Pradhan Mantri Jan-Dhan Yojana (PMJDY) is an important financial scheme. Honourable Prime Minister Narendra Modi announced the scheme in his Independence Day speech in 2014. The scheme started on 28th August 2014. It is the world’s largest financial inclusion plan. The Honorable Prime Minister quoted a Sanskrit verse – Sukhasya Moolam Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam.
This ancient verse says the state has to involve all people in economic plans and activities. The PMJDY is a step in that direction. The Government understands its responsibility and accepts it. Shri. Narendra Modi also sent emails to 7.25 crore bank employees. He urged them to reach the target of opening 7.25 bank accounts under this scheme and remove financial untouchability.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Introduction
The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to include all Indians in the formal banking system. Under this plan, all unbanked individuals will get access to a bank account. All households, urban or rural, should at least have one bank account. They should have access to credit facilities, pensions, insurance and financial literacy.
In this age of digital growth, financial inclusion of all is important and easier. The economic prosperity of individuals leads to the overall growth of the nation.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Key Points
Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide banking access to all individuals. This will ensure transparency in distributing various benefits to deserving individuals. State, Centre or local bodies can check the distribution of funds. The key features of this scheme are:
- A bank account for every person.
- Easy process.
- No minimum balance has to be maintained.
- Unlimited deposits.
- Interest on deposit.
- Rupay debit card is given to the account holder.
- Some banks may also issue chequebooks at no additional charge. It is at the Bank’s discretion.
- Accident Insurance cover of Rs. 1 lakh to PMJDY accounts opened before August 2018.
- Accident Insurance cover of Rs. 2 lakh to PMJDY accounts opened after August 2018.
- Direct Beneficiary Transfer (DBT): Individuals are eligible to receive government benefits under various schemes like Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.
- Overdraft facility of Rs.2000 without any conditions.
- Overdraft up to Rs.10,000 for eligible individuals.
- The age limit for the Overdraft facility is a minimum of 18 years and a maximum of 65 years.
- The Government has created a Jan-Dhan, mobile banking and Aadhaar (JAM) pipeline. It has linked all three to enhance the ease and reach of benefits directly to the beneficiaries.
How to open a Pradhan Mantri Jan Dhan Yojana (PMJDY) account?
Pradhan Mantri Jan Dhan Yojana (PMJDY) account can be opened in many banks. This section will list the documents required and the participating banks.
Pradhan Mantri Jan Dhan Yojana Eligibility
- Citizen of India.
- More than 10 years of age. Facilities like overdrafts are applicable only after attaining 18 years.
- No other bank account.
Pradhan Mantri Jan Dhan Yojana: Documents Required
The documents required to open a Pradhan Mantri Jan Dhan Yojana (PMJDY) account are as follows:
- Aadhaar card: An Aadhaar card is sufficient. No other documents are required. If the address on the Aadhar is invalid now, the individual can give a self-certificate stating the new address.
- If an Aadhar card is not available then any of the Official Valid Documents(OVD)can be used:
- Voter ID card
- Driving license
- PAN card
- Passport
- NREGA Card
If these documents also contain the address, it will be used as proof of identity and address.
If an individual does not have any of the Officially Valid Documents(OVD) listed above but is categorised as low risk by the banks then; they can open a PMJDY bank 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;
- A letter issued by a gazette officer with all the relevant details and an attested photograph of the applicant.
Which banks open a Pradhan Mantri Jan Dhan Yojana (PMJDY) account?
Most public sector banks facilitate Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts like:
- Bank of Baroda
- State Bank of India
- Union Bank of India
- Bank of India
- Bank of Maharashtra
- Allahabad Bank
- Canara Bank
- IDBI Bank
- Punjab and Sind Bank
Private banks like:
- ICICI bank
- Axis Bank
- Federal Bank
- YES Bank
- HDFC Bank
- Kotak Mahindra Bank Limited
These are some banks offering this service.
Bank Mitras (Business Correspondent Agents) are also authorised to help individuals open these accounts. They are individuals appointed by banks to facilitate their services in remote areas. Areas where a bank building may be unavailable due to various factors. These Bank Mitras help individuals fill out applications, make small deposits, and issue small withdrawals.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Latest Statistics (31.07.2024)
Under Pradhan Mantri Jan Dhan Yojana (PMJDY), a National Mission for Financial Inclusion plan, the key achievements as of 31/07/24 are:
- Issuance of approx 35.97 crore RuPay cards to these account holders.
- 29.48 crore female beneficiaries.
- 35.27 crore beneficiaries in semi-urban/ rural areas
- 17.72 crore beneficiaries in urban bank branches
- Total deposits of Rs.228361.93 in accounts
Conclusion
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is the government’s flagship financial inclusion scheme. It was to be discontinued in 2018 but has received an extension. Crores of poor Indians have benefitted from this scheme. Earlier, they were outside the ambit of official banking channels. This made them vulnerable to loan sharks and middlemen.
This financial inclusion offers dignity and financial literacy. Getting Direct Beneficiary Transfer (DBT) has empowered this marginalised section of society. Accidental Insurance, pension enhanced social security. The availability of Overdraft has ensured access to funds in an emergency. This has helped the economically weaker and vulnerable section of society become an active participant in the country’s development.
