Everything About Pradhan Mantri Jan Dhan Yojana – Application Process, Eligibility, Benefits, etc!
The Pradhan Mantri Jan Dhan Yojana is considered one of the world’s greatest financial inclusion efforts. This funding scheme was introduced by the Respected Prime Minister Mr. Narendra Modi with the aim of financial inclusion. The system guarantees affordable access to various financial services like bank accounts, savings, remittances, insurance, credit, and pensions for the nation’s poor and marginalised population.
Financial inclusion aims to make financial services accessible to low-income groups in society at reasonable prices. The scheme is an original idea in that area, aiming to encourage banking engagement among those who are financially excluded and reduce poverty.
We have discussed the key features & benefits of the Pradhan Mantri Jan-Dhan in this article.
About Pradhan Mantri Jan Dhan Yojana
To offer financial services and goods to people without access to a bank account, the Indian government established the PMJDY Funding Scheme.
- No minimum balance must be kept.
- Money transfers are easy.
- According to the interest rate on a bank’s savings account
- Access to an overdraft facility
What do you mean by Pradhan Mantri Jan Dhan Yojana?
Through this funding program, a person may open a bank account at any Business Correspondent location or bank branch. These are zero-balance accounts, thus no minimal balance requirement, but the account user must meet the requirements for a minimum balance to use the fundamental banking amenities, such as a check book, etc.
Significant pillars of the Funding Scheme:
- Access to banking services is available to every household.
- Basic savings bank accounts with a 10,000 rupee per household overdraft facility.
- Village-level program for financial literacy.
- The establishment of a Credit Guarantee Fund to cover defaults in Overdraft Accounts.
- Insurance: life insurance coverage of up to Rs. 30,000, and Accidental death coverage of up to Rs. 1,00,000 on accounts created between 15th, 2014, and 31st Jan 2015.
- Pension plans like Swvlamban are offered through business correspondents for the unorganized sector.
Advantages of the PMJDY Funding Scheme
We have listed some of the major advantages of the PMJNY:
- On contributions placed into savings accounts created as part of the program, interest is offered.
- Under the program, you’re not obligated to keep a certain minimum balance. The check facilities, however, require that you have a minimal balance.
- If you maintain accurate records for your accounts for 6 months, an overdraft facility is provided.
- Under RuPay, you will get insurance coverage in case of an accident for Rs 1 Lakh.
- The program offers access to pensions and insurance goods.
- There is an option for Direct Benefit Transfer for people who are recipients of government schemes.
- One account in the household has access to a 5,000-rupee overdraft facility. The female member of the home is typically given access to the facility.
- Only once the RuPay Card bearer has completed a successful financial or non-financial transaction may the Personal Accident protection be used. The scheme defines transactions as PMJDY eligible if they are completed within 90 days of the accident. Nevertheless, the transaction must be completed at a bank branch, E-COM, ATM, POS, or Bank Mitra.
- The Net banking feature allows account holders to check their balance.
What paperwork is needed to start an account with PMJDY?
- There is no need for any further documentation if a person has an Aadhaar Number or Aadhaar Card. A self-certification of the present address will work if the address is updated.
- Any of the above documents—a passport, driver’s licence, voter ID card, PAN card, and NREGA card—will be legally recognised in the absence of an Aadhaar card. The “Proof of Address & Identity” will also be served by these documents if they contain the person’s address.
- The person is deemed to be at “low risk” by the banks if none of the aforementioned documents are present. Then, after presenting any of the listed below documents, they can create a bank account:
- Identity cards issued by state or federal government agencies, regulatory or statutory bodies, public sector organisations, public financial institutions, and scheduled commercial banks with the aspirant’s photograph;
- letter from a gazette officer bearing a properly authenticated portrait of the subject.
List of Banks that offer Pradhan Mantri Jan Dhan Yajna Scheme
You can create your bank account and apply for the Pradhan Mantri Jan Dhan Yojana through any of the public & private sector banks:
List of Public Sector Banks:
- Union Bank of India
- Oriental Bank of Commerce (OBC)
- Allahabad Bank
- Syndicate Bank
- Dena Bank
- Punjab & Sind Bank
- Central Bank of India
- Vijaya Bank
- Indian Bank
- Punjab National Bank (PNB)
- IDBI Bank
- Canara Bank
- Corporation Bank
- Bank of Maharashtra
- Bank of India (BoI)
- Andhra Bank
- State Bank of India (SBI)
- Bank of Baroda (BoB)
- List of Private Sector Banks
- YES Bank Ltd.
- Dhanalaxmi Bank Ltd.
- Kotak Mahindra Bank Ltd.
- ING Vysya Bank Ltd.
- ICICI Bank Ltd.
- Axis Bank Ltd.
- Karnataka Bank Ltd.
- IndusInd Bank Ltd.
- HDFC Bank Ltd.
- Federal Bank Ltd.
Eligibility Conditions for PMJDY Funding Scheme
The following requirements must be satisfied for anyone to open a PMJDY account:
- You must be an Indian citizen.
- The minimal age requirement is 10 years.
- There should be no bank account for you.
ESSENTIAL ENABLERS OF THE PLAN
The government concentrated on streamlining the banking sector through institutional coordination and alignment of governmental departments with the scheme’s goals to ensure the scheme must be implemented successfully.
Since the launch of the program, government agencies, including the PMO- prime minister’s Office, have been actively involved. Large public-sector banks (PSBs) are mostly owned by the central government, which also serves as the scheme’s principal sponsor and assisted in its implementation and execution among PSBs nationwide. The PMO keeps tabs on the program’s development through weekly video conference meetings with the senior bureaucrats in charge of it. All banks are obligated to attend these meetings and share data on their operations, significant problems they are currently facing, and potential solutions.
The existence of sizable financial institutions in the nation is another element that helped the strategy succeed. One of the biggest banking systems in the world is found in India, which has 45 foreign banks, 56 rural regional banks, 22 private sector banks, 12 public sector banks, and many smaller cooperative banks. The same offerings & standards were applied to the program at all of these institutions. This aided in establishing consistent interaction with customers and expanding the scheme’s reach.
Application Method for PMJDY Funding Scheme
From the PMJDY website, you can directly access the application form, fill it out, and hand it in at your neighborhood bank branch. To use this program, you must additionally provide certain supporting documentation with the application.
The PMJDY Funding Plan is a fantastic and cutting-edge program that will improve social security in the nation and guarantee that every person is financially connected.
By providing a savings account to every family in the country, whether they live in a semi-urban, urban, or rural area, the program tries to encourage residents to save money. The plan also includes interconnected accidental insurance & life insurance coverage. This will make millions of Indians who would not otherwise be able to buy insurance eligible for safety.
Steps to follow to apply for the PMJDY Funding Scheme
- To create an account for PMJDY, you will have to download the application form from the authorised website of the PMJDY. To download a PDF file, you can choose the language of your choice.
- You must enter the bank code, and bank’s name in the form that has been downloaded. Update the village and town names, bank branch, subdistrict & block names, state, district, ward number and village code, SSA code, and town code as well.
- Complete the form by providing essential data such as your name, occupation, residence, Aadhaar Card number, existing family bank accounts, annual income, and Kisan credit card information.
- Additionally, you need to check the box if you want to get a Rupay debit card.
- The next step is to fill out the nomination information and deliver the application form to the nearby bank branch.
- You must make sure the form is completed accurately.
After six months have passed since the account was opened, the account user may borrow up to Rs. 5,000 from the bank. Many of the program’s users, who live in poverty, will find solace in this fund benefit. This fund amount might be used to fund investments in agricultural or other more lucrative activities.
About Jan Dhan Darshak Application
A smartphone application has been released to give citizens a platform for finding banking touch points including Post Offices, ATMs, bank branches, Bank Mitras, etc. across the nation. Mapped on the GIS App are more than 8 lakh financial touchpoints. The public may use the Jan Dhan Darshak application’s range of services as they see fit and in their own best interests. Visit the website found at http://findmybank.gov.in to view the online version of your application.
This application is also being used to locate villages that are 5 kilometers or more away from banking touchpoints but are not currently served by them. By the SLBCs, these identified villages are subsequently assigned to various banks for the opening of banking outlets. There are now significantly fewer of these communities as a result of the initiatives.
The PMJDY program’s zero balance savings account is an excellent approach to introduce a significant portion of the population to traditional financial services and equip them with financial literacy.
The steps to open a PMJDY account are straightforward. To finish the process in the fewest steps possible, you can either select the PMJDY online application option or go to a bank.
By providing them with cutting-edge banking services including overdraft privileges, insurance policies, debit cards, and pensions, this program has benefited numerous poor& rural populations.
FAQs Related to the PMJDY Fund Program
For whom is the PMJDY account available?
The requirements for eligibility are as follows:
- You must be an Indian resident.
- You ought to be at least ten years old.
What steps are involved in opening an online Jan Dhan account?
The procedure is simple to follow. The application form can be downloaded from https://pmjdy.gov.in/. After that, kindly complete the form and send it along with the necessary paperwork. A KYC check will be done by the bank. You will be given a bank account once your identity has been satisfactorily verified.
What are the processing costs for processing the loan against my account?
To obtain a loan against your account, there are no processing costs.
What does Pradhan Mantri Jan Dhan Yojana mean?
A specially created National Mission for Financial Inclusion, the PMJDY seeks to improve financial inclusion. In addition, it intends to make basic bank & savings accounts, credit, insurance, remittance, and pensions easily accessible to everyone at a low cost.
Is there an overdraft facility at PMJDY?
Owners of PMJDY accounts may access overdrafts up to Rs. 10,000. However, each family is only permitted to have one account. Six months after an account is started, overdraft privileges are available.
What is the minimum deposit required to start a Jan Dhan account?
There is no opening deposit needed for Jan Dhan accounts. They do not have a minimum balance requirement and can be opened without balance.
How can I open a PMJDY account?
A PMJDY account is one that is formed to give recipients access to the direct benefits of government programs.
What if I don’t have reliable proof of residence? Will PMJDY permit me to create an account?
Yes. Still, you can open a bank account. You will have to provide ID proof to the respective bank issued by the Indian government.
I want to open a new bank account under PMJDY, but I already have a bank account with that bank. Am I eligible?
It is reliant on banks. You might be able to open one at some banks but not at others. Therefore, we suggest you ask any of your family members to create an account in the bank to get the benefit of the funding scheme.
Is it possible for me to update my bank account’s address?
Yes. You can verify your self-declaration certificate or provide supporting documentation to update your address.
Is my PMJDY Bank Account qualified to provide me with life insurance coverage?
Yes, for an unexpected case, your family would be covered by life insurance.
I took out a loan against my PMJDY Bank Account. Is it feasible to extend that amount?
The loan or overdraft you took out against your PMJDY Bank Account may be extended, yes. If you make timely repayments, the bank may raise this amount.