Pradhan Mantri Jan Dhan Yojana (PMJDY)

Key Highlights

The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28 August 2014 by India’s Prime Minister Narendra Modi. He had announced the scheme on 15 August 2014 in his independence day speech. This scheme is run by the Department of Financial Services. It has the logo of Mera Khata, Bhagya Vidhata which means my account is Divine.

What is Jan Dhan Yojana?

PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

In a country like India, where many of the citizens especially the lower income segments are either unaware of the financial services available or find it too complicated or in many cases do not have access or affordability to avail these services, this scheme provides affordable financial services. The scheme aims to link each and every citizen of the country to the banking system. The accounts opened under this scheme has many added benefits. Moreover, the process of opening such accounts has also been made easy. Also, special camps are being organized to promote the scheme and improve its reach. Hence, this effort will provide financial empowerment to the poor people.

Benefits for PMJDY account holder

1. Zero minimum balance: Account holders will be provided bank accounts with no minimum balance.
2. Debit card facility: The beneficiary will get a RuPay debit card.
3. Insurance benefit: Accidental insurance cover of ₹1 lakh.
4. Loan benefit: After six months of the opening of the bank account, holders will be eligible for ₹5,000 overdraft from the bank.
5. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier possible only to smartphones.
6. Mobile banking facility: Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.

Who is Eligible

• Any person with Indian nationality.
• Minors with age of at least 10 years (should have a guardian to manage the accounts)
• A person who does not have any of the ‘officially valid documents’ can open “Small Accounts” on the basis of a self-attested photograph and put his/her signatures or thumbprint in the presence of officials of the bank. Such accounts have limitations regarding the aggregate credits, withdrawals, balance in the accounts and the time period.
• An applicant can transfer the already existing account into PMJDY account to enjoy the benefits it offers
• Age Limits: Account holder must be 18 to 60 years of age or a minor of at least 10 years.

Where to open the account

One can open the account in a bank or in a Business Correspondent (Bank Mitr) outlet.

Documents required

To open the account all one needs is to fill a form and present any of the following documents as per availability:

1. Applicant’s passport size photo,
2. Driving license,
3. Voter’s Identity Card issued by Election Commission of India,
4. the Permanent Account Number (PAN) Card,
5. job card issued by NREGA duly signed by an officer of the State Government,
6. the letter issued by the Unique Identification Authority of India containing details of name, address, and Aadhaar number, or
7. any other document as notified by the Central Government in consultation with the Regulator

Performance Analysis

It indeed had a grand start with 1.5 Crore (15 million) bank accounts being opened on the inauguration day itself. It also holds the Guinness World Records for “The most bank accounts opened in 1 week”.

As of 17 January 2018, 30.97 Crores bank accounts were opened under this scheme having a balance of more than 73 crores in them and more than 23 crores RuPay cards were issued.

Plus Points

• Since it allows direct money transfer in bank accounts, this will help to cut down corruption.
• Also, having a bank account will promote savings and will keep the money safe and secure.
• Other then this, it will bring more money in country’s financial system and thus will promote investment in development activities.

Criticism

• Some experts argue that offers like zero balance, free insurance, and overdraft facility would result in duplication of accounts i.e people might open more than one account to avail the benefits.
• The overdraft facility will only be provided to those who have a satisfactory transaction history which makes it more dependent on the bank’s decision.
• But, this has put excess work burden on banks.
• These accounts have not added significant profits to public sector banks till now.
• People criticize the scheme by calming it to be an effort to please voters and that the poor deserve food more than bank accounts and financial security.

Application form for Jan Dhan Yojana

To read more about similar schemes click on the links below:

Shadi Shagun Yojana For Muslim Girls

Full Detail Of Rajasthan Government Scheme

Ladli Laxmi Yojana- Application process, eligibility criteria, and benefits

Pradhanmantri Awas Yojana Full Detail In Hindi