Pradhan Mantri Jan Dhan Yojana – All you need to know

Pradhan Mantri Jhan Dhan Yojana

What is Pradhan Mantri Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana is one of the largest government initiatives for financial inclusion in the world. Prime Minister Shri Narendra Modi introduced it on 15th August 2014 and thereafter launched it into action on 28th August 2014 all over the country. 

The scheme’s main goal was to provide financial services and products to individuals who do not have access to the bank account. Some financial services offered under the PMJDY are pension, insurance, and banking. It is basically to liberate the poor from the vicious cycle.

Under the scheme, an Indian citizen can open a zero balance account. However, if someone wants to avail of the cheque facility, they need to maintain a minimum balance in their account.

Moreover, no additional charges are levied on the individual to open an account under the Pradhan Mantri Jan Dhan Yojana scheme.

What is the eligibility for Pradhan Mantri Jan Dhan Yojana?

If an individual wants to open a Pradhan Mantri Jan Dhan Yojana account, he or she must meet the following criteria –

  • Only a citizen of India can open an account under the scheme.
  • To open an account under the Pradhan Mantri Jan Dhan Yojana scheme, individuals can visit any branch or Business Correspondent outlet.
  • Any minors who are above the age of 10 years old are eligible to open a savings account under this Pradhan Mantri Jan Dhan Yojana scheme.
  • The form for opening the account under this Pradhan Mantri Jan Dhan Yojana scheme is available in both English and Hindi on the official website of Pradhan Mantri Jan Dhan Yojana.

What is the rate of interest under the Pradhan Mantri Jan Dhan Yojana scheme?

The rate of interest usually offered under the Pradhan Mantri Jan Dhan Yojana scheme by most of the banks is 4%.

To know what is Pradhan Mantri Suraksha Bima Yojana, click here

What are the documents required to open a Pradhan Mantri Jan Dhan Yojana account?

In case if someone wants to open an account under the Pradhan Mantri Jan Dhan Yojana scheme, they need to submit the viable documents.

Following is the list of documents required for Pradhan Mantri Jan Dhan Yojana account under the scheme – 

  • PAN Card
  • Driving Licence 
  • Voter ID
  • Passport
  • A job card (issued by The National Rural Employment Guarantee Act (NREGA) and signed by a state government officer.)
  • It is necessary to submit all the above documents along with any other document requested by the central government after consulting with the regulator.
  • Moreover, the applicant must submit a photograph attested along with a letter from a Gazetted officer.
  • Any ID card issued by the State or Central Government, Scheduled Commercial Banks, Statutory or Regulatory Authorities, Public Financial Institutions, and Public Sector Undertakings is also a requirement. Also, the ID card must have a photo of the applicant present on it.
  • Furthermore, the following documents shall be deemed to be officially valid documents in case simplified measures are taken to verify the identity of the clients –
  • 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 Gazetted officer, with a duly attested photograph of the person.
  • If there is a change in the current address, you need to submit valid documents to transfer your account to the new address.
  • Two passport size photographs.
  • If a person does not have a valid residential address, he/she needs to submit a valid identity proof issued by the government of India.

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What is the process for opening a Pradhan Mantri Jan Dhan Yojana Account?

Here is the procedure for opening a Pradhan Mantri Jan Dhan Yojana account.

To begin with, the process requires you to fill out the Pradhan Mantri Jan Dhan Yojana form and submit it to the bank where you want to open your account.

All the participating banks have a Jan Dhan Yojana dedicated desk where a Jan Dhan Professionals known as Bank Mitr will be present for your help and to guide out through the process.

Hence, they will help you with the form submission and account opening procedure to obtain Pradhan Mantri Jan Dhan Yojana Account.

Subsequently, one needs to submit the account opening form along with certain ID proofs (identity and address proofs).

Applicants who already have a valid Aadhar number can submit the same and there is no need to submit any extra proofs apart from that.

Moreover, the applicant must submit 2 passport sized photographs with the bank at the time of opening the account.

After the submission of all the documents, the account is finally opened active in the next few working days and the bank issues a passbook to the applicant, a checkbook, a RuPay Debit card and also a Jan Dhan Yojana information kit

Soon after the account is all set up the person is eligible to take a loan of up to Rs. 5,000 from the bank after 6 months of opening the account.

This will offer benefits to many beneficiaries under the scheme who are below the poverty line. They can utilize this amount to invest in something more profitable or agricultural prospects.

To know what is Atal Pension Yojana, click here

What is the withdrawal limit for the Jan Dhan account?

The monthly limit of withdrawal from the Jhan Dhan Account is Rs 10,000 at this moment. However, the limit is not fixed. One can withdraw above this limit after ascertaining and documentation with the respective manger of that bank.

Insurance Covered by Pradhan Mantri Jan Dhan Yojana

The individuals who have the account under this scheme can also avail the insurance coverage worth Rs. 30,000, given they satisfy all the conditions.

The two conditions are that they should have the possession of accidental insurance coverage above Rs. 2 lakhs and the account should be opened by 26th January 2015.

What are the benefits of Pradhan Mantri Jan Dhan Yojana?

Here are the main benefits of this scheme –

  1. The savings account opened under this scheme gets a certain amount of interest on the deposits held by them.
  2. There is no need for maintaining a certain amount of minimum balance in the accounts opened under this scheme. Only in case if someone wants to avail the cheque facility, they need to maintain a certain amount as a minimum balance in their account.
  3. There also exists a provision of providing an Overdraft facility to the individuals who maintain the account in a good manner for 6 months. However, the overdraft facility is limited to only one individual per the household (usually to the lady in the house)
  4. Under the RuPay scheme, the individuals are eligible to receive an accidental insurance cover of Rs 1 lakh. To claim the insurance an individual must be RuPay cardholder and has made a successful non-financial or financial transaction. Only the transaction made within 90 days of the accident is suitable to be a PMDJY eligible transaction under the scheme. Moreover, the transaction must be made at an E-COM, POS, ATM, Bank Mitra, bank branch, etc.
  5. If an individual opened an account from 20th August 2014 to 31st January 2015, a life cover of Rs 30,000 is provided in case the beneficiary passes away.
  6. Insurance products and pension access are also one of the benefits to individuals under the scheme.
  7. Individuals who are a beneficiary of the government schemes receive Direct benefit transfer too.
  8. All the account holders under this scheme can check their balance using the mobile banking facility.

To know what is Pradhan Mantri Awas Yojana, Click here

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