Introduction
PMJDY (Pradhan Mantri Jan Dhan Yojana) is a financial inclusion initiative announced by Prime Minister Shri Narendra Modi on 15th August 2014 on the occasion of independence day of India. It is considered as one of the biggest financial inclusion initiatives in the world. The main aim of the scheme is to provide basic financial services to each and every citizen of India. These services include basic savings bank account, access to need based credit, insurance and pension facilities. It was certified as the “Most bank accounts opened in a week as a part of financial inclusion campaign” by Guinness World Records. Total 18,096,130 accounts were opened in one week.
PMJDY Scheme Details
Objectives :
- To ensure access of financial services and products at an affordable cost to underserved/Unbanked section of the society.
- Use of technology to lower the cost.
- Widen the reach of basic banking services to the people of India.
Features :
- Banking the Unbanked : This features includes opening of Basic Saving Bank Deposit (BSBD) Accounts with minimal paper work, relaxed KYC, eKYC, zero balance and zero charges.
- Securing the Unsecured: It includes Issuance of indigenous Rupay debit cards for cash withdrawals and payments at merchant locations with free accidental insurance coverage of Rs. 2 lakhs (earlier it was Rs.1 lakh)
- Funding the Unfunded: It means providing overdraft for consumption, micro pension and micro credit.
- Accounts opened under this scheme are online accounts opened at bank branches in Core Banking System (CBS) or through banking correspondents.
- Account is Inter operable through Rupay Debit card or Aadhar enabled Payment System (AePS) at fixed point Business Correspondents.
Benefits
Benefits of PMJDY are as follows
- Universal access to banking services at branches of the banks and Banking Correspondents.
- It provides overdraft limit upto Rs. 10,000. Earlier it was Rs. 5000.
- Upper age limit for OD has also increased from 60 to 65 years.
- Free accidental insurance cover of Rs. 2 lakhs is given on Rupay debit card for accounts opened after 28/08/2018.
- Relaxed KYC and eKYC norms.
- This scheme has been the foundation stone for people centric economic initiatives such as Direct Benefit Transfers (DBT), COVID 19 financial assistance, PM-KISAN yojana, increased wages under MGNREGA, life and health insurance.
- Within 10 days of nationwide lockdown 20 crore women PMJDY accounts were credited with ex-gratia.
- It has empowered vulnerable sections of society with the help of Direct Benefits Transfer in Covid 19 times.
Account opening
Account is opened at any bank branch or at Banking Correspondents outlet. Following procedure can be followed to open an account
- Obtain the application form for Pradhan Mantri Jan Dhan Yojana from Government’s official website or from any bank branch.
- Fill that form and attach required documents to it.
- Submit it at nearby bank or at banking correspondent outlet. After successful verification of all the documents account will be opened.
Insurance Coverage under PMJDY
- This schemes provides life as well as health insurance.
- Life insurance of Rs. 30000 is offered under this scheme.
- Nominee can claim the death benifits of Rs. 30000 after the death of account holder.
- Life Insurance Corporation of India provides the life cover.
- Health cover of Rs. 2 lakh is provided under this scheme.
Claim settlement of Life Insurance under PMJDY
- Nominee of the account has to intimate the bank about the death of the account holder where Pradhan Mantri Jan Dhan account was opened .
- He/She has to fill claim settlement form and attach attested copy of death certificate of the account holder along with other necessary documents.
- Other necessary documents include copy of Adhar card of deceased account holder, his/her original bank passbook, debit card, cheque book, identity and bank details of nominee.