Pradhan Mantri Jan Dhan Yojna (PMJDY) Explained

The Government of India has regularized different saving schemes for the welfare of citizens. These schemes are brought into action with one common objective- support to all individuals. One such scheme is Pradhan Mantri Jan Dhan Yojana announced by the Prime Minister of India on 15th August 2014.

What is Pradhan Mantri Jan Dhan Yojana(PMJDY)?

PMJDY is tagged as the “biggest financial inclusion initiatives in the world” which has a non-discriminatory approach towards the availability of financial services amongst each and every household of India. The scheme works around the assured provision of financial services such as Savings Accounts in Banks, Credit, Insurance, Remittance, Pension etc.

Any bank branch can open this account with zero balance requirement. But, in case the account holder wants to avail cheque book facility, he/she will have to deliver minimum balance requirements.

Features

• This scheme is regulated across all households, both Urban and rural, in India
• Under this yojana, more than 15 crore bank accounts will be opened for the poor
• All the accounts will have overdraft facility of Rs.5000/- provided that the account is Aadhaar linked and active for at least 6 continuous months
• Rupay Debit card will be sanctioned in the name of the account holder with personal accidental insurance cover of 1 lakh
• Life cover worth Rs.30000/- provided by LIC for the account holders
• Rs.5000/- will be a credit to the business correspondents as a minimum monthly remuneration

Eligibility

Given below is the eligibility criteria which must be fulfilled by an individual to open an account under the scheme:

• Applicant must be a citizen of India
• Minimum age should be 10 years
• Individuals who are paying income tax and their families cannot participate in this scheme
• The subscribers of Aam Aadmi Bima Yojana are not eligible to be members of this scheme 

Documents Required

Here is a list of all the documents required which the individual must duly submit in order to open an account under this scheme:

1. Filled and Signed PMJDY Account opening form
2. Passport
3. Driving License
4. PAN Card
5. Voter’s ID Card
6. Job Card issued by NREGA- National Rural Employment Guarantee Act
7. Letter issued by the Unique Identification Authority of India with the Name, Address and Aadhaar no. of the beneficiary
8. Other document required and requested by the Central Govt. after consulting the regulator
   1. Attested Photograph attached with a letter from a Gazetted officer
   2. ID card issued by Central or State Government Departments, Statutory or Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions

Pradhan Mantri Jan Dhan Yojana account opening Form

The individuals who are willing to open an account under PMJDY must submit the account opening form along with a passport size photo (not older than 6-months).

You can find the link to the form here:

PDF of Pradhan Mantri Jan Dhan Yojana Account Opening Form (Hindi)

PDF of Pradhan Mantri Jan Dhan Yojana Account Opening Form (English)

How to Open a Pradhan Mantri Jan Dhan Yojana account?

Follow the given steps to successfully open a savings account under this scheme:

From the aforementioned links, download the Account Opening form

• Now, fill the form carefully with all the KYC details
• After that, attach all the required documents along with the application form. All the documents must be signed and attested by the applicant
• Take the entire set of documents and letter to whichever bank in which you want to open the account
• Submit the documents to the Jan Dhan Mitr appointed by the banks to help applicants get enrolled easily
• Your account will be operational in a few working days

Overdraft Facility against PMJDY

Pradhan Mantri Jan Dhan Yojana enables the subscribers to avail an Overdraft of maximum Rs.5000. This credit guarantee is available for low income groups and underprivileged customers only. The purpose of the facility is to provide easy and free credit to the ones in need so that they are able to meet their exigencies without insistence on security.

Eligibility: 

• The overdraft will be given to subscribers of PMJDY with a savings account linked to Aadhaar Unique Id
• The account must be active for a minimum six months
• Preferably women of the house will be granted with the OD
• Age limit: 18 years to 60 years

Features of the Overdraft facility:

• The period of sanction of overdraft is 36 months
• The loan amount would be 4 times of Average monthly balance or 50% of the credit summations in the account or Rs.5000; whichever is lower
• There is no requirement of security to get overdraft
• Interest rate is maximum 2%

How to apply for Overdraft under PMJDY?

If you are a subscriber of Pradhan Mantri Jan Dhan Yojana fulfilling all the eligibility requirements, you can apply for Overdraft by submitting the following documents at the bank branch where the account is held. 

• Loan application-cum-undertaking form
• Arrangement letter signed and approved by the Account holder

PMJDY Loan Application-cum-undertaking Form, Download PDF

Banks Offering PMJDY Account

Both public as well as private sector banks offer the facility of opening PMJDY accounts. Enlisted below are the banks that execute the account opening process:

Private sector banks

• Axis Bank
• Yes Bank
• Karnataka Ltd. Bank
• IndusInd Bank Ltd.
• Federal Bank Ltd.
• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank Ltd.

Public Sector Banks

• Punjab National Bank (PNB)
• State Bank of India (SBI)
• Central Bank of India (CBI)
• Punjab & Sind Bank (PSB)
• Dena Bank
• Bank of Maharashtra (BOM)
• Bank of India (BOI)
• Bank of Baroda (BOB)
• Union Bank of India
• Vijaya Bank
• Indian Overseas Bank (IOB)
• Indian Bank
• Canara Bank
• IDBI Bank

Benefits of having a PMJDY Account

Account holders will get to enjoy Interest on Deposit- 4% Per Annum

• There is no requirement of maintaining minimum balance in the account
• Accidental Insurance cover of up to Rs. 2,00,000/- provided to the account holders
• Money transfer can be initiated with ease across India
• Applicants will get life cover of Rs.30,000 on fulfilling the eligibility criteria, which is paid on the death of the account holder
• Direct Benefit Transfer
• Overdraft facility is made available to the beneficiaries after completion of 6 months of active operation
• Easy access to financial products such as Pension and Insurance
• Up to Rs.10,000 overdraft facility is available to 1 individual (preferably a woman) per household
• Personal Accidental Insurance claim is payable under PMJDY only if the account holder has a Rupay Card with minimum one successful transaction processed at any Bank Branch, Bank Mitra, ATM, POS, E-COM etc. 

How to make withdrawals from my bank account?

Withdrawal from the bank account under Pradhan Mantri Jan Dhan Yojana can be made by using Rupay Debit card. However, there is a withdrawal limit of Rs.10000 per month which must be taken into consideration by the account holder. Also, maximum deposits of Rs. 1 lakh can be made to the account.

Frequently Asked Questions

Q.1. Who can open a Jan Dhan Account?
Ans: Any Indian Citizen who is above the age of 10, not an existing Income Tax payee and do not have an Aam Aadmi Bima Yojana account can open a Jan Dhan Account.

Q.2. From where can I open the PMJDY account?
Ans: Savings account under PMJDY can be opened from any bank which offers the scheme or any other Business Correspondent outlets

Q.3. What is a small account under Pradhan Mantri Jan Dhan Yojana?
Ans: Small account or Chota Khata under PMJDY is a bank account opened for a duration of 12 months.

Q.4. Can I extend my loan amount taken against the scheme?
Ans: Loan amount can be extended only when the repayments are made on time. 

Q.5. What is the maximum withdrawal limit in PMJDY?
Ans: Rs.10000/- is the maximum amount which can be withdrawn from the account in one month.