India being most populated and diversified country where more than half of its population is below the poverty line, there was an exigent need to introduce measures which would directly provide benefits and subsidies to the poor and needy people. As the good things come to those who wait. The government enforced the most powerful scheme on 28 August 2018 widely known as Pradhan Mantri Jan Dhan Yojana to provide bank account facilities to each and every household in the country. This deep penetration at an affordable cost is possible only with the effective use of technology. Let us discuss in depth about the scheme in this guide by H&R Block.
Prime Minister Narendra Modi on 28 August 2014 launched highly striving scheme widely known as Pradhan Mantri Jan Dhan Yojana (PMJDY) which is a substantial project of NDA government and envisages to open at least one bank account in every household in the country. The main objective of this scheme is ensuring easy access to various financial services like availability of basic savings bank account, access to need-based credit, remittances facility, insurance and pension to the weaker sections & low-income groups especially to the poor and needy sections. Bank Account in this scheme can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. Usually accounts opened under PMJDY are with Zero balance. According to the data issued by the finance ministry, till date 31.60 Crore beneficiaries’ bank accounts have been opened and ₹81,203.59 Crore Balance in beneficiary accounts.
This is major scheme proves to be iron hand in dealing with corruption as the benefit and other subsidies will be directly credited to your account without any mediator or corrupt person in between and will help in the upliftment of poor and boost development of the country economically and socially.
The scheme is particularly implemented for the betterment of poorer and backward sections of the society. PMJDY is a National Mission incorporating an integrated approach to bring about the comprehensive financial inclusion of all the households in the country. The main benefits are described below:
The account holders of PMJDY scheme can avail insurance accidental life cover and life cover benefits. The scheme enables them to enjoy life accidental life insurance coverage of Rs 1,00,000 and life insurance coverage worth Rs 30,000.
Overdraft facility generally allows the customers to withdraw money from their account even when they have zero balance in the account. As already discussed, the account holder can avail the overdraft facility from an account under the Pradhan Mantri Jan Dhan Yojana scheme. The overdraft facility even helps when you have given a cheque of Rs 2,000 to someone but you have zero balance in your account. During such a time, your cheque won’t bounce due to the overdraft facility. Overdraft also helps when ATM withdrawals are made during an emergency without knowing the balance in the debit card.
Generally, banks and Business Correspondent outlets provide this bank account scheme under Pradhan Mantri Jan Dhan Yojana. The list of banks are given below:
Public Sector banks offering PMJDY
NOTE: The government of India has allowed these private and public banks to conduct special camps on Saturdays from 8 am to 8pm to help people open bank accounts under PMJDY.
In order to enjoy the benefits under this scheme you need to satisfy the following criteria:
NOTE: The minimum age limit for a minor is 10 years. Otherwise, any Indian resident over the age of 18 years is eligible to open this account. Income is not a bar to open a PMJDY account, although it is primarily meant for the poor section. An individual needs to exit scheme on after reaching the age of 60 years.
An account can be opened by presenting an officially valid document mentioned below:
The PMJDY offers a life cover of Rs 30,000 to the family members, in case the life assured dies. This benefit can be enjoyed by those subscribers who opened their bank accounts under PMJDY from 15th August 2014 to 26th January 2015. An account holder needs to fulfil the following conditions to avail the benefit of life cover:
As per the claim settlement procedure set by the PMJDY, a person needs to adhere to the following norms:
The following details you need to include in the application form of PMJDY:
Follow the steps to download the form and fill the form and apply for a Jan Dhan account at a bank of your choice:
PMJDY aims to include every household under its goal of financial inclusion whereas the Swabhimaan scheme included the villagers. The Swabhimaan scheme targeted villages with population exceeding 2,000 while under PMJDY whole country is to be covered by extending banking facilities to the families living in the villages and urban areas. Thus, under PMJDY, any individual irrespective of his/her area can get a bank account without depositing any amount and fulfilling the required eligibility criteria.
For those citizens having queries regarding the Pradhan Jan Dhan Yojana scheme, or have doubts related to the processes of the scheme, the government has set up dedicated toll-free numbers to clear all doubts. The toll-free numbers are – 1800 110011 and 1800 180 1111.
Ans: BSBDA stands for Basic Savings Bank Deposit Account. It is a basic savings account defined under the Reserve Bank of India circular dated 10.8.2012
Ans: It is a domestic debit card introduced by the National Payment Corporation of India. The RuPay Debit Card is accepted at all ATMs for withdrawing cash and POS machines for making cashless payment for purchases. The card is accepted across the country.
Ans: One can exist when he/she attains 60 years of age.
Ans: Yes. It is available in Hindi.
Ans: Yes, you can definitely open a join account.
Ans: Yes, bank will issue you a RuPay Card. The concerned bank person will inform you all related risks involved in using the RuPay Card, and how to use it and keep it safe.
Ans: Yes, you can link your mobile number with your bank account. You can do so by contacting your bank where you have opened your bank account under PMJDY. Bank will enter your mobile number in the CBS system based on the information provided by you.
Ans: A small account is a kind of bank account opened under PMJDY for 12 months. A small account can be opened by a person who does not have valid documents to open an account. However, after 12 months, the account holder needs to submit required documents to continue the account.
Ans: Normally, the applicable rate of interest is 4%. However, it is subject to change.
Ans: Bank Mitr refers to the business correspondents agents who provide banking services at select locations. The Bank Mitr represents the bank and helps it expand its outreach. It offers banking services at low cost at areas where establishing a brick and mortar branch is not feasible. Retired Bank Employees, Retired Teachers, Retired Government Employees and Ex-Servicemen can join as a Bank Mitr.
Ans: Usually, the accounts opened under PMJDY are Zero balance accounts. If an account-holder wishes to get cheque book, he/she will have to fulfil the minimum balance criteria required by a bank.
Ans: Yes, you can easily transfer your account from one city/state to another as all banks offering bank accounts have core banking solutions. You can do this by simply requesting the bank.