Financial inclusion is crucial for the development and growth of any country. In India, the government has taken several measures to ensure that every citizen has access to financial services. One of the significant initiatives in this regard is the Pradhan Mantri Jan-Dhan Yojana (PMJDY). In this article, we will delve into the PMJDY full form and meaning and its significance in promoting financial inclusion.
PMJDY = Pradhan Mantri Jan-Dhan Yojana
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Indian government on August 28, 2014. The scheme aims to provide banking services to every citizen of the country, especially the underprivileged sections, who have limited or no access to formal banking services.
What is PMJDY?
PMJDY is a national mission for financial inclusion to ensure access to financial services such as savings accounts, remittances, credit, insurance, and pensions in an affordable manner. The scheme aims to bring the underprivileged sections of society into the mainstream financial system and provide them with the benefits of formal banking services.
Objectives of PMJDY
The primary objectives of PMJDY are as follows:
- To provide universal access to banking facilities to all households in the country.
- To ensure that every individual has a bank account.
- To provide banking facilities to the poor and underprivileged sections of society.
- To provide financial literacy and education to the people.
- To promote the habit of savings among the people.
- To enable easy access to credit facilities for the underprivileged sections of society.
- To provide insurance cover to the poor and underprivileged sections of society.
Features of PMJDY
The key features of PMJDY are as follows:
- The scheme offers a zero-balance savings account to every citizen of the country.
- The account can be opened at any bank branch or Business Correspondent (BC) outlet.
- The account holder is provided with a RuPay debit card, which can be used to withdraw money from ATMs.
- The account holder can avail of a chequebook facility, although it depends on the bank’s discretion.
- The scheme provides insurance coverage of Rs. 2 lakhs for the account holder’s family.
- The scheme offers an overdraft facility of up to Rs. 10,000, although it depends on the bank’s discretion.
- The scheme allows for Direct Benefit Transfer (DBT) of subsidies and other welfare benefits to the account holder.
Benefits of PMJDY
The benefits of PMJDY are as follows:
- The scheme provides banking services to the underprivileged sections of society who have limited or no access to formal banking services.
- The scheme promotes financial literacy and education among the people.
- The scheme provides easy access to credit facilities for the underprivileged sections of society.
- The scheme provides insurance to account holder and nominee.
- The scheme allows for cashless transactions and promotes the use of digital payments.
- The scheme promotes the habit of savings among the people, leading to financial stability and growth.
Eligibility for PMJDY
Every citizen of India is eligible to open a PMJDY account, provided they do not have a bank account already. The account can be opened with zero balance and requires no minimum balance maintenance. Even minors above the age of 10 can open an account under the scheme, with their parent or guardian as a joint account holder.
How to open a PMJDY account?
PMJDY accounts can be opened at any bank branch or Business Correspondent (BC) outlet. The account opening process is straightforward and can be completed by filling out a simple form with basic details such as name, address, and identification proof. The account holder is provided with a RuPay debit card and a passbook, which contains details of all transactions made through the account.
Documents required to open a PMJDY account
To open a PMJDY account, an individual needs to submit the following documents:
- Aadhaar card or any other valid government-issued identity proof.
- Address proof, which could be a utility bill, passport, or any other valid document.
- Two passport-sized photographs.
Types of accounts available under PMJDY
PMJDY offers two types of accounts:
- Basic Savings Bank Deposit Account (BSBDA): This account can be opened with zero balance and provides the basic banking facilities such as deposit and withdrawal of money, fund transfer, and access to ATM services.
- Small Account: This account can be opened with zero balance and has a maximum deposit limit of Rs. 50,000. The account is valid for 12 months and can be extended up to four times.
Zero-balance account under PMJDY
The PMJDY scheme offers a zero-balance savings account to every citizen of India. The account requires no minimum balance maintenance and provides basic banking facilities such as deposit and withdrawal of money, fund transfer, and access to ATM services. The account holder is also provided with a RuPay debit card, which can be used to withdraw money from ATMs.
Overdraft facility under PMJDY
The PMJDY scheme provides an overdraft facility of up to Rs. 10,000 to account holders. The overdraft facility is available to eligible account holders after six months of satisfactory operations. However, the facility is at the bank’s discretion, and not all account holders may be eligible for the same.
Insurance cover under PMJDY
The PMJDY scheme provides insurance coverage of Rs. 2 lakhs to the account holder’s family. The insurance covers accidental death and disability, providing financial security to the family in case of any unfortunate event.
PMJDY and Direct Benefit Transfer (DBT)
The PMJDY scheme allows for Direct Benefit Transfer (DBT) of subsidies and other welfare benefits to the account holder. The scheme aims to eliminate leakages and ensure that the benefits reach the intended beneficiaries.
PMJDY and RuPay card
The PMJDY scheme provides account holders with a RuPay debit card, which can be used to withdraw money from ATMs and make cashless transactions. The card is accepted at all merchant establishments that accept debit cards.
Challenges faced by PMJDY
The PMJDY scheme has faced several challenges since its inception, such as the lack of financial literacy among the people, inadequate infrastructure, and low levels of trust in formal banking institutions.
However, the government has taken several measures to overcome these challenges and ensure the success of the scheme. The government has conducted various campaigns and awareness programs to promote financial literacy among the people.
The government has also introduced several incentives for account holders to encourage them to use their accounts actively.
FAQs on PMJDY
PMJDY stands for Pradhan Mantri Jan Dhan Yojana.
Every citizen of India is eligible to open a PMJDY account, provided they do not have a bank account already.
The documents required to open a PMJDY account are Aadhaar card or any other valid government-issued identity proof, address proof, and two passport-sized photographs.
The PMJDY scheme provides an overdraft facility of up to Rs. 10,000 to account holders after six months of satisfactory operations.
The PMJDY scheme provides insurance coverage of Rs. 2 lakhs to the account holder’s family, providing them with financial security in case of any unfortunate event.
Conclusion
PMJDY is a revolutionary scheme that aims to promote financial inclusion and provide banking facilities to every citizen of India.
The scheme has been successful in bringing millions of people under the formal banking sector and promoting the habit of savings among the people.
The scheme has also been successful in promoting cashless transactions and digital payments. However, the scheme still faces several challenges, and the government needs to take more measures to overcome them and ensure the scheme’s success.