What is Pradhan Mantri Jan-Dhan Yojana (PMJDY)?
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a government program launched in 2014 with the goal of ensuring universal access to banking services.
Pradhan Mantri Jan Dhan Yojana Overview
| scheme | PMJDY – Pradhan Mantri Jan Dhan Yojana |
|---|---|
Full-Form |
Pradhan Mantri Jan Dhan Yojana |
Date of Launch |
28th August 2014 |
Scheme Objective |
National Mission on Financial Inclusion to provide universal banking access. – Ensure weaker sections and low-income groups have access to financial services such as deposit accounts, remittance, credit, banking/savings, insurance, and pensions. |
Pradhan Mantri Jan Dhan Yojana (PMJDY) Eligibility
Following is the eligibility criteria for opening a PMJDY account:
- Be a citizen of India
- Be 10 years of age or above
- Should not be a bank account holder
Special benefits attached to the scheme are:
- Interest on deposit in the savings account.
- Accidental insurance cover of Rs.1,00,000/-.
- No minimum balance is required.
(A minimum balance should be maintained to avail the cheque facility)
- For cash withdrawal from any ATM using Rupay Card, some balance is required to be kept in the account.
- Rs.30,000/- Life Insurance Cover.
- Easy money transfers to any part of the country.
- The Beneficiaries of Govt. Schemes will receive direct Benefit Transfers in these accounts.
- An overdraft facility will be given, provided that the account holder maintains the account in a good manner for six months.
- Access to Pension and insurance products
- For the Accidental Insurance Cover, RuPay Debit Card should be used at least once in forty-five days.
- Overdraft facility up to Rs.5000/- will be available in only one account per household. Preference will be given to the female account holders.
- Account-holders can check their account balance using the mobile banking app.
- It ensures to provide on CBS(Core Banking System) along with mobile banking using the USSD facilities. Call centre facility and a toll-free number is available nationwide.
Pradhan Mantri Jan Dhan Yojana (PMJDY) History
Pradhan Mantri Jan Dhan Yojana (PMJDY) introduced on August 28, 2014, PMJDY aimed to achieve widespread banking access, aspiring to have at least one basic savings bank account for every household.
The launch of PMJDY was in response to the limited financial inclusion in India at that time, where only 53% of adults had a bank account in 2014. This initiative sought to bridge the gap and offer banking services to all Indians, regardless of their income or social standing. PMJDY incorporated attractive features to encourage account holders.
The scheme experienced tremendous success in its initial years, witnessing the opening of over 200 million new bank accounts within the first year. PMJDY has played a crucial role in enhancing financial literacy in India, contributing to a notable increase in awareness of basic financial concepts, as revealed by a World Bank study.