What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?

PMJDY is a nationwide scheme launched by the Government of India to ensure financial inclusion of every individual who does not have a bank account in India. This scheme aims at providing access to financial services, namely, Banking / Savings & Deposit Accounts, Remittance, Credit, Insurance, and Pension in an affordable manner to all. This scheme was launched in August 2014 and according to reports by the Ministry of Finance, around 4 crore bank accounts have been opened under this scheme till September 2014.

Who Offers This Scheme?

Both public and private sector banks offer this scheme, thus individuals can easily open their accounts under PMJDY with any lender. Further, accounts opened under PMJDY can be opened with Zero balance. However, if the account-holder wishes to get a cheque book, he/she will have to fulfill minimum balance criteria. The account holders under this scheme will be given a RuPay debit card which can be used across all ATMs for cash withdrawal.

PMJDY Eligibility

An individual must fulfill the below eligibility criteria before opening the account:

  • The account can only be opened by an Indian citizen
  • An individual can consider opening an account under this scheme with any bank branch or Business Correspondent (Bank Mitr) outlet.
  • The savings account can be opened at a bank by minors who are above the age of 10 years old. 
  • The account opening form is available in both english and hindi and can easily be downloaded from the official website of PMJDY (https://pmjdy.gov.in/)

Documents Required to Open PMJDY Account

  • The passport
  • The driving license
  • The Permanent Account Number (PAN) Card
  • The Voter’s ID issued by Election Commission of India
  • The Aadhar Card
  • Any other documents that have been requested by the central government after consulting with the regulator must be submitted.
  • A photograph that has been attested along with a letter from a Gazetted officer must be submitted.
  • Any ID card that has been issued by the State or Central Government, Scheduled Commercial Banks, Statutory or Regulatory Authorities, Public Financial Institutions, and Public Sector Undertakings must be submitted. However, the ID card must have a photo of the applicant present on it.

Zero Balance Requirements

To open a Jan Dhan account is free of cost and does not require any amount to be deposited initially. Most savings bank accounts require an initial deposit to open a bank account and also a minimum balance to be maintained on a monthly or quarterly basis. But with a Jan Dhan account, these requirements are done away with so that anyone can open this account even if they do not have money to deposit right away.

Interest on Deposits

Deposits made into the Jan Dhan accounts are eligible to earn interest at the rate declared which is subject to change from time to time. Interest rates will be similar to that offered by various public and private banks.

Cheque Book Facility

Account holders can avail a cheque book from their bank if they require. This will be helpful in making payments without cash. To get a cheque book, there is a minimum balance required in the account.

Savings for the family

The Jan Dhan scheme provides for an account for each family. This facility ensures they have some form of financial inclusion that allows them to start saving and growing their money.

Debit Card Facility

Along with the Jan Dhan bank account, every family will get a RuPay debit card. This gives account holders easy access to their money when they need it. They can deposit the money and earn interest on it and withdraw it from an ATM when the need arises.

Overdraft Facility

After completing six months of satisfactory operations of the Jan Dhan account, an overdraft facility of Rs.5,000 might be offered. In case the overdraft availed is paid back promptly, the bank may increase this limit to Rs.15,000, at its own discretion. Although the loan amount seems insignificant as compared to that offered as a standard loan by various banks, it is quite substantial when we think of the economic status of individuals that this scheme is aimed at uplifting. The Pradhan Mantri Jan Dhan Yojana targets the economically weaker section of the society. Most importantly, it aims to cover people from the rural areas as well as the unorganised sector of the urban and semi-urban areas.

Aadhaar-Linked Account

Pradhan Mantri Jan Dhan Yojana is an aadhaar-linked scheme which helps avoid fraud related to account opening. Individuals who receive various benefits under various government schemes like LPG subsidy can now receive the amount directly into their PMJDY accounts. Aadhaar-linking ensures transparency, eliminates fraud and proves to be highly beneficial for the government and the citizens.

Personal Accident Insurance

The scheme also provides for personal accident insurance under the following conditions: The Rupay card holder must have performed at least one financial transaction successfully within 90 days from the date of the accident. Non-financial customer-induced transactions will also be included. Transactions should be carried out at any bank branch, bank mitra, ATM, POS, or E-com channel. This accident insurance is provided under the Rupay Insurance Program 2016-17.

Aadhaar-Linked Account

Pradhan Mantri Jan Dhan Yojana is an aadhaar-linked scheme which helps avoid fraud related to account opening. Individuals who receive various benefits under various government schemes like LPG subsidy can now receive the amount directly into their PMJDY accounts. Aadhaar-linking ensures transparency, eliminates fraud and proves to be highly beneficial for the government and the citizens.

Access to Pension Schemes

Holding a Jan Dhan account will provide easy access to pension schemes available from the government. It is important for every citizen to start saving even a small amount to ensure a dignified old age.

Easy Transfers

Pradhan Mantri Jan Dhan account can be used to transfer money to and from various other public and private banks across the country. Account transfer for Pradhan Mantri Jan Dhan Yojana can be done from one bank in the country to another. This is possible since all participating banks are connected via the core banking solution or CBS.

Banks That Provide the PMJDY Scheme

Individuals can open an account under the PMJDY scheme at both public and private sector banks. Given below are the list of banks that participate in the scheme:

Private Sector Banks:

  • Dhanlaxmi Bank Ltd.
  • YES Bank Ltd.
  • Kotak Mahindra Bank Ltd.
  • Karnataka Bank Ltd.
  • IndusInd Bank Ltd.
  • Federal Bank Ltd.
  • HDFC Bank Ltd.
  • Axis Bank Ltd.
  • ICICI Bank Ltd.

Public Sector Banks:

  • Oriental Bank of Commerce (OBC)
  • Union Bank of India
  • Allahabad Bank
  • Dena Bank
  • Syndicate Bank
  • Punjab & Sind Bank
  • Vijaya Bank
  • Central Bank of India
  • Punjab National Bank (PNB)
  • Indian Bank
  • IDBI Bank
  • Corporation Bank
  • Canara Bank
  • Bank of India (BoI)
  • Bank of Maharashtra
  • Andhra Bank
  • Bank of Baroda (BoB)
  • State Bank of India (SBI)

Frequently Asked Questions (FAQs)

Q. Is the PMJDY account as same as the BSBD account? 

A.PMJDY accounts are BSBD accounts in nature with an additional facility of RuPay Debit card with accident insurance coverage and overdraft facility. 

Q. What documents do I require to open an account under Pradhan Mantri Jan-Dhan Yojana (PMJDY)? 

A.To open a PMJDY account, an individual is required to submit the required KYC documents to the bank branch/ Business correspondent. 

Q. If there are no KYC documents can the PMJDY account be opened? 

A. Yes, a Small Account can be opened. 

Q. What are the limitations on Small Account? 

A.Small Accounts have following limitations: 

  • The aggregate of all credits in small accounts cannot exceed Rs. 1 Lakh in a financial year.
  • The aggregate of all withdrawals and transfers in small accounts cannot exceed Rs. 10,000 in a month. 
  • Balance in the small account at any point of time cannot exceed Rs.50,000. 

Q.How can I convert a Small Account into a regular BSBD account under PMJDY? 

A. If a customer wants to convert his/her Small Account into a regular BSBD account under PMJDY, he /she has to request his/her bank along with the submission of the required Know Your Customer (KYC) documents. 

Q. Can I open a Joint account under Pradhan Mantri Jan Dhan Yojana? 

A.Yes, a joint account can be opened. 

Q. Can I avail subsidies/Direct Benefit transfer (DBT) under various schemes of the Government through my PMJDY account? 

A. Yes.

Q. How can I link my Mobile Number with my Bank Account? 

A. Mobile Number of an account holder is entered in a customer’s account by the Bank on the basis of request/ information by the customer.