Pradhan Mantri Jan Dhan Yojana (PMJDY) 2023: Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner. Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
About Pradhan Mantri Jan Dhan Yojana (PMJDY)
In August 2014, the Indian government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) with the objective of providing financial inclusion to all citizens of the country. The scheme aims to provide banking services, such as a bank account, a debit card, and insurance coverage, to the unbanked population in the country. In this article, we will take a closer look at the various aspects of PMJDY.
What is PMJDY?
PMJDY is a national mission launched by the Government of India to provide access to financial services such as banking, insurance, and pension to the unbanked population in the country. The scheme was launched on August 28, 2014, and is being implemented by the Department of Financial Services, Ministry of Finance. The scheme provides for the opening of a bank account with a zero balance and provides various incentives for maintaining the account.
In order for individuals to open a PMJDY account, the below-given criteria must be met:
- Must be a citizen of India
- At least 10 years of age
- Active bank account
Documents required to open PMJDY account
In case individuals wish to open an account, viable documents must be submitted. The list of documents required for a PMJDY account under the scheme is mentioned below:
- Permanent Account Number (PAN) Card
- The National Rural Employment Guarantee Act (NREGA) issued job cards.
- Driving license
- Voter ID
Identity card with the photo which has been issued by the central or state government departments, public sector undertakings, scheduled commercial banks, public financial institutions, and statutory or regulatory authorities. A photograph that has been attested along with a letter from a Gazetted officer must be submitted.
Objectives of PMJDY
The objectives of PMJDY are as follows:
- Universal access to banking facilities to all households in the country.
- Basic banking accounts with a debit card to all unbanked individuals above the age of 10 years.
- An overdraft facility of up to Rs. 10,000 to every account holder after six months of satisfactory conduct of the account.
- Life and accident insurance cover account holders.
- Enable Direct Benefit Transfer (DBT) of subsidies and other government welfare schemes to the beneficiary’s bank accounts.
- Financial literacy among the unbanked population.
- Access to formal credit channels for the unbanked population.
- Use of digital payments and reduce the dependence on cash.
Benefits of PMJDY
The key features of PMJDY are:
1. Zero balance account: The scheme provides for opening a bank account with zero balance, which makes it easy for the unbanked population to avail of banking services.
2. RuPay debit card: Every account holder is provided with a RuPay debit card, which can be used for cash withdrawals, purchases, and online transactions.
3. Insurance cover: The scheme provides life and accident insurance cover of Rs. 2 lakhs and Rs. 1 lakh, respectively, to account holders.
4. Overdraft facility: After six months of satisfactory conduct of the account, an overdraft facility of up to Rs. 10,000 is provided to account holders.
5. DBT of subsidies: The scheme enables the transfer of subsidies and other government welfare schemes directly to the beneficiary’s bank accounts, which eliminates leakages and ensures the timely delivery of benefits.
6. Financial literacy: PMJDY aims to promote financial literacy among the unbanked population through various measures such as financial literacy camps, digital literacy, and awareness programs.
How to open a Pradhan Mantri Jan Dhan Yojana Account?
To open a Pradhan Mantri Jan Dhan Yojana Account, you need to get the application form, which is available in both English and Hindi and is available on the official website of PMJDY (https://www.pmjdy.gov.in/scheme). Fill it up and submit it along with the necessary documents. The application form is called the financial inclusion account opening form. It consists of three sections where in you need to provide details of yourself, the nominee, and the bank where the account is being opened.
Impact of PMJDY – Pradhan Mantri Jan Dhan Yojana
Since its launch, PMJDY has been a success story, with over 43 crore bank accounts opened under the scheme as of August 2021. The scheme has helped in bringing the unbanked population into the formal banking system, which has contributed to financial inclusion and empowerment. The scheme has also played a critical role in the implementation of various government welfare schemes by enabling the DBT of subsidies and benefits directly to the beneficiary’s bank accounts.
Conclusion of Pradhan Mantri Jan Dhan Yojana (PMJDY)
PMJDY has been a game-changer in the field of financial inclusion in India. The scheme has helped in bringing the unbanked population into the formal banking system and has provided them with access to banking services and financial products. The success of the scheme can be attributed to innovative features such as zero balance accounts, overdraft facilities, and insurance cover, which have made it attractive for the unbanked population. Going forward, it is essential to promote the use of digital payments and increase financial literacy among the unbanked population to make PMJDY a sustainable success story.