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Everything you wanted to know about Jan Dhan Yojna

  • Highlights

  • PMJDY aims to achieve national financial inclusion

  • It has simple eligibility criteria

  • It enables you to borrow a loan

  • It provides regular interest gains

What is Jan Dhan Yojna?

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a scheme that is run by the Ministry of Finance, and was launched by Prime Minister Narendra Modi in 2014. The purpose of Jan Dhan Yojana is to provide easy access to financial services to those who don’t have bank accounts. These financial services include:
- Banking, savings and deposit services
- Remittance
- Credit
- Insurance
- Pension

The Jan Dhan account is targeted towards that segment of the population that was earlier unable to benefit from financial services such as the ones listed above from both rural and urban India.

Who offers PradhanMantri Jan DhanYojana [PMJDY]

Since is a financial wellbeing scheme, it is largely offered by both government banks, private sector banks and business correspondent (Bank Mitr) outlets.

Benefits of PradhanMantri Jan DhanYojana [PMJDY]

Given that this is a scheme designed for the financial inclusion of Indian citizens, here are some of the Jan Dhan Yojana benefits

- You can avail a loan against it

This scheme enables you to borrow a loan of up to Rs.5,000 against it once you have completed 6 months.

- Mobile banking

You can now manage your funds easily online without that hassle of visiting your bank branch repeatedly, thanks to mobile banking. It enables you to perform several banking transactions from not just a smartphone, but also a regular mobile phone.

- Insurance benefits

You have a chance to safely insure your family with this scheme. It provides you a life cover of Rs.30,000 and up to Rs.2 lakh in event of death due to an accident.

- Macro-economic benefits

a) It helps you save funds for a rainy day
b) You receive a RuPay debit card along with the Jan Dhan bank account. This enables you to easily withdraw funds from your account from an ATM.
c) It helps provide you with insurance which you may not be able to afford otherwise.
d) You can also opt for an overdraft facility of up to Rs.5,000. The maximum limit for an overdraft can go up to Rs.15,000.
e) Investing in this account comes with no risks of fraud since it is an Aadhaar-linked scheme.
f) This account also enables you to gain interest on a timely basis.
g) The Pradhan Mantri Jan Dhan Yojana also lets you transfer funds from one account to the other with minimal formalities. It also lets you transfer your account from one country to another.

Eligibility Criteria for PM Jan Dhan Yojana

To open a Jan Dhan bank account you need to meet the eligibility criteria. This helps ensure that those that are in true need of this service can avail its benefits. Here are the PradhanMantri Jan DhanYojana eligibility criteria that you need to meet in order to gain from the scheme:
- To apply for it, you need to be an Indian national and provide sufficient proof of it.
- There is no age limit to open this account. Anyone of a minimum 10 years of age can open this account. However, in case the account holder is a minor, there needs to be a registered guardian to manage the account on the minor’s behalf.
- Any low-risk individual may open this account. A low-risk individual can be defined as a person who does not have sufficient proof of their nationality, but are deemed low-risk by a bank after valid research.
- You may open a Jan Dhan bank account even if you have another savings account. In this case, you can transfer it to the Jan Dhan account to avail the benefits offered.

Who is not eligible for the scheme?

Here is the list of groups of people who may not be able to enjoy the benefits of this scheme:
- If you are from the state or central government, then you and your family will not be able to opt for this scheme.
- Existing income tax payees and their families are not eligible to apply for PM Jan Dhan Yojana.
- If you are registered with the Aam Aadmi Bima Yojana, you cannot benefit from this scheme. However, if you want to gain from the Jan Dhan account benefits, then you can do so on giving up the Aam Aadmi Bima Yojana scheme.
- Apart from the above, if you fail to meet the eligibility criteria of the scheme, you are automatically deemed non-eligible.

List of Banks Offering Jan Dhan Account Benefits

a) Government banks

- State Bank of India (and its affiliated banks)
- Bank of Baroda
- Bank of India
- Allahabad Bank
- Vijaya Bank
- Central Bank of India
- Punjab National Bank
- Dena Bank
- Bhartiya Mahila Bank
- Punjab and Sindh Bank
- Oriental Bank of Commerce
- Canara Bank
- Bank of Maharashtra
- Corporation Bank
- Indian Bank
- Union Bank of India
- Andhra Bank
- IDBI Bank
- Syndicate Bank

b) Private banks

- HDFC Bank
- YES Bank
- Karnataka Bank
- Kotak Mahindra Bank
- Axis Bank
- Dhanlaxmi Bank
- Federal Bank
- Induslnd Bank
- ING Vyasa Bank

Documents Required to Open a Jan Dhan Account

As a way to verify your eligibility, you need to submit certain documents when applying for this scheme. Here they are:

- Address proof

Under this category you need to submit documents like your passport or Aadhar Card. In case you don’t have an Aadhar card, you can apply for it, and only then you would be eligible for this scheme. If you don’t have an address proof, then you can apply if the bank you approach categorises you an a low-risk candidate for 12 months. During this time, you can apply and submit your Aadhaar as proof to enjoy permanent benefits.

Additional Read: How to Apply Aadhar Card Online

- Identity proof

While 2 passport-size photographs are needed to open your Jan Dhan account, you also need other ID proof like your driver’s license, voter’s ID. If you don’t have ID proof, you can furnish an authority letter stating that you are an Indian national by any gazetted officer.

PradhanMantri Jan DhanYojana Form

The Jan Dhan Yojana form is called the Financial Inclusion Account Opening Form. This is the form that you need to duly fill and submit when applying for the scheme. This form consists of three sections:
- Bank details where account is being opened
- Applicant’s details
- Nominee details

What are the details to be included in the PMJDY application form?

Each of the three sections outlined above need to be filled with correct information; however, this form is designed to be simple and easy to complete. Here’s what you need to know about each section:

- Bank details: This is the section where you need to provide all the relevant information of the bank so that you can start a Jan Dhan bank account. Fill in information about the name of your bank branch, the name of your town, your sub-district and block name, your district, your state, SSA code, village code and town code.

- Scheme applicant’s details: This section requires you to fill in all relevant personal information about yourself. This would involve entering personal details like your full name, marital status, name of father/spouse, address, pin code, telephone number, Aadhaar card number, MNREGA job card number, occupation, annual income, number of dependents, asset details, existing bank account number and Kisan Credit Card details.

- Nominee details: This section needs you to provide details about the nominee that you want to select. Carefully fill in the details about the name of the nominee, relationship, age, date of birth and details about the person authorised to receive the funds in event of the nominee’s death.

Additional Read: How to Open a Jan DhanYojana Account

7 Interesting facts about Jan Dhan Yojana

- It was launched by PM Modi during his first Independence Day speech on 14th August, 2014.
- It created a record in the Guinness World Records, which lists it as an ‘Achievement’ for the most bank accounts opened in 1 week.
- It has led to opening 31 crore accounts spread across rural and urban India as of April 2018.
- The total balance in these accounts is over Rs.80,000 crore as of April 2018.
- Under public sector banks, SBI has opened the most number of Jan Dhan accounts.
- The Jan Dan Yojana has also won recognition from the World Bank for facilitating financial inclusion.
- The scheme has been considered a success as the number of adult bank account holders have increased to 80% in 2017 from 53% in 2014, according to the Global Findex Report.

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