Pradhan Mantri Jan Dhan Yojana| PMJDY
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.
Eligibility Criteria PMJDY
To open a bank account under this scheme an individual has to meet certain eligibility criterion. These are listed below:
- The individuals who want to open bank accounts under this scheme should be over 18 years of age and they should be Indian residents.
- 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.
- 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.
- 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.
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.
- 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.
- 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.
- 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.
- A letter containing a photograph of the applicant which has been attested by a gazetted officer.
Benefits of the scheme
The individuals who open bank accounts under this scheme shall enjoy the following benefits:
- 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.
- 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.
- 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.
- 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.
- 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.