Today we cannot imagine a person without a bank account. It is one of the necessities for everyone. However, earlier, many people, especially in villages, did not know about banks or how to open an account. They had no idea that with an account, they could save money in a safe place and take loans from the bank. Indian Prime Minister Narendra Modi noticed this and decided to spread the awareness about the importance of bank accounts. With this notion, the PM launched the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme to help more and more Indians open a bank account.
Under PMJDY scheme, any Indian who still needs to get a bank account can quickly open a basic one. The excellent part is that opening an account under PMJDY has many benefits. Read on to know more!
Quick Navigation
What is Pradhan Mantri Jan-Dhan Yojana PMJDY?
Pradhan Mantri Jan-Dhan Yojana is a scheme launched by Prime Minister Modi on 28th August 2014. The main aim of this scheme is to ensure access to essential financial services like banking, savings, credit, insurance, and pension funds to every household in India.
By opening a bank account under Pradhan Mantri Jan-Dhan Yojana (PMJDY), people can save money safely in the bank instead of keeping it at home. They can also take small loans if needed from the bank. Best of all, the government also provides some insurance benefits to account holders.
Learn about Ek Bharat Shreshtha Bharat Program
Benefits of Pradhan Mantri Jan-Dhan Yojana
Now let’s learn about the key benefits one gets by opening a PMJDY account:
- Basic Savings Bank Account: Anyone without a bank account can open a zero-balance basic savings bank account in any bank branch or nearby Bank Mitra Kendra. No minimum balance condition is there, which is why you do not have to keep adding funds to it.
- Interest on deposits: When you deposit amounts into your account, you will also be given interest on them. However, varying rates of interest apply across banks.
- Accidental insurance cover: All new PMJDY account holders automatically receive 2 lakh insurance coverage, which applies when death or disability occurs due to an accident under the Pradhan Mantri Jeevan Jyoti Bima Yojana.
- Overdraft facility: With a satisfactory transactional history, eligible PMJDY account holders may qualify for an overdraft facility of up to Rs. 15,000. This makes it possible for them to borrow a small amount of money from the bank when there is a need.
- Rupay debit card: Every account holder has been given a Rupay debit card that can be used to withdraw cash from ATMs or buy goods at shops.
- Direct benefit transfer: The government directly transfers subsidies, wages, and pensions into citizens’ bank accounts through Direct Benefit Transfer (DBT). This helps remove corruption.
- Access to other schemes: A PMJDY account opens the door for citizens to access other popular schemes like Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, and more. Facts about Indian Flag
Eligibility For Pradhan Mantri Jan-Dhan Yojana
Now, let’s see who can open a PMJDY bank account:
- Indian citizens currently without any bank account can open one under PMJDY.
- Residents of India who are applying individually or jointly with another person can open the account.
- Students above the age of 10 years can also open an account if the parent or guardian provides consent.
- One person can open only one PMJDY account. Existing account holders cannot reapply.
- Necessary address and identity proof have to be provided as per bank norms. Aadhaar cards, voter ID, pension documents, etc, are accepted.
- Accounts can be opened in any bank branch or Bank Mitra Kendra by simply filling out a small form. What is Make in India intiative?
Documents Required for Pradhan Mantri Jan-Dhan Yojana
The common documents required to open a PMJDY account are:
- Proof of identity (any one): Aadhaar card, voter ID, driver’s license, passport, pension document, etc
- Proof of address (any one): Aadhaar card, latest telephone bill, electricity bill in the applicant’s name, etc.
- One passport-size photograph.
- Introducer for new customers (existing bank customers who can introduce).
- For students below 18 years, proof of the parent’s or guardian’s identity and address is also required. Banks may ask for additional documents in some cases. India Facts That Will Stun You
How do you operate the PMJDY account?
Once the PMJDY account is opened, citizens can perform basic banking operations like:
- You can easily deposit and withdraw your money by going to the bank and using cheques.
- You can ask the bank for a passbook update where you will get your account’s current statement.
- One can easily withdraw cash from the account using the RuPay ATM-cum-debit card at bank ATMs.
- Another benefit is that you can transfer funds between your accounts or other accounts in the same bank or other.
- You can use net banking, debit card, or UPI to make utility bill payments for things like electricity, telephone, etc.
- Check account balance via passbook, ATM, mobile app, or net banking.
Do you know what is GST in India?
Facts about Pradhan Mantri Jan-Dhan Yojana
PMJDY has seen great success since its launch in 2014. Some key statistics highlighting its progress are:
- Over 53.13 crore PMJDY accounts have been opened as of now across India.
- Over 2,31,236 crores have been deposited in PMJDY accounts until now.
- The average deposit per PMJDY account is Rs. 4352.
- The Rupay cards are now very common, and about 36.14 crore cards have been issued to date.
- The major percentage of accounts, about 67%, have been opened in rural areas, and out of these, somewhere around 55% of account holders are females.
Towards a Secured Future
Pradhan Mantri Jan-Dhan Yojana PMJDY is one of the important events after India’s independence. It is a fantastic scheme that has successfully given every Indian a financial identity and connected them to the banking system. It aims to empower and secure the lives of millions financially and make India a financially empowered nation.