Pradhan Mantri Jan Dhan Yojana - Objectives, Features, Benefits, Eligibility, Progress Report

Introduction about Pradhan Mantri Jan Dhan Yojana 2023

Pradhan Mantri Jan Dhan Yojana 2023: In 2014, PM Modi has been launched an economic revolution in India by inaugurating ‘Pradhan Mantri Jan Dhan Yojana’. This scheme is popularly known as ‘Zero Bank Khata Scheme’ in India.

This scheme has allowed Indian Public to have an bank account in which they don’t have to maintain an minimum balance. However, this is not the only key specialty of Pradhan Mantri Jan Dhan Yojana.

In this blog, we have listed all details  about Pradhan Mantri Jan Dhan Yojana 2023.  These detail includes overview of PMJDY Scheme, Key features of PMJDY Scheme, Objectives of PMJDY Scheme, Recent developments of PMJDY Scheme 2023, Benefits of PMJDY Scheme, Application process for PMJDY Scheme, eligibility for PMJDY Scheme and much more.

So, let’s start-

What we’ll learn today?

SN	Topics Covered in this Blog
1.	Pradhan Mantri Jan Dhan Yojana (PMJDY) Details
2.	What is Pradhan Mantri Jan Dhan Yojana (PMJDY)? – Overview of PMJDY Scheme
3.	Objectives of Pradhan Mantri Jan Dhan Yojana (PMJDY)
4.	Features of Pradhan Mantri Jan Dhan Yojana (PMJDY)
5.	Pradhan Mantri Jan Dhan Yojana Benefits
6.	Eligibility for PMJDY Scheme
7.	Progress Report for the Scheme
8.	Application Process for Pradhan Mantri Jan Dhan Yojana – PMJDY Application Process
9.	FAQ’s related to Pradhan Mantri Jan Dhan Yojana (PMJDY) – Pradhan Mantri Jan Dhan Yojana (PMJDY) UPSC

 

Pradhan Mantri Jan Dhan Yojana (PMJDY) Details – Quick Facts about PMJDY

We have listed some quick details about PMJDY scheme below:

Facts	Description
Name of Scheme	Pradhan Mantri Jan Dhan Yojana
Motto of PMJDY	Mera Khata Bhagya Vidhata
Type of PMJDY	Economic
Country	India
Prime Minister(s)	Narendra Modi
Ministry	Union Ministry of Finance
Minister	Nirmala Sitharaman
When PMJDY Launched	28 August 2014; 9 years ago
PMJDY Status	Active
Website	www.pmjdy.gov.in
Overview	Financial inclusion program to provide access to banking and financial services for Indian citizens
Accounts Opened on Inauguration Day	1.5Cr
Total Bank Accounts Opened  (As of 2023)	Over 50.48 Cr
Total Deposits under the Scheme	Over ₹2,04,262 Cr
Slogan	"Mera Khaata, Bhagya Vidhata" (My account, fortune maker)
Average Deposit Amount per Account (As of 2023)	₹4,076
Key Participating Banks	State Bank of India, Canara Bank, Central Bank of India, Bank of Baroda
Criticisms	Critics cited concerns about duplication, eligibility for insurance, and dormant accounts.

 

 

PMJYD Full Form

The full form of PMJDY is "Pradhan Mantri Jan-Dhan Yojana." This Indian government scheme aims to promote financial inclusion by providing access to banking and financial services for marginalized and low-income groups.

 

 

What is Pradhan Mantri Jan Dhan Yojana (PMJDY)? – Overview of PMJDY Scheme

Explain Pradhan Mantri Jan Dhan Yojana: The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a flagship financial inclusion program initiated by the Government of India. Launched on August 28, 2014, PMJDY's primary objective is to provide affordable access to various financial services to marginalized and low-income groups. It encompasses the provision of basic savings bank accounts, access to credit, remittance facilities, insurance coverage, and pensions.

PMJDY aims for universal access to banking services, with at least one basic banking account per household. Beneficiaries receive RuPay Debit cards, which include accident insurance coverage of ₹1 lakh.

The scheme also facilitates the direct transfer of government benefits to beneficiaries' accounts, streamlining welfare distribution. To address technological challenges, the plan incorporates mobile transactions through telecom operators and Cash Out Points.

PMJDY represents a comprehensive and integrated approach to financial inclusion, leveraging technology and financial literacy to empower underserved communities and promote economic growth and stability.

It has made significant strides in expanding financial access and promoting financial security among vulnerable populations in India.

 

 

Objectives of Pradhan Mantri Jan Dhan Yojana (PMJDY)

There are several objectives on which this scheme named PMJDY is working right now. It has achieved many of the objectives as reality to the ground. We have named all the related objectives of PMJDY Scheme-

1.       Ensure universal access to basic financial services for all citizens.

2.       Promote a culture of savings and financial responsibility.

3.       Facilitate credit access for economic growth and entrepreneurship.

4.       Enhance financial security through insurance coverage.

5.       Encourage long-term financial planning and pension benefits.

6.       Remove the burden of maintaining a minimum account balance.

7.       Enable interest earnings on deposits to foster savings.

8.       Improve financial accessibility with Rupay Debit cards.

9.       Provide accident insurance cover for unforeseen events.

10.   Offer overdraft facilities for financial flexibility.

11.   Streamline government benefit transfers through DBT.

12.   Integrate with social security schemes for enhanced coverage.

13.   Promote micro-business development through the MUDRA scheme.

14.   Facilitate economic stability and social welfare.

15.   Build a financially inclusive nation for economic growth and development.

 

 

Features of Pradhan Mantri Jan Dhan Yojana (PMJDY)

The features of this Pradhan Mantri Jan Dhan Yojana (PMJDY) is as follows:

1.       Universal Access: Provides access to financial services for all, particularly the unbanked population.

2.       Basic Savings Account: Offers the creation of a basic savings and deposit account.

3.       No Minimum Balance Requirement: Eliminates the need to maintain a minimum account balance.

4.       Interest Earnings: Allows account holders to earn interest on their deposits.

5.       Rupay Debit Card: Issues Rupay Debit cards for easy transactions and ATM access.

6.       Accident Insurance: Provides accident insurance cover for account holders.

7.       Overdraft Facility: Grants eligible account holders access to overdraft facilities.

8.       Direct Benefit Transfer (DBT): Facilitates the direct transfer of government benefits to beneficiaries.

9.       Pension Access: Offers access to pension schemes for long-term financial planning.

10.   Credit Access: Promotes credit access for economic growth and entrepreneurship.

11.   Micro-business Support: Integrates with the MUDRA scheme to support micro-businesses.

12.   Financial Inclusion: Aims to bring marginalized populations into the formal financial system.

13.   Remittance Services: Facilitates secure and affordable remittance services.

14.   Social Security Schemes: Integrates with social security schemes like PMJJBY and PMSBY.

15.   Government Benefit Integration: Channels all government benefits to beneficiary accounts.

16.   Financial Literacy: Promotes financial literacy and awareness.

17.   No Frills Account: Offers simplified account opening procedures.

18.   Mobile Banking: Supports mobile transactions and cash-out points.

19.   Affordable Access: Ensures access to financial services at an affordable cost.

20.   Comprehensive Inclusion: Encompasses multiple financial services to empower individuals and foster economic growth.

 

 

Pradhan Mantri Jan Dhan Yojana Benefits

There are several benefits which beneficiaries get from this scheme. We have listed some of the key benefits of this scheme below:

1.       Bank Account for All: PMJDY ensures that every unbanked person gets a basic savings bank account.

2.       No Minimum Balance: There's no need to keep a minimum amount in your PMJDY account.

3.       Earn Interest: You can earn interest on the money you keep in your PMJDY account.

4.       Rupay Debit Card: You receive a Rupay Debit card for easy transactions and ATM use.

5.       Accident Insurance: You get accident insurance of ₹1 lakh (increased to ₹2 lakh for new accounts opened after 28.8.2018) with your RuPay card.

6.       Overdraft Facility: Eligible account holders can access an overdraft facility of up to ₹10,000.

7.       Government Benefits: PMJDY accounts can receive government benefits directly, making it convenient.

8.       Life and Accident Insurance: You can opt for life and accident insurance under PMJJBY and PMSBY.

9.       Pension Planning: Access to pension schemes like Atal Pension Yojana (APY) for future financial security.

10.   Support for Small Businesses: The scheme is linked to MUDRA for credit support to micro-businesses.

11.   Easy Access to Remittances: PMJDY makes it easier to send and receive money securely through remittance services.

12.   Financial Security: The scheme offers financial security with accident insurance, ensuring support in case of unforeseen events.

13.   Direct Government Benefits: Government benefits like subsidies and welfare payments are directly transferred to PMJDY accounts, reducing delays and leakages.

14.   Financial Literacy: PMJDY promotes financial literacy and awareness, empowering people with financial knowledge.

15.   Micro-Business Support: The scheme supports the growth of small businesses by providing credit through the MUDRA scheme, fostering entrepreneurship and economic development.

 

 

Eligibility for PMJDY Scheme

Pradhan Mantri Jan Dhan Yojana Eligibility - Eligibility for the Pradhan Mantri Jan Dhan Yojana (PMJDY) is quite straightforward. We have listed all of them as follows:

1.       Resident of India

Any individual residing in India, whether in urban or rural areas, is eligible to apply.

2.       Age Limit

There is no specific age limit for opening a PMJDY account. It is open to people of all ages, including minors, who can have an account managed by a guardian.

3.       No Existing Bank Account

The scheme is primarily intended for those who do not already have a bank account.

4.       Aadhaar Card

While an Aadhaar card is not mandatory, it can simplify the account opening process. However, individuals without an Aadhaar card can still apply by providing other valid identification documents.

5.       Know Your Customer (KYC)

Applicants must complete the KYC process by providing necessary identification and address proof documents, as required by the bank.

Overall, PMJDY is designed to be inclusive, ensuring that even the most underserved and marginalized populations have the opportunity to access formal financial services.

 

 

Progress Report for the Scheme

As of September 20, 2023, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) has made significant progress in extending financial inclusion across India. Here is a summary of the scheme's achievements:

1.       Beneficiaries

A total of 50.48 crore beneficiaries have been enrolled in PMJDY, with a notable presence in both rural and urban areas.

 

2.       Bank Participation

Public sector banks have played a substantial role, with 39.45 crore beneficiaries in rural/semi-urban areas and 14.71 crore in urban metro areas. Regional rural banks have also contributed, with 9.40 crore beneficiaries. Even private sector banks have reached 1.44 crore beneficiaries.

 

3.       Female Inclusion

PMJDY has successfully reached out to women in both rural and urban regions, with 21.73 crore female beneficiaries.

 

4.       Total Deposits

A remarkable achievement is the total deposits in PMJDY accounts, amounting to ₹2,04,261.83 crore, indicating increased savings and financial security among account holders.

 

5.       Rupay Debit Cards

To facilitate convenient transactions, PMJDY has issued 34.28 crore Rupay Debit cards to beneficiaries, enhancing their access to financial services.

This progress report underscores the scheme's significant impact in promoting financial inclusion, encouraging savings, and providing essential banking services to previously underserved communities in India.

 

 

Application Process for Pradhan Mantri Jan Dhan Yojana – PMJDY Application Process

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion program in India aimed at providing banking services to the unbanked and underbanked populations. 

We have mentioned an holistic Application process for PMJDY Scheme, but It's advisable to visit the official website of the program or contact a local bank for the most up-to-date information. Here is the general application process for PMJDY:

 

1.       Visit a Bank or Financial Institution

To open a PMJDY account, you need to visit your nearest bank or financial institution, including public sector banks, regional rural banks (RRBs), and some private sector banks.

 

2.       Fill Out the Account Opening Form

-          Request an account opening form (often referred to as the "Pradhan Mantri Jan-Dhan Yojana Account Opening Form") from the bank.

-          Fill out the form with accurate and complete information. You will need to provide details such as your name, address, date of birth, occupation, income details (if applicable), and nominee information.

3.       Submit Required Documents

Along with the account opening form, you will need to submit certain documents as proof of identity and address. Commonly accepted documents include:

-          Aadhar card

-          Voter ID card

-          Passport

-          Driving license

-          PAN card

-          Government-issued photo ID cards

 

4.       No Minimum Balance Requirement

One of the key features of PMJDY accounts is that they do not require a minimum balance to be maintained initially.

 

5.       Receive a RuPay Debit Card

Upon successful account opening, you will receive a RuPay debit card, which can be used for ATM withdrawals and transactions.

 

6.       Avail Overdraft Facility (if eligible)

Depending on your account usage and eligibility criteria set by the bank, you may be eligible for an overdraft facility.

 

7.       Financial Literacy and Insurance Awareness

Under PMJDY, account holders are often provided with financial literacy and insurance awareness programs to promote financial awareness and inclusion.

 

8.       Direct Benefit Transfer (DBT)

PMJDY accounts are often used for Direct Benefit Transfers (DBT) of government subsidies and payments, such as LPG subsidies, MNREGA wages, and pension payments.

 

FAQs related to Pradhan Mantri Jan Dhan Yojana (PMJDY) – Pradhan Mantri Jan Dhan Yojana (PMJDY) UPSC

Question-1. What is PMJDY, and why was it launched?

Answer. PMJDY, or Pradhan Mantri Jan-Dhan Yojana, is a government initiative aimed at providing financial inclusion to all Indians. It was launched to ensure that every household has access to banking services, promoting savings, credit, and insurance.

Question-2. Who is eligible to open a PMJDY account?

Answer. Any Indian resident, whether in urban or rural areas, is eligible to open a PMJDY account.

Question-3. What documents are required to open a PMJDY account?

Answer. You need basic identification and address proof documents, such as a voter ID, Aadhaar card, or passport, to open a PMJDY account.

Question-4. Is there any age limit for opening a PMJDY account?

Answer. No, there is no specific age limit for PMJDY accounts. People of all ages, including minors, can have an account managed by a guardian.

Question-5. Do I need an Aadhaar card to open a PMJDY account?

Answer. While an Aadhaar card is not mandatory, it can simplify the account opening process. However, individuals without an Aadhaar card can still apply with other valid identification documents.

Question-6. Is there a minimum balance requirement for PMJDY accounts?

Answer. No, there is no requirement to maintain a minimum balance in PMJDY accounts, making banking accessible to all income groups.

Question-7. Can I earn interest on the money deposited in a PMJDY account?

Answer. Yes, deposits in PMJDY accounts earn interest, encouraging a savings culture and financial growth.

Question-8. What is the benefit of having a Rupay Debit card with PMJDY?

Answer. A Rupay Debit card makes transactions and ATM access convenient for PMJDY account holders.

Question-9. What is the accident insurance cover provided with the RuPay card?

Answer. PMJDY account holders receive accident insurance cover of ₹1 lakh (enhanced to ₹2 lakh for new accounts opened after 28.8.2018) with their RuPay card.

Question-10. Can I access an overdraft facility with PMJDY?

Answer. Yes, eligible account holders can access an overdraft facility of up to ₹10,000.

Question-11. How does PMJDY facilitate the Direct Benefit Transfer (DBT) scheme?

Answer. PMJDY accounts can receive government benefits directly, reducing delays and ensuring beneficiaries receive subsidies and welfare payments promptly.

Question-12. What social security schemes are integrated with PMJDY?

Answer. PMJDY accounts are linked to social security schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) for enhanced financial security.

Question-13. Can I plan for my retirement through PMJDY?

Answer. Yes, PMJDY offers access to pension schemes like Atal Pension Yojana (APY) to help individuals plan for their retirement.

Question-14. How does PMJDY support micro-businesses?

Answer. PMJDY is linked to the MUDRA scheme, providing credit support to micro-businesses and promoting entrepreneurship.

Question-15. What is the role of PMJDY in promoting financial literacy?

Answer. PMJDY promotes financial literacy and awareness, empowering individuals with financial knowledge.

Question-16. How can I access remittance services through PMJDY?

Answer. PMJDY facilitates secure and affordable remittance services, making it easier to send and receive money.

Question-17. What are the benefits of the PMJDY for women?

Answer. PMJDY has successfully reached out to women in both rural and urban areas, promoting financial inclusion and security.

Question-18. How can I apply for a PMJDY account?

Answer. You can apply for a PMJDY account at any bank branch or Business Correspondent (Bank Mitra) outlet by providing the necessary identification and address proof documents.

Question-19. How can I check my PMJDY account balance?

Answer. You can check your PMJDY account balance by visiting the bank branch, using an ATM, or accessing your account through mobile banking.

Question-20. What is the overall goal of PMJDY?

Answer. The overarching goal of PMJDY is to promote financial inclusion, encouraging financially poor citizens to have their own bank account so they can have access to all types of banking.