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Did you know that the Indian government has a place in the Guinness Book of World Records? It holds the record for the largest number of bank accounts opened in a single week under a financial inclusion campaign. Under the Pradhan Mantri Jan DhanYojna (PMJDY), 1,80,96,130 accounts were opened, according to the Press Information Bureau, Govt. of India.
PMJDY is a government scheme that was launched in 2014, to ensure financial inclusion of every Indian citizen who does not hold a bank account. The main aim of this scheme is to provide access to basic financial services, such as savings account, fixed deposits, pension, insurance, credit and remittance.
An account can be opened by any individual who is a citizen of India. It can even be opened for minors who are over 10 years old.PMJDY is part of the government’s many plans aimed at increasing financial inclusion. Among these is the Pradhan Mantri Jeevan Jyoti Bima Yojana. This is a life insurance policy that provides a death cover of ₹2 lakhs and can be renewed on a yearly basis. The Pradhan Mantri Jeevan Jyoti Bima Yojana is available to anyone between 18 and 50 years having a bank account.
Documents Required
The documents required for opening a PM Jan DhanYojana are:
- In case the applicant has an Aadhaar card, then no other documents are required. In case the address has been changed, then self-certification would be needed of the current address.
- If the applicant does not have an Aadhar card, then they need to provide one of the following documents
- Voter ID card
- PAN card
- Driving license, or
- Passport.
If the document contains the address as well, it can act as address proof as well.
- In case, the applicant does not have any of the above documents, and is categorized as “low risk” by the banks, they can provide any of the following documents:
- A letter issued by a government officer, with a duly attested photograph of the person.
- Identity card with applicant’s photograph issued by Statutory/Regulatory Authorities, Central/State Government Departments, Scheduled Commercial Banks, Public Sector Undertakings, or Public Financial Institutions.
Benefits of the PMJDY Scheme
Some of the benefits of the Pradhan Mantri Jan DhanYojna Scheme are:
1. Insurance
One of the biggest benefits of this scheme is that the applicant gets a life cover of ₹30,000 (payment to the beneficiary on demise of policy holder) and accidental insurance cover of ₹1 lakh. This feature is especially important when one realizes that 75% of Indians do not have life insurance.
2. Mobile Banking
This scheme offers the benefits of mobile banking for checking account balance, transferring money and even investing in fixed deposits.
3. Loan Benefits
Under PMJDY, the account holder is eligible for an overdraft facility of ₹5,000. But this feature is limited to just one account per household. The amount may look small to some but is a boon for many Indians living near the poverty line.
4. Other Benefits
Some of the other benefits of this scheme are:
- The account holder is not required to maintain a minimum balance.
- The account holder gets the benefit of pension schemes.
- PMJDY allows direct transfer of other schemes.
Pradhan Mantri Jan DhanYojna is one of the many financial schemes for Indian citizens and one that more people should be aware of.
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