What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?
This scheme was launched by the government of India for those who do not have bank accounts. The main objective of this scheme is ‘financial inclusion’. The government aimed at including all the people without bank accounts under a common framework and thus launched Pradhan Mantri Jan Dhan Yojana nationwide. This scheme was officially launched on 14th August 2014. As per the reports released by the Ministry of Finance, around 4 crores bank accounts have been opened till September 2014 as an initiative taken under the scheme.
Main features of the Pradhan Mantri Jan Dhan Yojana scheme are
- Access to financial services like savings/deposit bank accounts, pensions, insurances, access to loan facility, and remittances.
- You can open a bank account with any bank or business outlet with this scheme.
- You can even open a zero (0) bank balance account.
- Additionally, you can also avail the facility of cheque book if you fulfil the minimum balance criteria for cheque book.
- Under this scheme, the subscriber will be given a RuPay debit card if they open a bank account which is compatible with all the ATMs for withdrawals.
Eligibility of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme
Go through the list mentioned below to check if you are eligible or not eligible to open a bank account under this Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.Who is eligible?
- According to the rules, a person needs to open a bank account between 15th August 2014 to 26th January 2015 and the period can be extended by the discretion of the Indian Government.
- The person should normally be the head of the family and should be between the age bracket of 18 to 59 years. If a second person is also earning in the family then he can only apply for the scheme if the head of the family is above 60 years.
- It is imperative that your RuPay and biometric be linked to your bank account for successful registration to the scheme. Even if it’s not, you should initiate the process of linking before enrolling in the scheme.
- Any bank account including a small account can work for this scheme.
- A life cover of Rs. 30,000 will be provided for a period of 5 years, i.e, till the FY 2019-2020 under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.
Who is not eligible?
Employees of the central and state governments are not allowed to apply for this scheme. For specifics, check the list mentioned below:
- Employees (current/retired) and their family members of the state government, Central government, public sector undertakings, public sector banks and any entity jointly held by the state and the central government are not eligible to apply for the scheme.
- Anyone who qualifies to pay taxes under the Income Tax Act of 1961 is not eligible to apply for the scheme. Additionally, family members of an income tax paying person are also barred.
- A person availing the benefits of Aam Aadmi Bima Yojana cannot subscribe for this scheme. An individual can opt for either Aam Aadmi Bima Yojana or Jan Dhan Yojana and can avail benefits accordingly. This goes for the family members of an individual also.
- Anyone who fails to meet the requirements of the yojana is also not allowed to subscribe to the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.
Documents required to enrol for Pradhan Mantri Jan Dhan Yojana (PMJDY)
You can open an account under this scheme by providing the following documents:
- Aadhaar card
- Driving license
- PAN (Permanent Account Number)
- Election Commission issued Voter Id
- Any other legal document notified by the government along with the regulator
- 2 passport size photographs
For a normal person identification, these documents can also be used for the verification process:
- Any legal document carrying the photo of the applicant which is issued by any state or central government departments, public sector undertakings, public financial institutions, authorised commercial banks, and statutory/regulatory authorities.
- A letter with the applicant’s self-attested photograph and letter attested by the gazette officer can also work.
- If your residential address changes after you have opened your account, you need to provide the proof of your residential change to shift your account to the new address.
- If you don’t have any proof of your residential address, then you can submit any valid government-issued identity card.
- In case you don’t have any valid documents needed to open a bank account under this scheme, then you can open a ‘small account’. This notification was released by the Reserve Bank of India in 2014.
Small Account under Pradhan Mantri Jan Dhan Yojana (PMJDY):
The only basic requirement of opening this account is a self-attested photograph of the person along with doing signatures or giving thumbprints in the presence of the bank official. Small accounts come with certain limitations of credit deposits and monthly withdrawal limits. The aggregate credit limit of such accounts have been set at Rs. 1 lakh per year and the withdrawal limit has been set at Rs. 10,000 per month. Additionally, the amount in your account should not cross the threshold of Rs. 50,000 at any time. These accounts come with an expiry period of 1 year after which they are closed. However, the validity of these accounts can be extended to a period of 12 months only if the applicant can prove that he/she has applied for the ‘Valid documents’ required to open an account under this scheme within 12 months of opening a small account.
Advantages of Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Access to insurance facility Under this scheme, the subscriber’s are entitled to accidental insurance cover and a life cover. A life cover of Rs. 30,000 is given upon the death of the subscriber but that is subject to certain terms and conditions. This gives accidental insurance of Rs. 1 lakh to the subscriber.
- Access to loan If you are a subscriber of this scheme, they can avail credit for Rs. 5,000. This loan facility is extended to one account per household. But this is available after a successful operation of your account for a period of six months. Credit extended is not a huge amount but the subscribers can use it or reinvest it in other agricultural schemes. The loan extended under this scheme has zero processing fee and the loan amount can be extended if the previous loan repayments have been done on time.
- Mobile banking associated with the bank account With the mobile banking facility, the subscribers can check the account balance and can transfer funds from anywhere in India.
- Interest If you are a subscriber and open an account under this scheme, you are entitled to earn interest on the deposits in the account.
- No minimum balance The subscriber’s don’t have to maintain a minimum balance in their PMJDY bank accounts.
- Direct Benefit Transfer For the government scheme, subscribers are entitled to direct transfer benefit.
- Access to other facilities Once you open an account under this Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, you can avail of pension and insurance.
How to subscribe for this scheme?
To open a bank account under this scheme, you need to fill the form and submit it to any bank with the required documents. The registration form is available on the official website of Pradhan Mantri Jan Dhan Yojana. The form is officially known as ‘Financial Inclusion Account Opening Form’. This form is available in two languages: Hindi and English so you can choose whatever format suits you. The forms are available online in both Hindi and English language.
Pradhan Mantri Jan Dhan Yojana registration or application form
The sections mentioned below are to be filled in the form.
- Applicant details: applicant's full name, marital status, name of the father/spouse, full address along with a pin code, mobile number or the telephone number, the applicant’s Aadhaar number and MNREGA job card . Along with all these details, the applicant also needs to put in the occupation and annual income generated. You might also have to put in details about the dependants, details of your asset, and Kisan credit card details if any.
- Bank details: you should provide details of the bank where the account is being opened. Details like the name of the bank’s branch, the applicant’s name, complete address including the district name, state name, village/town code, and SSA code/ ward number.
- Details of your nominee: it is important that you are choosing a nominee at the time of registration. You will have to provide the name of the nominee, relationship with the applicant, age and date of the nominee in case the nominee is a minor. Along with this, you also need to authorise a person probably a guardian in case the applicant’s nominee dies.
Registration process or process to apply for Pradhan Mantri Jan Dhan Yojana (PMJDY)
To register for the Jan Dhan Yojana, you need to fill the registration form and submit it to any bank where you want to open an account. Usually, the banks extending this facility have a separate counter dealing with Jan Dhan Yojana. There are dedicated professionals called ‘Bank Mitr’ assigned on these counters to help you with the registration process which includes the form along with the documents required.
With the duly filled form, you need to attach documents proving your identity and residence. If you have a valid Aadhaar card, then you just need to attach that with your form and then you won’t need anything else. You also need to attach two of your recent passport size photographs with the application form.
Once you have submitted all your documents, you will be notified about your successful application within a few days. After you have opened your account, you will be entitled to receive a cheque book, a passbook, and a RuPay debit card which can be used at the ATMs. Some banks might even provide you with a Jan Dhan Information kit which will contain extensive details of the scheme.
Claim settlement procedure under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme
- Upon the death of the account holder, an amount of Rs. 30,000 is paid to the next account holder but he/she should be between the age of 18 to 60 years.
- Any branch of the concerned bank will take the claim forms. These forms then will be forwarded to LIC’s Pension and Group scheme unit for further processing.
- The amount will be paid to the nominee selected during the registration process in their respective bank account.
- The amount will preferably be transferred in the bank account via online payment gateways like NEFT or APBS.
Banks offering Pradhan Mantri Jan Dhan Yojana (PMJDY):
Check the table below to know some public and private sector banks offering this scheme:
|Private Sector Bank||Public Sector Bank|
|HDFC Bank||Allahabad Bank|
|Axis Bank||Bank of Baroda|
|ICICI Bank||Bank of India|
|Kotak Mahindra Bank||Dena Bank|
|YES Bank||Canara Bank|
|IndusInd Bank Ltd||Punjab National Bank|
Customer Support for Queries
If you have any queries about the scheme or you are stuck somewhere in the process, you can call on these toll-free numbers mentioned below. 1800-11-0001 and 1800-180-1111.
Frequently Asked Questions
Q- Can a joint account be opened under Pradhan Mantri Jan Dhan Yojana?
Yes, a joint account can be opened under Pradhan Mantri Jan Dhan Yojana.
Q- Is there a mandatory period within which I need to use my Accidental insurance cover and RuPay debit card?
Ans. Yes. After opening the bank account, the subscriber should use the accidental insurance cover and RuPay debit card at least once within the time gap of 45 days.
Q- Why do we use a RuPay debit card under this scheme?
Ans. RuPay debit cards come with the added advantage that it allows people to have access to an accidental insurance cover of at least Rs. 1 lakh with no added costs.
Q- Will my family be eligible for multiple accidental insurance cover if I have multiple PMJDY accounts?
Ans. It is not possible for a family to receive multiple accidental insurance cover even if you have multiple accounts under this scheme. Only one account will be considered eligible and according to that account, accidental insurance cover will be extended to one person from the family.
Q- Can a minor person open an account under this scheme?
Ans. Yes, a minor person can open an account under this scheme with proper guidance from the elders.
Q- Minors of what age are eligible to apply and do they get access to RuPay card?
Ans. A minor should be of age 10 and no less than that to be eligible to apply for the scheme. Yes, even minors are eligible to get a RuPay debit card and they can withdraw cash four times a month.
Q- What is the difference between Pradhan Mantri Jan Dhan Yojana and Swabhimaan scheme?
Ans. Pradhan Mantri Jan Dhan Yojana is household centric scheme whereas Swabhimaan, the earlier financial inclusion plan was village centric. The new financial inclusion scheme (PMJDY) focuses on rural as well as urban areas. The Swabhimaan scheme only targeted villages with more than 2000 people whereas PMJDY focuses on the financial inclusion of the entire nation. This is made possible by extending banking facilities to every area/village.
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