The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a national mission for financial inclusion aiming to provide equitable access to financial services such as banking, savings and deposit accounts, remittance, credit, insurance, and pension. Any bank branch or business correspondent (Bank Mitra) outlet may open an account. Accounts for PMJDY can be opened with a zero balance.
According to the Ministry of Finance, over 4 crore bank accounts have been opened since the scheme was launched in August 2014. Individuals can take advantage of financial services such as retirement and pension plans, insurance, and banking through the PMJDY scheme. On the day of the inauguration, 15 million bank accounts were opened under this program, run by the Ministry of Finance's Department of Financial Services. According to the Guinness Book of World Records, the most bank accounts opened in one week.
Features of Pradhan Mantri Jan-Dhan Yojana
The scheme was launched on August 28, 2014. Around 59 percent of rural women in the name of women were the reason behind starting this scheme, and more than 50 percent of the accounts of facilities guaranteed in the country are the target of the scheme's launch.
There are a lot of interesting features offered under PMJDY scheme:
1. There is no need to achieve a certain level of minimum balance.
2. The interest rate depends upon the bank's savings account.
3. Money transfer is easy, fast, and convenient.
4. There is an overdraft facility open for all.
Individuals will open a zero balance account under PMJDY. However, if people want to use the check service, they must keep a certain amount of money in their account. The user will not be charged anything to open an account under the PMJDY system.
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10 Benefits of PMJDY
To open a PMJDY account, an individual must be an Indian resident and at least ten years old. Also, the applicant should not have an existing bank account. Here are a few benefits of PMJDY:
1. The RuPay scheme provides individuals with Accidental Insurance coverage of Rs.1 lakh.
2. If the account is opened between August 20, 2014, and January 31, 2015, the beneficiary can be covered for Rs.30,000 in case of death.
3. Insurance plans and pension access are available via the programme.
4. Individuals that are recipients of federal programmes should choose the Direct Benefit Transfer choice.
5. Deposits made to the scheme's bank account are rewarded with interest.
6. Individuals are not required to achieve a minimum balance in their accounts to participate in the scheme. If they choose to use the check facility, though, they must keep a minimum balance.
7. An overdraft service is available if people keep their accounts in good standing for six months.
8. One account in the household is given an Rs.5,000 overdraft facility. The lady of the house is normally the recipient of this service.
9. Only after the RuPay Cardholder has completed a satisfactory non-financial or financial operation will the Personal Accident protection be sought. Under the program, transactions made within 90 days of the accident are called PMJDY qualifying transactions. However, the transaction must be completed at an E-COM, POS, ATM, Bank Mitra, bank branch, or similar location.
10. The mobile banking feature allows account holders to check their balance.
How to Open Jan Dhan Yojana Account?
To open a Jan Dhan Yojana account, you must first obtain an application form available on the PMJDY's official website and is available in English and Hindi. Fill it out and send it in with the necessary documentation. The financial inclusion account opening form is the name of the application form. It has three parts in which you must include information about yourself, the candidate, and the bank where the account will be opened.
Documents Required to Open an PMJDY Account
Individuals who wish to open an account must have with them all the valid documentation. The following is a list of documents needed for a PMJDY account under the scheme:
1. Aadhaar Card
2. PAN (Permanent Account Number) Card
3. Work cards are distributed under the National Rural Employment Guarantee Act (NREGA).
5. Driving License
6. Voter ID
7. Identity card with the photo provided by central or state government offices, public sector undertakings, scheduled commercial banks, public financial institutions, and legislative or regulatory authorities
8. A photograph must be sent that has been attested, as well as a letter from a Gazetted official
The Pradhan Mantri Jan Dhan Yojana forum offers universal banking access, including at least one basic banking account for each family, credit savings, and pension facilities. It applies to both urban and rural areas and achieves financial inclusion for everyone by offering universal banking accounts and debit cards with built-in accident cover. The PMJDY scheme serves as an important example of good governance.
While there are many benefits of the Pradhan Mantri Jan Dhan Yojana, there are other plans that you can check out such as Guaranteed Income4Life Plan by Canara HSBC Life Insurance. It has three options for customers to choose from depending on their needs. Guaranteed Income, Guaranteed Long-term Income, and Guaranteed Life-long Income are the three options. All of these options offer its customers:
- Guaranteed regular income up to 10 years.
- Premium Protection Cover
- Options to cover your spouse
Select the one that suits you the best as both have full potential to cater to your needs. These are fully flexible life insurance packages that allow for different terms/premium payment plans, among other things, to match the plan to an individual's different life stages.