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Back in 2014, our Prime Minister, Narendra Modi, had a thought and wanted to make sure that every person in India, no matter how rich or poor, had access to financial services like:
- Credit: Access to loans or credit facilities to meet financial needs
- Insurance: Having protection in case of accidents or health problems
- Pension: Saving for retirement to ensure a secure and financially stable future.
- Savings Account: Access to a basic bank account where individuals can deposit and save money securely, earning interest over time.
- Deposit Accounts: Able to open various deposit accounts, including fixed or recurring deposits, to grow savings and earn interest.
- Remittance: The ability to send and receive money, especially for those living in different locations or sending money to family members.
On the 28th of August, 2014, during the launch of Pradhan Mantri Jan-Dhan Yojana (PMJDY), Narendra Modi recited an ancient Sanskrit verse: “Sukhasya Moolam Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam,” by emphasizing that how important it is to get people involved in economic activities and improve their financial well-being.
It was the day of a big celebration of providing help to people who didn’t have access to these financial services before. It was all about breaking the cycle of financial struggles for the less fortunate.
Prime Minister Modi believed financial independence is important and should be a fundamental right for all.
Now, let’s take a closer look at the Pradhan Mantri Jan Dhan Yojana:
Benefits of Investing in Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Access to Government Schemes: When you have a PMJDY account, you become eligible for various government welfare schemes like life insurance (Pradhan Mantri Jeevan Jyoti Bima Yojana), accident insurance (Pradhan Mantri Suraksha Bima Yojana), and support for small businesses (Micro Units Development & Refinance Agency Bank scheme – MUDRA scheme).
- Banking Access for Everyone: PMJDY opens basic savings accounts for people who didn’t have one before
- No Minimum Balance Requirement: You don’t need to keep a minimum balance in your PMJDY account.
- Rupay Debit Card: You’ll receive a special Rupay Debit card when you open a PMJDY account.
- Insurance Coverage: If you have this card, it comes with insurance. If something unfortunate happens to you, like an accident, you could receive money to help, up to Rs. 1 lakh. For new PMJDY accounts opened after August 28, 2018, it’s even higher, up to Rs. 2 lakh.
- Earn Interest: The money you deposit in your PMJDY account earns you some interest.
- Receive Government Benefits: Your PMJDY account can receive government subsidies and grants directly.
- Invest and Save: You can easily buy insurance and pension products
- Overdraft Facility: Allows you to access extra funds instantly in financial emergencies.
- Benefits for PM Garib Kalyan Yojana: This scheme, announced in March 2020, offers women account holders Rs. 500 monthly for three months.
Eligibility Criteria for PMJDY (Pradhan Mantri Jan Dhan Yojana)
- You need to be an Indian citizen.
- Applicant must be at least ten years.
- You shouldn’t already have a bank account.
Non-Eligibility Criteria for Pradhan Mantri Jan Dhan Yojana (PMJDY)
- People working for government-owned entities like banks and companies, along with their families, are not eligible.
- If you pay income tax under the Act of 1961 or file income tax returns, you’re not eligible, along with your family.
- If you are already covered by the Aam Aadmi Bima Yojana for specific jobs(48 defined under the scheme) ), you can’t join either, along with your family.
- If you already have life insurance through another bank scheme, you have to choose one or the other; you can’t have both.
How to Open a Jan Dhan Yojana Account?
- First, you’ll need to get an application form to open a Jan Dhan Yojana Account. You can find this form in both English and Hindi on the official PMJDY website (https://www.pmjdy.gov.in/scheme).
- You can open a PM Jan Dhan Yojana account at any bank.
- Complete the application form and provide all required documents before submitting them.
- If you have an Aadhaar Card, you won’t need any other documents to open the account. Your Aadhaar card will act as proof of your identity, age, and address. If your address has changed, you can provide a self-certified copy of the new address, and that’s enough.
Alternative Documents Required (If Aadhaar Card Is Not Available):
- If you don’t have an Aadhaar card, you can use one of these documents as proof:
- PAN Card
- Passport
- Voter ID Card
- NREGA Card
- Driving License
- If any of these documents have your address, they can also be your address and identity proof.
- If you don’t have an Aadhaar card or any of the mentioned documents, you can still open a PMJDY account if the bank sees you as low-risk. In this situation, you should provide:
- An identity card with your photo, issued by Government Departments, Banks, or other recognized authorities.
- A letter from a gazetted officer, along with a verified photograph.
What is the use of the Jhan Dhan Darshak App?
It is a beneficial app for people interested in this scheme and was launched by the Government of India in the initiative of Jan Dhan Yojana to easily locate the nearest bank branches/post offices/ATMs/Bank Mitras.
Additionally, the government uses the app to locate villages without banking services. This way, even remote villages can access banking facilities to improve their financial knowledge and development.
Interest Rates under PMJDY
The rate of interest under PMJDY varies from bank to bank and is typically based on the savings account interest rate offered by the respective bank. To find out the specific interest rate being offered under the Pradhan Mantri Jan-Dhan Yojana (PMJDY), you should inquire directly with your bank, as different banks may have different rates.
Death Benefit Eligibility:
If the account holder unfortunately passes away due to any reason, the nominee mentioned on the account will receive a death benefit of Rs.30,000.
Exiting the Scheme:
When the account holder turns 60 years old, they can exit the scheme.
Claim Settlement:
- If the account holder passes away, a sum of Rs.30,000/- will be given to the person(s) nominated by the account holder. The risk coverage starts when the person turns 18 and continues until they reach 60 years of age. Eligibility ends when they turn 60, and they will leave the scheme on their 60th birthday.
- The process of settling claims will be handled by LIC offices in various locations. Here's how it works:
- The District Branch or Nodal Branch of the bank will collect the necessary claim documents and send them to the Pension & Group Scheme Units of LIC for claim processing.
- The claim amount will be given to the nominee mentioned in the bank account.
- The claim money will be deposited into the nominee’s bank account using APBS/NEFT for a smooth and efficient process.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
