The Pradhan Mantri Jan Dhan Yojana is an initiative by the Government of India aimed at promoting financial inclusion. It is open to all Indian citizens, including minors aged 10 and above who can open an account with a guardian’s assistance. The program’s goal is to provide affordable access to essential financial services such as bank accounts, remittances, credit, insurance, and pensions.
Launched by Prime Minister Narendra Modi on 28 August 2014, following his announcement during his first Independence Day speech on 15 August 2014, the scheme is managed by the Department of Financial Services under the Ministry of Finance. On its inauguration day, 15 million bank accounts were opened. This achievement was recognized by the Guinness Book of World Records, which noted: “The most bank accounts opened in one week as part of a financial inclusion campaign is 18,096,130, achieved by the Government of India from August 23 to 29, 2014.”
By 27 June 2018, the scheme had successfully opened over 318 million bank accounts and accumulated deposits exceeding ₹792 billion (US$12 billion). The scheme’s slogan is “Mera Khaata, Bhagya Vidhata” (meaning “My account, fortune maker”). It was introduced in response to the shortcomings of previous government initiatives, such as the Swaabhimaan campaign of 2011, which aimed to extend banking services to rural areas but did not achieve its goals.
Pradhan Mantri Jan Dhan Yojana : Features
- Basic Savings Bank Deposit (BSBD) account holder should not be maintaining any other savings bank account with any bank/branch to ensure compliance with RBI directives
- Accidental insurance cover of Rs. 1 Lakh under Rupay Scheme and for accounts opened after 28/08/2018 accidental Insurance Cover is of Rs. 2 lakhs
- The scheme provide life cover of Rs. 30,000 payable on death of the beneficiary, subject to fulfilment of the eligibility condition i.e. accounts opened between 15/08/2014 – 31/01/2015
- Easy transfer of money across India
- Beneficiaries of Government schemes will get direct benefit transfer in these accounts
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
- Access to pension, insurance products
- The claim under personal accidental insurance under PMJDY shall be payable if the Rupay card holder have performed minimum one successful financial or non-financial transaction at any of bank’s Channel both Intra and Inter – bank i.e. on-us (ATM/ Micro-ATM/ POS/ Business Correspondent of the bank at locations by any payment instrument) within 90 days prior to date of accident including accident date of RuPay PMJDY Cardholders or off us (same bank channels – Bank Customer /RuPay cardholder transactions at other bank channels).
- Overdraft facility up to Rs. 10,000 is available in only one account per household, preferably lady of the household subject to eligibility and overdraft for Rs. 2000 is hassle-free.
Pradhan Mantri Jan Dhan Yojana : Most Important Terms and Conditions (MITC)
- BSBD account, which is operated satisfactorily for at least six months.
- OD to be granted to the earning individual of the family subject to only one member from a family can be granted limit.
- There should be regular credits under DBT/DBTL scheme/other verified sources.
- BSBD account holder should not be maintaining any other savings bank account with any bank/branch to ensure compliance with RBI directives
- Age of applicant between 18 years to 65 years.
- Minor i.e. customer below the age of 18 years are not eligible for OD under PMJDY.
- KCC/GCC borrower is not eligible for PMJDY OD.
- Minimum OD amount Rs, 2,000/- without any assessment subject to fulfilling the above eligibility criteria For amount beyond Rs.2000/-, eligible amount for overdraft is 4 times of average balance of preceding six months or 50% of credit summation in the preceding six months or Rs. 10,000 whichever is lower.
