Pradhan Mantri Jan Dhan Yojana (PMJDY), is a flagship initiative of the Government of India that aims to promote financial inclusion and empowerment across the country. Through this scheme, millions of unbanked individuals, especially from marginalized communities, have gained access to essential banking services, thereby transforming their lives and contributing to the socio-economic development of India. This scheme Launched in August 2014 by the Government of India
What is PMJDY – Pradhan Mantri Jan Dhan Yojana?
The Pradhan Mantri Jan Dhan Yojana, launched in August 2014, is a major initiative to ensure that every household in India can easily use banks. It helps people open bank accounts, get debit cards, insurance, and learn about handling money. The aim is to include everyone, especially those who haven't had access to banking before, so they can benefit from the formal financial system.
Additionally, beneficiaries receive a RuPay Debit card with built-in accident insurance coverage of ₹1 lakh. The plan also involves directing all government benefits (from the central, state, and local levels) to beneficiaries' accounts, supporting the Union Government's Direct Benefits Transfer (DBT) scheme, and resolving technological challenges like poor connectivity and online transactions. Mobile transactions through telecom operators and their established centers as Cash Out Points are also part of the financial inclusion strategy. Moreover, efforts are underway to engage the youth of the country in this mission-oriented program.
Benefits of PMJDY – Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Jan Dhan Yojana (PMJDY) includes several benefits that have significantly impacted the socio-economic landscape of India. Here are some of the key benefits of PMJDY:
Financial Inclusion : PMJDY is a national mission on financial inclusion that involves an integrated approach to bring about comprehensive financial inclusion of all households in the country. The scheme envisages universal access to banking facilities for every household with at least one basic banking account, financial literacy, access to credit, insurance and pension facility. Additionally, beneficiaries will get a RuPay debit card with a built-in accident insurance cover of Rs 1 lakh. The scheme also envisages delivery of all government benefits (from Centre/State/Local body) to the accounts of beneficiaries and take forward the Direct Benefit Transfer (DBT) scheme of the Central Government.Technical issues like poor connectivity, on-line transactions will be resolved. The scheme also plans to use mobile transactions as cash out points through telecom operators and their established centers for financial inclusion. Besides, efforts are also being made to reach out to the youth of the country to participate in this mission mode programme.
Zero-Balance Accounts : One of the exceptional features of PMJDY is the provision of zero-balance accounts, which eliminates the need for individuals to maintain minimum balance. This has made banking more accessible to low-income households and marginalized communities, thereby promoting greater financial inclusion.
RuPay Debit Card : Every PMJDY account holder gets a RuPay Debit Card, which enables them to conduct cashless transactions, withdraw money from ATMs and make online payments. The wide distribution of debit cards has facilitated greater convenience and security in financial transactions for the beneficiaries.
Insurance Coverage : PMJDY offers accidental insurance coverage to account holders, providing financial protection in case of unexpected accidents or emergencies. This insurance coverage ensures that vulnerable individuals and families have access to financial support in times of crisis, thereby reducing financial risks and vulnerabilities.
Direct Benefit Transfer (DBT) : This scheme facilitates direct transfer of government subsidies, pensions, scholarships and other welfare benefits to the bank accounts of beneficiaries. By leveraging the DBT mechanism, PMJDY ensures efficient and transparent delivery of social welfare schemes, minimizes leakages and reduces corruption.
Overdraft Facility : PMJDY now includes an overdraft facility for eligible account holders, allowing them to access credit to meet short-term financial needs. This feature provides a safety net for individuals facing unexpected expenses or emergencies, enabling them to manage their finances more effectively.
Financial Literacy and Awareness : PMJDY conducts comprehensive financial literacy and awareness campaigns to educate account holders about the benefits of banking services, importance of savings, responsible borrowing and other financial concepts. By promoting financial literacy, the scheme empowers individuals to make informed financial decisions and build a secure financial future.
Promotion of digital payments : PMJDY has played an important role in promoting digital payments and cashless transactions across the country. By providing RuPay debit cards and encouraging account holders to adopt digital banking channels, the scheme has contributed to the government's efforts to create a less-cash economy and enhance financial digitization.
Documents required for PMJDY – Pradhan Mantri Jan Dhan Yojana
To open an account under the Pradhan Mantri Jan Dhan Yojana (PMJDY), individuals are generally required to provide certain documents as part of the account opening process.
Aadhar Card
Pan Card
Driving License
Voter Id
Eligibility for PMJDY – Pradhan Mantri Jan Dhan Yojana
The eligibility criteria for opening an account under the Pradhan Mantri Jan Dhan Yojana (PMJDY) are designed to ensure that the benefits of the scheme reach those who need financial inclusion most.
All citizens of India are eligible to open an account in this scheme
Applicant's age must be at least 10 years old
