What is Pradhan Mantri Jan Dhan Yojana (PMJDY) and Its Benefits

Pradhan Mantri Jan Dhan Yojana is a financial inclusion program of the Government of India open to Indian citizens (minors of age 10 and older can also open an account with a guardian to manage it), that aims to expand affordable access to financial services such as basic bank accounts or bank deposit, remittances, credit, insurance, and pensions in an affordable manner. Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.

PMJDY is run by Department of Financial Services, Ministry of Finance, under this scheme 15 million bank accounts were opened on inauguration day. The Guinness Book of World Records recognized this achievement, stating: "The most bank accounts opened in one week as a part of the financial inclusion campaign is 18,096,130 and was achieved by the Government of India from August 23 to 29, 2014". By 27 June 2018, over 318 million bank accounts were opened and over ₹792 billion (US$12 billion) were deposited under the scheme.

Benefits under PMJDY

1. One basic savings bank account is opened for unbanked person.

2. There is no requirement to maintain any minimum balance in PMJDY accounts.

3. Interest is earned on the deposit in PMJDY accounts.

4. Rupay Debit card is provided to PMJDY account holder.

5. Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.

6. Life Insurance Cover of Rs. 30,000 to eligible PMJDY account holders who opened their account for the first time between 15.8.2014 to 31.1.2015 is available.

7. An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.

8. PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pendion Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

Source: https://pmjdy.gov.in