Pradhan Mantri Jan Dhan Yojana (PMJDY)

Source: imp.center/gov/indian

Most individuals face acute struggle when handling complicated financial services such as credit, insurance, pension, savings and deposit accounts.The Indian Government tried to simplify this procedure with Jan Dhan Yojana.The scheme makes it easier for the citizens to handle financial services without bearing severe expenses.

Are you struggling to manage your finances with limited knowledge as well? Find out all about the Pradhan Mantri Jan Dhan Yojana to simplify it all!

The introduction of Pradhan Mantri Jan Dhan Yojana came as a National Mission for Financial Inclusion. It has the purpose of accessing most financial services for citizens and making it simple for them.These include basic deposit and savings accounts, credit, remittance, pension, insurance and others available with an inexpensive pay range.The Indian Prime Minister came up with the idea of the Jan Dhan Yojana to ensure that the citizens can envisage their financial activities securely across the country.

PMJDY aims at covering every household with a basic Bank Account and a RuPay Debit Card. It can have an inbuilt insurance cover worth ₹100,000. Moreover, it also includes an overdraft facility of up to ₹5,000.Furthermore, the mission of PM Jan Dhan Yojana also includes Direct Benefit Transfer under the Indian Government schemes.The long-term goal of the scheme is to extend the Financial Literacy Program to the grassroots levels of villages.

Jan Dhan Yojana is, therefore, an essential and ambitious scheme from the Indian Government.The ultimate objective is to enable the citizens to understand financial operations and conduct them without difficulties.Keeping this in mind, some of the smaller objectives of the PMJDY scheme include the following.

• Dividing each district into Sub Service Area (SSA) to ensure banking services are available to them
• Providing each household with Basic Banking Accounts and RuPay Debit cards
• Spreading financial literacy to the village levels
• Creating Credit Guarantee Fund for covering defaults in overdraft accounts
• Providing microinsurance to the eligible citizens
• Designing pension schemes like Swavlamban for the unorganised sector

The services available under the Jan Dhan Yojana have mostly been adequate for the economically weaker section of the country.In this regard, one can consider the following Pradhan Mantri Jan Dhan Yojana features to understand the scheme further.

Basic Savings Bank Deposit Account (BSBDA)

Any Indian citizen eligible to open a regular bank account can open a BSBDA.Such an account does not require any minimum balance maintenance, and the account holders can use both bank branches and ATMs for depositing and withdrawing cash. However, one cannot withdraw cash more than four times a month.

Small Account/Chota Khata Account

Under Jan Dhan Yojana, people can open small bank accounts without presenting legal documents.They can choose small accounts, which is usually valid for 12 months.The account holder will have to submit necessary documents before this period, or the account will be deactivated.Beneficiaries can deposit a maximum of ₹50,000 in such accounts. Withdrawal is limited to ₹10,000 per month.

RuPay Debit Card

PMJDY issues RuPay Debit Card to the Basic Savings Bank Account holder.It is a global card payment network widely used across India, protecting users against anti-phishing.Credit facilities on the card will be available if the accounts are operated effectively.An account holder needs to apply for a new card before the expiry date ends. It can also help utilise the domestic merchant offers (POS and Ecom) with this card.

Accidental Insurance Cover

The Jan Dhan Yojana scheme provides accidental insurance of ₹1,00,000 to the holders of non-premium cards, while those with premium cards can avail up to ₹2,00,000.People holding a RuPay Debit Card under PMJDY will be eligible for this insurance.If they successfully submit all the supporting documents within 60 days of the accident, the beneficiaries will receive the amount in their bank account.

Life Cover Insurance

The holders of a RuPay Debit Card under the PM Jan Dhan scheme can also receive life cover insurance up to ₹30,000.It will only apply to people opening bank accounts for the first time under Jan Dhan Yojana with a debit card.The person should also be the head of the family or a major earning member.This scheme will be liable to a single payment of ₹30,000 upon the death of a beneficiary.

Bank Mitra

Business Correspondent Agent or Bank Mitras under Jan Dhan Yojana are mainly responsible for advisory services to the beneficiaries.Usually, the workers of Bank Mitras include retail agents appointed by banks.It is meant for the rural areas, where bank branches are far-flung.Bank Mitras connect with the residents and guide them with banking solutions such as savings accounts, deposits, payments and withdrawals, mini account statements, etc.

A significant query that remains consistent about Jan Dhan Yojana is its eligibility criteria.So, you can check out the following list to find out if you are eligible for this scheme or not.

• Individuals should possess an Indian Nationality Status.
• Individuals aged between 18 and 59 years can apply for this scheme. If minors above ten years apply, they will require support from their legal guardians for administering their PMJDY account.
• Entities eligible for this scheme include retired bank employees, teachers and government employees. In addition, individual owners of shops, Public Call Office operators, owners of petrol pumps, agents of small scheme companies, etc., can also apply.
• State or Central Government employees, public sector employees and people with taxable income will not be eligible for life cover insurance under Jan Dhan Yojana.

Therefore, Pradhan Mantri Jandhan Yojna has been a successful attempt to help the citizens develop an interest in financial improvement.Moreover, it has kindled the interests of the rural regions towards banking with proper assistance.If you are still doubtful, the following Jan Dhan Yojana benefits can help you understand this scheme further.

• Indian citizens, particularly those residing in rural areas, can receive management assistance for their financial requirements.
• The banking process is made simple with the help of Bank Mitras, who guide the citizens regarding mobile banking usage.
• Account-holders will not have to maintain any minimum amount.
• Beneficiaries can enjoy interest on their deposits.
• Citizens without immediate access to legal documents and ID proofs can open small accounts without producing documents for at least 12 months.
• The scheme provides easy access to pensions and insurances to the beneficiaries.
• Beneficiaries can avail of an overdraft facility up to ₹10,000. However, this is only available against one account per household.
• This scheme also provides loans up to ₹5,000 to beneficiaries after completing six months of account transactions.
• Beneficiaries get up to ₹30,000 for life cover insurance in case of death within the specified term.

Eligible people applying for this scheme can enjoy all the PMJDY benefits.First, however, they need to apply for Jan Dhan Yojana following proper methods to avail the benefits. The following section discusses how they can do so.

There is no specific method for applying for Jan Dhan Yojana online. However, you can follow the steps mentioned below to apply for it in offline form. 

• Step 1- Go to the official portal of PMJDY.
• Step 2- Under the "e-documents" section, you will find live links for "Account Opening Form". Applicants can access this in both English and Hindi languages. Click on the appropriate language option.
• Step 3- This will open the form in PDF format. Download it and get a printout.
• Step 4- Fill the form manually with all your bank and personal data, including bank branch, name of town/village, block/district, Aadhaar number, profession, annual income, details of Kisan credit card and others.
• Step 5- Once you fill it, visit your nearest bank branch and submit it.

While submitting the form, you will need to produce certain documents along with your Mobile number or email Id  to qualify for the Jan Dhan Khata Yojana.The primary documents required in this case are listed below.

• Adhaar card
• Government ID proofs (Voter Card/PAN Card/Ration card)
• Permanent Address proof (Passport/Driving licence/Electricity bill/Telephone bill/Water bill)
• Passport size photograph

Hopefully, you have a clearer notion about Jan Dhan Yojana after reading this article.This scheme can be your one-stop solution if you feel like having some financial assistance without spending a lump sum.It will help you improve your banking and economic activities while giving you major benefits in these fields.