How Good is Jan Dhan Yojana Scheme (PMJDY)? | Acheivements | Benefits | Apply

I remember the day when I first opened my bank account. It was in a government bank and no one was paying any sort of attention. And apart frothat I had to maintain a minimum balance of Rs. 10,000 all the time. Maybe this was a sort of problem which the common people faced for pening their accounts in the banks. And I think the government addressed this situation correctly by implementing one of its type Nationalised Scheme. So that no person would at any time be without a bank account.
This policy came out to be known as the Pradhan Mantri Jan Dhan Yojana or PMJDY which was launched by Prime Minister, Narendra Modi. It is targeted towards people who don’t have any access to financial services. 

PMJDY scheme is a universal assignment for monetary addition to making sure access to economic services, specifically, Banking/ Savings & set down accounts, allowance, recognition, indemnity, retirement fund in an inexpensive manner. The account can be released in any bank division or Business Correspondent (Bank Mitr) passage. PMJDY accounts are individually opened with Zero stability. Conversely, if the account-holder desires to acquire cheque book, he/she will contain to accomplish smallest amount balance criterion.

The scheme will guarantee financial admittance to everyone who was not capable of acquiring benefits of numerous further finance connected government methods. These financial overhauls comprise Banking/ Savings & set down accounts, allowance, credit, and insurance, a pension which will be completed accessible to the entire residents in easy & reasonable manner. Conversely, there was an added financial method (Swabhimaan) commenced earlier in which the objective of opportunity the bank accounts was for communities only. But in Pradhan Mantri Jan Dhan Yojna the complete creatures irrespective of their district (pastoral or urban) can acquire a bank account devoid of leaving any amount if they accomplish further eligibility criteria. This scheme is very helpful for the rural inhabitants where banking overhauls & further financial establishment are infrequently accessible.

Pradhan Mantri Jan Dhan Yojana| PMJDY

Beneath the Jan Dhan Yojna anybody who is India citizen on top of the age of 10 years & does not contain a bank account, can release the account with zero stability. The account can be opened in any bank branch or Business Correspondent (Bank Mitr) passage, particularly intended for the rationale of opening the descriptions beneath this scheme. The scheme also gives facility of unintentional insurance wrap up to rupees one lack with no any accuses for the account possessor. The account holders beneath the Jan Dhan yojana will be agreed on a RuPay debit card which can be utilized at the entire ATMs for cash removal & at most of the trade outlets for creation operation for acquires. PMJDY scheme is preparation on revolutionizing the customary banking system in India by giving that the banking occasion & insurance treatment to the entire counting the poor. The Prime Minister ongoing this determined project to assist the poor turn out to be more economically positive through this scheme & permitting every resident the right to contain their personal bank account & insurance reporting which was beforehand not possible for most of the residents under scarcity.

The principle of this scheme will absolutely profit the generally economy of the nation & the scheme offers several profitable advantages which should definitely be rewarded & considered. Under the PMJDY proposal, the account controllers will be specified worth Rs.30000 insurance exposure if they fulfill with certain measurement of the method which contains opening an explanation by January 26, 2015, & having an inadvertent insurance exposure of larger than Rs. 200000.

The Pradhan Mantri Jan Dhan Yojana is a scheme aimed at bringing financial services within the reach of all. For the longest time basic banking services such as opening a savings and deposit account, making payments through banks, being provided credit facilities, insurance and pension have been inaccessible to the majority of the population due to a variety of reasons. However the main reason has always been lack of funds. The fees charged by the banks or the terms and conditions imposed by them for providing these services are a huge hindrance to the masses when a majority of them are poor. Thus to bring banking to the lowest of the classes the Central Government started the Pradhan Mantri Jan Dhan Yojana, allowing applicants to open accounts in any bank with minimal documents and hassle free procedures. Under this scheme bank accounts can be opened without keeping any balance in the said account (zero balance accounts). However this facility comes with a caveat, if the account holder requires a cheque book for that account then he has to ensure that the minimum balance is maintained in the account.

The Pradhan Mantri Jan Dhan Yojana is a scheme aimed at bringing financial services within the reach of all. For the longest time basic banking services such as opening a savings and deposit account, making payments through banks, being provided credit facilities, insurance and pension have been inaccessible to the majority of the population due to a variety of reasons. However the main reason has always been lack of funds. The fees charged by the banks or the terms and conditions imposed by them for providing these services are a huge hindrance to the masses when a majority of them are poor. Thus to bring banking to the lowest of the classes the Central Government started the Pradhan Mantri Jan Dhan Yojana, allowing applicants to open accounts in any bank with minimal documents and hassle free procedures. Under this scheme bank accounts can be opened without keeping any balance in the said account (zero balance accounts). However this facility comes with a caveat, if the account holder requires a cheque book for that account then he has to ensure that the minimum balance is maintained in the account.

Pradhan Mantri Jan Dhan Yojana Advantages And Disadvantages

Pradhan Mantri Jan Dhan Yojana envisions a bank account & an ATM-facilitated RuPay debit card to a predictable 10 crore unbanked domestics in the kingdom.

Advantages:

The scheme is said to advantage roughly every human being in numerous methods, as stated by the administration.  It is supposed that this method is determined in nature & the government is a bounce to offer every domestic at least a bank description along with smallest amount insurance cover of a lakh. When additional than 40% of Indians exist their lives on with a reduction of than a dollar per day, this category of the scheme is supposed to assuage their economic standings & safety. The scheme, as declared, would decrease the function of money lenders in the lives of deprived, who till now did not contain access to banking overhauls.  It aspires at providing the capability to poor dealers who were earlier not capable of borrowing diminutive cash from banks that thus had to plunge prey to un-systematized money providing the system.

Disadvantages/limitations:

One of the major restrictions that PM Jan Dhan Yojana may approach across is the repossession & compilation of loans.  The borrowers are principally going to be little amount borrowers & would often appear from unorganized sectors of civilization & occupation.

Also Read – Pradhan Mantri Suraksha Bima Yojana

It might be a little complicated for the banks & the system to remain a track of the borrowers & thus, they may finish up in defeats.  It is however yet to observe how banks manage up with this opening & still be a foundation of the right economic modify, as desired by the Yojana. The Jan Dhan Yojana method is principally expressed at financially disqualified bank account controllers who do not take a bank account. The scheme aspires at ending the “Financial Untouchability” between the masses whom banks complete not interrelates with. By involving these prohibited people into the banking system, India’s PM Narendra Modi requests to decrease the gap among the haves & have not’s.

Eligibility Criteria PMJDY

To open a bank account under this scheme an individual has to meet certain eligibility criterion. These are listed below:

  1. The individuals who want to open bank accounts under this scheme should be over 18 years of age and they should be Indian residents.
  2. Minors above the age of 10 years can also open bank accounts under this scheme, however these accounts shall be managed by their respective parents or guardians, till the time these minors attain majority. The upper age limit for accounts under this scheme is 60, thus an individual can obtain the benefits under this scheme till the age of 60 and not beyond that.
  3. All existing savings bank account holders have been provided the facility under this scheme of converting their accounts and turning them into a Pradhan Mantri Jan Dhan Yojana account, subject to terms and conditions.
  4. Low risk individuals are those individuals who are unable to furnish any of the documents such as an Aadhar Card or those designated as OVDs, however as explained above, even these individuals can open bank accounts under these schemes subject to restrictions.
  5. The individuals who want to open bank accounts under this scheme should be over 18 years of age and they should be Indian residents.
  6. Minors above the age of 10 years can also open bank accounts under this scheme, however these accounts shall be managed by their respective parents or guardians, till the time these minors attain majority. The upper age limit for accounts under this scheme is 60, thus an individual can obtain the benefits under this scheme till the age of 60 and not beyond that.
  7. All existing savings bank account holders have been provided the facility under this scheme of converting their accounts and turning them into a Pradhan Mantri Jan Dhan Yojana account, subject to terms and conditions.
  8. Low risk individuals are those individuals who are unable to furnish any of the documents such as an Aadhar Card or those designated as OVDs, however as explained above, even these individuals can open bank accounts under these schemes subject to restrictions.

Pradhan Mantri Jan Dhan Yojana Terms And Conditions

PMJDY is a well-liked financial enclosure scheme. As of January 2015, it is supposed that roughly 10 crore bank accounts are released beneath this scheme. The main intend of the scheme is to give confidence & transport additional number of family circles into the banking organization. The main characteristics of the Jan Dhan method are:

  • No smallest amount balance is required.
  • Account owner will acquire Rupay debit card.
  • Free Accident indemnity cover of Rs 1 Lakh.
  • When the scheme was formally commenced on 28th August, one extra characteristic was incorporated into the method.
  • The qualified Age collection is 18 finished to 59 (earlier Birth Day).
  • A human being opening a Bank description for the primary occasion (by means of RuPay Card).
  • The only leader of the family is enclosed beneath this Risk Cover system.
  • In case the leader of the family is 60 years or additional of age, the second receiving human being of the family in the over mentioned age cluster will be enclosed.
  • In the folder of joint Account-holders beneath PMJDY, the first explanation holder (prime account holder) will be offered Life Insurance envelop.
  • The Bank account owner’s account should have Ru-pay debit card connected to his/her Aadhaar numeral.
  • For the exposure to be effectual the RuPay Card must be suitable & in force.
  • Only one human being in the family will be cover up in the Bima system and in the case of the individual having manifold cards / accounts the profit will be permitted only beneath one card.

Documents Under PMJDY

If the person has an Aadhar Card then that individual is not required to submit any additional documentation, the Aadhar card suffices for the purpose of this scheme. It may so happen that the individual may be residing in a place which is different from the address mentioned in the Aadhar card, in that case the individual is only required to self certify the current address and that shall be sufficient.

  1. The government has declared a list of documents, officially known as OVDs or Officially Valid Documents, and in case an individual does not have an Aadhar Card, then the documents listed as OVDs can be used for opening accounts under this scheme. The list of documents that fall under the classification of other valid documents is not too large, it contains documents that are important in any walk of life and everyone is expected to have one, one of these documents are voter ID cards, since it is expected that all citizens who are of age should be responsible and vote and to do that you need your voter ID. Another document which belongs in this list is a driver’s license, which with the increasing number of cars in the country, an applicant is quite likely to have, and the other documents in the list are equally important ones like passports and PAN cards.  For those who are employed under the NREGA scheme can also use their job cards for this purpose.
  2. In case a person does not have an Aadhar card or the other valid documents as mentioned above, in that case the person can open the account subject to some restrictions, provided any of the two documents mentioned below are submitted by that person.
  1. Any identification cards which are generally issued to employees by Governments, either Central or State, or companies in which the Central and/or State Government has a majority stake, or governing bodies that regulate the banking system in the country or the stock markets in the country and even the big banks operating in the country, which are not privately owned.
  2. A letter containing a photograph of the applicant which has been attested by a gazetted officer.

This scheme provides several benefits listed below:

  1. There will be no limited amount required to open a bank account.
  2. Account holder will be provided with free accidental insurance of ₹1,00,000.
  3. The holders can take a load of upto ₹ 5,000 from the bank.
  4. A new integrated payment mechanism in the form of RuPay Debit card will be provided.

Achievements

  1. This scheme got itself in the Guinness Book of World Records.
  2. Within three years, more than 30crore accounts were opened.
  3. The accounts showed a massive deposits of ₹ 7,500 Crores.

If you don’t have a bank account and want to open a account under PMJDY. Below is the procedure of opening a bank account under the scheme:

How to apply for Pradhan Mantri Jan Dhan Yojana (PMJDY)?

  1. The Pradhan Mantri Jan Dhan Yojana form  is to be filled and submitted to the bank where you want to open your account.
    Link for form (Hindi): https://www.pmjdy.gov.in/files/forms/account-opening/hindi.pdf
    Link for form (English): https://www.pmjdy.gov.in/files/forms/account-opening/English.pdf
  2. Each participating bank will have dedicated desk having a Bank Mitr who will help you with the form submission and account opening procedure in order to obtain Pradhan Mantri Jan Dhan Yojana Account.
  3. The account opening form needs to be submitted along with certain ID proofs like identity and address proofs. However, applicants with a valid Aadhar number will not be required to submit any extra proofs. Also, two passport sized photographs needs to be furnished to the bank at the time of account opening.
  4. Once the documents are submitted, account will be opened in a few working days and the applicant will be given a passbook, a cheque book, a RuPay Debit card and in some cases a Jan Dhan Yojana Information kit by the bank.

Benefits of the scheme

The individuals who open bank accounts under this scheme shall enjoy the following benefits:

  1. The amounts that are deposited in these accounts by the account holders shall generate interest income for them, in other words these accounts are not interest free and banks shall pay interest on these accounts.
  2. The account holders shall be provided a personal accidental insurance cover of Rs 100000/- . This cover shall be provided by any of the four state owned general insurers active in the country. In addition to the accident cover as an added bonus, Life Insurance Corporation of India (LIC) is also providing free life insurance to the tune of Rs. 30000/- to each account holder.
  3. This scheme also facilitates transfer of money to all parts of India in an easy and hassle free manner. Thus account holders do not have to jump through hoops to send or receive money from any other place within India.
  4. It is possible that the account holders under the Pradhan Mantri Jan Dhan Yojana may be part of other Central Government schemes, and in many of these schemes it can be seen that the Central Government is directly distributing subsidies to the intended beneficiaries of such schemes, this direct financial support from the Government can be received in any account under this scheme.
  5. After a probationary period of 6 months, in which if the operation of the account remains satisfactory and compliant to the rules framed under this scheme, then the account holder shall be provided an overdraft facility. However the overdraft facility is limited to an amount of Rs. 5000 and shall only be provided for any one account per household.

Points to note:

The insurance cover facility shall be provided through the RuPay card, however to claim the Personal Accident Insurance cover the account holder shall have to fulfill certain conditions.

Currently, to successfully claim an Accidental cover the RuPay card holder should have performed at least a single successful transaction at any of the following places, bank branches, Bank Mitr outlets, ATMs etc. before the date in which the accident occurred.

Those that hold a premium card can file a claim only if they have used the card at least once within a period of 90 days before the accident and the same clause applies to non-premium card holders, the only difference being the time period, which for them is only 45 days.

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