PMJDY, also known as Pradhan Mantri Jan Dhan Yojana, is a financial inclusion program launched by the Government of India in August 2014. The main objective of the program is to provide access to financial services such as bank accounts, credit, insurance, and pension to every household in India. Let us discuss how to open PMJDY account online as well.
Benefits of PMJDY:
• Provides access to banking services to underbanked and unbanked individuals and households
• Offers a zero balance savings account, allowing individuals to save money without any minimum balance requirements
• Provides an accidental insurance cover of Rs. 2 lakhs and a life insurance cover of Rs. 30,000 for account holders
• Eligible account holders can also avail of various government schemes and subsidies
Eligibility criteria for PMJDY:
• Any individual above the age of 10 years can open a PMJDY account
• There are no income or educational qualifications required to open a PMJDY account
Features of PMJDY:
• Zero balance savings account
• RuPay debit card
• Overdraft facility of up to Rs. 5,000 after six months of satisfactory operation of the account
• Direct benefit transfer facility for various government schemes
Pros of PMJDY:
• Provides financial inclusion to underbanked and unbanked individuals and households
• Offers a zero balance savings account and insurance cover
• Enables direct benefit transfer of government schemes
• Provides overdraft facility after six months of satisfactory operation of the account
Cons of PMJDY:
• Limited overdraft facility of only Rs. 5000
• No interest on the deposit in the account
• The account holder should be careful with overdraft facility as it comes with interest rate.
PMJDY accounts can be opened at any bank branch or business correspondent outlet across the country
Additional points:
• The account can be opened with a minimum deposit of Rs. 10
• The account holder can also avail of other banking services such as internet banking, mobile banking, and SMS banking
• PMJDY accounts are linked to Aadhaar and Mobile number for easy identification and transactions
• In case of loss of debit card, duplicate card can be issued to the account holder
• PMJDY account holders can also avail of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) schemes for insurance cover.
• The scheme has been extended till March 31, 2023 to achieve its objective of universal coverage of households with at least one bank account per household and to bring a major part of the unorganized sector into the formal sector through their account opening and by providing them various facilities including insurance and pension
In summary, PMJDY is a comprehensive financial inclusion program that aims to provide access to a range of banking services to every household in India. It offers a zero balance savings account, insurance cover, and overdraft facility, as well as the ability to avail of various government schemes. The program is easy to access, with account opening available at any bank branch or business correspondent outlet, and is linked to Aadhaar and mobile number for easy identification and transactions. With the extension of the scheme, it will continue to provide benefits to the unorganized sector and achieve its objectives by 2023.
In conclusion, PMJDY is a valuable initiative launched by the Government of India to provide access to financial services to every household in the country. It offers a range of benefits such as a zero balance savings account, insurance cover, and overdraft facility, and enables direct benefit transfer of government schemes. However, it also comes with some limitations such as a limited overdraft facility and no interest on deposits. Overall, PMJDY is a useful program that can help individuals and households to improve their financial well-being.