Pradhan Mantri Jan Dhan Yojana

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 to include all the people without bank accounts under a common framework and thus launched the 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 crore 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

• Access to financial services like savings/deposit bank accounts, pensions, insurances, access to loan facilities, 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 that 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 of the benefits of Aam Aadmi Bima Yojana cannot subscribe to this scheme. An individual can opt for either Aam Aadmi Bima Yojana or Jan Dhan Yojana and can avail of 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 Enroll for Pradhan Mantri Jan Dhan Yojana (PMJDY)

You can open an account under this scheme by providing the following documents:

• Aadhaar card
• Passport
• 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 a letter attested by the gazette officer can also work.

Other important things to note are:

• If your residential address changes after you have opened your account, you need to provide 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 for 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 on credit deposits and monthly withdrawal limits. The aggregate credit limit of such accounts has 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)

• A basic savings bank account is opened for an unbanked person.
• No minimum balance is required for PMJDY accounts.
• Interest is earned on deposits in PMJDY accounts.
• A RuPay Debit card is provided to PMJDY account holders.
• Accident Insurance Cover of Rs. 1 lakh (increased to Rs. 2 lakh for new PMJDY accounts opened after 28.8.2018) is included with the RuPay card issued to PMJDY account holders.
• Eligible account holders can access an overdraft (OD) facility of up to Rs. 10,000.
• PMJDY accounts qualify for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and the Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

How to Subscribe for this Scheme?

To open a bank account under this scheme, you need to fill out 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 the ‘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's details: applicant's full name, marital status, name of the father/spouse, full address along with a pin code, mobile number or 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 assets, 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 choose 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 authorize 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 Mitra’ assigned on these counters to help you with the registration process including the form and 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:

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