The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a comprehensive financial inclusion program launched by the Government of India with an aim to ensure access to financial services, namely banking, savings & deposit accounts, remittance, credit, insurance, and pension in an affordable manner. This program has played a key role in the integration of large sections of Indian society into the formal banking system.
PMJDY – Objectives
PMJDY’s primary objectives include:
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Banks are available to all: RuPay Debit Card with Accident Insurance Coverage of Rs. 1 lakh.
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Financial Literacy: Informing people about the advantages of financial products.
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Create a Credit-Ready Society By providing overdrafts after a satisfactory six-month operation of the account.
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Micro-Insurance: Micro-insurance to unbanked populations.
- Unorganized Sector Pension Schemes Like Swavalamban: Encouragement of participation in pension schemes to ensure financial security for the elderly.
PMJDY Features
- Null Balance requirement: You can open a new account with no balance. However, the facilities may be restricted.
- RuPay Card Debit: The card is issued for merchant and cash transactions.
- Direct Benefit Transfer (DBT): Direct transfers of funds from the Govt. Allows direct transfers of funds from Govt.
- Overdraft Facility: After six months of successfully operating the account, it becomes eligible for an Overdraft Up to Rs.10,000. 10,000.
- Accident Insurance Coverage: Accidental insurance of Rs. RuPay Card offers an accidental insurance cover of Rs.
- Life Cover Life cover for Rs. A death benefit of Rs.
Significant Achievements
According to recent updates
- Account openings More than 40 million bank accounts in rural and urban areas have been opened through the PMJDY.
- Women Account Holders Women account holders make up approximately 55%, which promotes financial empowerment.
- Zero-balance Accounts: At first, these accounts had a large number of zero-balanced accounts. However, the active use has grown significantly.
PMJDY Impact
- Ease of Financial Inclusion PMJDY increased dramatically the percentage of Indian adults that own bank accounts.
- Empowerment Through Financial Services Women and marginalized groups, in particular, can now access financial services through bank accounts.
- Plus-Message: This scheme promotes savings habits in the poor.
- Social Security The government can securely transfer funds directly to the recipients without intermediaries.
- Digital Transactions Promotion: Encourages the transition to digital economy after demonetization of 2016.
What lies ahead?
PMJDY is a great step forward, but there are still many challenges, including the dormant account, a reliance on cash that persists, and poor financial literacy. The future lies in a continued focus on digital transactions and education of beneficiaries.
PradhanMantri Jan Dhan Yajana FAQs
What is required to open an account with PMJDY?
Answer: Indian citizens aged over 10 can open PMJDY accounts at any Business Correspondent outlet (Bank Mitr).
How do I open an account with PMJDY?
Answer: Open an account at a bank branch near you or with a Business Representative. Bring the KYC documentation and a duly completed application.
What is the maximum number of deposits that can be made in my PMJDY?
Answer: The number of deposits is not limited. There may be a limit on withdrawals, depending on bank policy.
Is it possible to transfer money from PMJDY account into other accounts?
Answer: Money can be moved from regular accounts into a PMJDY as well.
When the PMJDY Account Holder dies, what happens to their account?
Answer: After the death of a account owner, the money in the account will be paid to the nominee appointed by him. The legal heirs are paid if there isn’t a nominee.
A minor can open a PMJDY Account?
Answer: Minors can be opened a PMJDY under the supervision of their parents/guardians.
What are some of the immediate benefits that come with a PMJDY?
Answer: The benefits that come with a PMJDY include overdraft facilities and insurance cover, as well as eligibility for government funded welfare programmes.
Is there a charge for keeping a PMJDY?
Answer: There are minimal or no fees for the maintenance of a PMJDY Account.
What is the function of the PMJDY overdraft facility?
Answer: The account holder can get an Overdraft of up to 10,000 Rs. After six months of satisfactory account operation, eligible holders can avail themselves of an overdraft facility up to Rs. The facility aims to provide microcredits to the beneficiaries.
Pradhana Mantri Jan-Dhan Yojana, a financial inclusion initiative, represents a significant step forward in achieving the goal of financial inclusion. The program directly impacts the lives of millions Indians.
