Under the National Mission of Financial Inclusion, Government of India launched the “Pradhan Mantri Jan Dhan Yojna (PMJDY) on 28th August 2014, with an purpose to provide access to basic Banking facilities with one account to every household, financial literacy, access to credit, insurance and pension.
What is Pradhan Mantri Jan-Dhan Yojana (PMJDY)?
PMJDY has been introduced to provide a platform for three social security schemes i.e., Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY) and Pradhan Mantri Mudra Yojana (PMMY).
The Government initially Introduced this scheme for Four years till 28/Aug/2018 and later decided to extend the PMJDY program beyond 28/Aug/2018 with some changes in the scheme, such as:
- Focusing on accounts opening from “every household” to “every adult”.
- Extending Over Draft (OD) limit from INR 5,000 to INR 10,000.
- No conditions attached for active PMJDY accounts availing OD upto INR 2,000.
- Age limit for availing OD facility revised from 18-60 years to 18-65 years.
- The accidental insurance cover for new RuPay card holders raised from INR 1 lakh to INR 2 lakh in new PMJDY accounts opened after 28/Aug/2018.
Other Benefits of the Scheme:
- Interest on deposit.
- Accidental insurance cover of INR 2 lakhs.
- No minimum balance required.
- Life Insurance cover of INR 30,000/- payable on death of the beneficiary, subject to fulfilment of the eligibility condition.
- Easy Transfer of money across India
- Benefits of Government Schemes will get Direct credit in these accounts.
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
- Access to Pension, insurance products.
- The Claim under Personal Accidental Insurance under PMJDY shall be payable if the Rupay Card holder have performed minimum one successful financial or non-financial customer induced transaction at any Bank Branch, Bank Mitra, ATM, POS, E-COM etc. Channel both Intra and Inter-bank i.e. on-us (Bank Customer/rupay card holder transacting at same Bank channels) and off-us (Bank Customer/Rupay card holder transacting at other Bank Channels) within 90 days prior to date of accident including accident date will be included as eligible transactions under the Rupay Insurance Program 2019-2020.
- Overdraft facility upto INR 10,000/- is available in only one account per household, preferably lady of the household.
PMJDY scheme is National Mission for Financial Inclusion to ensure access to financial services such as; Banking, Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. Account under this scheme can be opened in any Bank branch or Business Correspondent (Bank Mitr) outlet. Accounts opened under PMJDY are offered with Zero balance. If the account-holder wishes to get cheque book, he/she can avail the same by fulfilling minimum balance criteria offered by the Bank.