features
1. Rupay Credit Card
The Bank Account holder receives a RuPay Debit Card from PMJDY. It is a global card payment network that is widely used in India and protects users from anti-phishing. If the accounts are properly managed, credit facilities on the card will be available.
2. Life Insurance Cover
Holders of a RuPay Debit Card under the PM Jan Dhan scheme can also receive life insurance coverage of up to 30,000 rupees. It will only apply to people who open their first bank account with a debit card under the Jan Dhan Yojana. The individual should also be the family’s head or a major earner. Upon the death of a beneficiary, this scheme will be liable for a single payment of 30,000.
3. Basic Savings Bank Deposit Account (BSBDA)
A BSBDA can be opened by any Indian citizen who is eligible to open a regular bank account. There is no minimum balance requirement for this type of account, and account holders can deposit and withdraw cash at both bank branches and ATMs. However, cash withdrawals are limited to four times per month.
4. Interest
Based upon the savings account interest rate offered by the bank, The amount which is deposited into the account earns an interest rate
5. Number of Accounts
One account is permitted for a single person who does not have a bank account in his or her name.
6. Minimum Balance
There is no minimum balance requirement in the account. Even if the account has no balance, it can still be used.
How to Open a PMJDY Account?
One can open a zero-balance savings account under this scheme. Here are the steps that you can follow to open a PMJDY account with a bank:
- Step 1
Collect the application form, which is known as the ‘financial inclusion account opening form’. You can collect it from the branch of your preferred bank or download it from the official website of PMJDY. It is available in both English and Hindi.
- Step 2
Fill up the form with the details required, such as bank details, and applicant and nominee details.
- Step 3
Attach the required documents to the form. In the case of an online application, you are required to upload scanned copies of the documents.
- Step 4
Submit the form and your account will be opened after the successful verification of the documents.
PMJDY Eligibility Criteria
The eligibility criteria for opening an account under the Jan Dhan Yojana are minimal. They are as follows:
- You must not have an existing bank account
- You should be at least 10 years old
- You must be a citizen of India
Documents Required to Open a PMJDY Account
Individuals can open a PMJDY account by submitting any of the documents listed below:
- PAN card
- Aadhaar card
- Passport
- Driving license
- Voter ID
- NREGA (National Rural Employment Guarantee Act) card
- A duly-attested letter with your passport size photograph issued by a Gazetted officer
Please note that you do not need to submit all the documents that have been mentioned above. You are required to submit any one of them to prove your identity and residential address.
In case you are unable to provide these documents, you can also open a ‘Chota Khata account’ under this scheme.
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How to Link Aadhaar with Jan Dhan Account Online?
You can link your Jan Dhan account with your Aadhaar online through the official portal of PMJDY. The online process is quite fast and simple. Follow the steps below to link your Aadhar with your Jan Dhan Account Online:
Step 1: Go to the official portal of Pradhan Mantri Jan Dhan Yojana.
Step 2: Now, enter your credentials and log into your account.
Step 3: Locate and click on the ‘Link Aadhaar with bank account’ option on the homepage.
Step 4: A new webpage will open. Here, you have to provide your 12-digit Aadhaar number and then click on ‘Submit’.
Step 5: Now, choose your bank from the list and click on ‘Submit’.
Step 6: You will receive an OTP on the mobile number that is registered with your Aadhaar card. Enter the OTP and tap on ‘Submit’.
The process for linking your Aadhaar with your Jan Dhan account will be initiated and will be completed within a few days.
How to Link Aadhaar with Jan Dhan Account Offline?
If you do not have a mobile number registered with your Aadhaar, you can link your Jan Dhan account with your Aadhaar offline by visiting the nearest bank branch. Follow these steps:
Step 1: Go to your bank branch and ask for the Aadhaar linking form. You should remember to take the bank passbook and original Aadhaar card. In addition, you will require self-attested copies of your passbook and Aadhaar card.
Step 2: Fill out the form correctly. Provide all necessary information such as bank account number, address, Aadhaar number, etc. Recheck the details before submitting.
Step 3: Submit the form along with self-attested copies to the concerned officer.
Once you complete the process, your bank account will be linked with your Aadhaar card within 2-3 working days.
Link Aadhaar with Jan Dhan Account via SMS
The process to link Aadhaar with the PMJDY account through SMS is highly convenient. However, you have to send the SMS from the mobile number that you have registered with your Jan Dhan account.
Every bank has a unique format in which the customers should send the SMS for linking their account with their Aadhaar. Moreover, the number to which you have to send the SMS also varies from one bank to another.
After checking the SMS format, the mobile number provided for your bank, send the SMS. Your Jan Dhan account will be successfully linked with your Aadhaar.
Link Aadhaar with Jan Dhan Account via ATM
In addition to the three above-mentioned processes, you can link your PMJDY bank account with Aadhaar by using your ATM card. Here’s what you need to do:
Step 1: Visit your nearest ATM along with your Aadhaar card.
Step 2: Insert the ATM card and enter your PIN.
Step 3: Choose the ‘Service’ option from the list of options displayed on the screen.
Step 4: Tap on ‘Link Aadhaar’ and then enter your Aadhaar number. Re-enter the number for confirmation.
Step 5: Finally, click on ‘Submit’ to complete this process.
What is the Interest Rate for PMJDY?
To avail the benefits of Pradhan Mantri Jan Dhan Yojana, you have to open a savings account that is linked to the scheme. You can open a PMJDY account in your preferred bank; however, make sure that the scheme is offered by your chosen bank.
The interest rate offered on your PMJDY account will depend on the savings account interest rate offered by that bank. This rate may vary from time to time.
Benefits of Pradhan Mantri Jan Dhan Yojana
PMJDY aims to make basic banking facilities available to everyone by offering unique benefits to its account holders. Here are PMJDY account benefits:
- Zero deposit savings account
- No minimum balance requirement
- Insurance cover of up to Rs.1 lakh for accidents to RuPay card holders; for accounts opened after 28.08.18, this cover has been extended to Rs. 2 lahks.
- Life cover of Rs.30,000 by LIC.
- Government scheme holders get the benefit of Direct Benefit Transfer, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Micro Units Development & Refinance Agency Bank and Atal Pension Yojana.
- Facility of overdraft available after 6 months of opening and operating the account.
- Rs.10,000 of overdraft available for every individual in a household.
- Access to insurance and pension products.
- Death benefit of Rs. 30,000 to the nominee due to the unfortunate demise of the account holder.
Banks that Provide PMJDY Scheme
One can open a PMJDY account in either a public or private sector bank. Given below is the list of private and public sector banks which provide the facilities available under Jan Dhan Yojana.
| Public Sector Banks | Private Sector Banks |
| Union Bank of India Allahabad Bank Oriental Bank of Commerce Syndicate Bank Dena Bank Vijaya Bank Punjab & Sind Bank Punjab National Bank Central Bank of India IDBI Bank Indian Bank Corporation Bank Bank of India Canara Bank Bank of Maharashtra Bank of Baroda Andhra Bank State Bank of India | Kotak Mahindra YES Bank Dhanlaxmi Bank Karnataka Bank IndusInd Bank ING Vysya Bank Federal Bank HDFC Bank ICICI Bank Axis Bank |
Interesting Facts about PMJDY
- 31 crore accounts have been opened across rural and urban India
- The total balance in these accounts is 80,000 crore as of April 2018
- SBI has opened the most PMJDY accounts under public sector banks.
- The Guinness Book of World Records recognized PMHJDY as the most bank account opened in 1 week.
Final Word
Pradhan Mantri Jan Dhan Yojana does not only focus on providing financial freedom to the rural areas or villages but to the whole country. It aims to ensure that each and every individual gets access to basic financial facilities, including the benefits of pension and insurance. The zero-balance account policy also helps people who belong to the economically weaker sections of society.
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FAQs
Yes, you have the option to convert a PMJDY account into a normal savings account. However, it is not recommended as you will miss out on the benefits offered by the scheme.
You have to keep the following documents handy while applying to link your Jan Dhan account with your Aadhaar:
– Aadhaar card
– Bank passbook
– ATM card
In addition to this, you will also have to register your mobile number with your Aadhaar for the OTP that you will receive via SMS.
You can avail the following benefits if you link Jan Dhan with Aadhaar:
– A total of Rs. 1.30 lakh benefit from the central government that would include accident insurance worth Rs. 1 lakh and general insurance of Rs. 30,000.
– An overdraft facility of Rs. 10,000
Benefits of various government schemes such as Atal Pension Yojana, Pradhan Mantri Mudra Yojana, etc.
A maximum withdrawal of up to Rs. 10,000 is allowed per month. As there is no minimum balance requirement in PMJDY accounts, one can make this withdrawal anytime.
No, there is no maturity benefit available under this scheme; however, account holders get death benefits. The death benefit amount of Rs. 30,000 will be transferred to the nominee upon the demise of the account holder.
Yes, it is essential to have your mobile number linked with your Aadhaar if you are willing to link your Aadhaar with your Jan Dhan account via online mode. If you wish to link them via SMS, you should also register your mobile number with your PMJDY account.
Usually, the applicable rate of interest on overdrafts available under PMJDY is either 12% or base rate + 2%, whichever is lower. PMJDY offers this facility to help business owners or borrowers who wish to borrow money against their account as a short-term loan. The overdraft facility has a limit of Rs. 10,000
A ‘Chota Khata Account’ is a small account that can be opened under the PMJDY scheme for 12 months.
This account is ideal for people who do not have the required documents to open a PMJDY account. One only needs to submit two copies of self-attested photographs to open a Chota Khata account. After 12 months, the holder can renew the small account by submitting the required documents.
As of now, opening a Jandhan account online option is not available. You can open Jan Dhan account offline by referring to the blogs written above.
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