Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion programme of Government of India which was announced by Prime Minister on the auspicious occasion of 15th August 2014. It aims to expand and to make affordable access to financial services such as bank account, insurance, credit availability, pension etc to every citizen of the country whether rural or urban.

The Department of Financial Services under the finance ministry runs this scheme and about 32.54 crore accounts have been opened till 29th August 2018 under this scheme, out of which about 17.18 crore are women account holders. PMJDY provides a no-frills account (no minimum balance required) to citizens while there is a minimum balance criterion if the account holder asks for a cheque-book while opening the account. The tagline of PMJDY is “Mera Khaata, Bhagya Vidhatha”.

Benefits provided under PMJDY

The opening of a no-frills account

These days banks are charging a penalty fee to its customers if they are unable to maintain their minimum average balance. While banks give certain reasons for it, one of them is the maintenance of the no-frills accounts under PMJDY. An account opened under PMJDY doesn’t require any maintenance of minimum balance, it comes with a free RuPay debit card provided by National Payment Corporation of India (NPCI).

Overdraft Facility

PMJDY account provides an overdraft facility of up to 5,000* rupees to its account holders after 6 months from the date of opening the account. The amount to be provided depends upon the credit history of the last 6 months, the amount deposited etc. The overdraft facility is provided to only one member of the family preferably women of the house. However, in August the steering committee on financial inclusion mission recommended to increase the overdraft facility from 5,000 to 10,000 rupees and the government has accepted the same recently.

The opening of Small accounts are allowed

A person has to give his valid identity proof for KYC (know your customer) norms to open an account. But what if somebody doesn’t have any identity proof? Can they open an account? The answer is Yes. They are eligible to open “Small Account” as per the RBI guidelines. A small account can be opened by providing a self-attested photo and signature in presence of the bank officer. It will be valid for only one year and can be extended to further one year if the account holder submits any proof that he or she has applied for any identity proof. In small accounts, balance cannot be exceeded 50,000 rupees at a point of time, total deposits in a year cannot be more than 1 lakh rupees, maximum withdrawal of up to 10,000 rupees is allowed in a month.

Insurance cover provided

PMJDY account comes with an accidental insurance cover of 1 lakh rupees and a life insurance cover of 30,000 rupees. An account holder is eligible to claim accidental insurance only if he or she had used the RuPay debit card for any type of transaction or balance enquiry within 90 days prior to the date of the accident.

Engaging Business Correspondent

The business correspondents (BC) of banks provide services in unbanked rural areas to help elderly citizens to withdraw their pension, MNREGA workers to withdraw their wages which are transferred directly into their accounts by Direct Benefit Transfer (DBT) scheme and much more.

Click here to read about Pradhan Mantri Mudra Yojana.

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