Pradhan mantri jan-dhan yojana, benefits, eligibility, and application process

The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a national mission aimed at providing every citizen with access to financial services such as savings accounts, deposits, remittances, credit, insurance, and pensions in an accessible and affordable manner. Under this scheme, individuals without any other bank accounts can open a Basic Savings Bank Deposit (BSBD) account through any bank branch or Business Correspondent (Bank Mitra).

Union Finance Minister Nirmala Sitharaman emphasized that universal and accessible formal banking services are essential for achieving financial inclusion and empowerment. She stated that by offering bank accounts, small savings schemes, insurance, and credit, PMJDY has transformed the banking and financial landscape of the country over the past decade.

53 Crore People Brought into the Banking System through PMJDY:

The Finance Minister highlighted that 53 crore people have been integrated into the formal banking system through Jan-Dhan accounts. These accounts hold deposits amounting to ₹2.3 lakh crore, and over 36 crore free RuPay cards have been issued, each including an accident insurance cover of ₹2 lakh. There is no fee for opening these accounts, and no minimum balance is required. She expressed satisfaction in noting that 67% of these accounts have been opened in rural or semi-urban areas, with 55% of them being held by women.

Free Bank Account and ₹2 Lakh Accident Insurance Cover under PMJDY:

PMJDY provides every adult with a basic bank account without the need to maintain a minimum balance, and at no cost. Each account holder receives a free RuPay debit card with an embedded accident insurance cover of ₹2 lakh, promoting digital transactions. Account holders are also eligible for an overdraft facility of up to ₹10,000 to cover emergencies.

Significance of PMJDY Accounts:

PMJDY accounts have been crucial not only for receiving Direct Benefit Transfers (DBT) but also for serving as a platform to receive government subsidies and payments, ensuring smooth transactions and savings accumulation without intermediaries. Furthermore, these accounts have played a significant role in providing life and accident insurance to millions of unorganized sector workers through micro-insurance schemes.

Benefits under PMJDY:

1. A basic savings bank account is opened for individuals without a bank account.
2. Interest is earned on deposits in PMJDY accounts.
3. A RuPay debit card is provided to PMJDY account holders.
4. RuPay cards issued under PMJDY include an accident insurance cover of ₹1 lakh (raised to ₹2 lakh for accounts opened after 28.08.2018).
5. Eligible account holders have access to an overdraft (OD) facility of up to ₹10,000.
6. PMJDY accounts are eligible 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 (MUDRA) scheme.