Everything you wanted to know about Jan Dhan Yojana

What is the Jan Dhan Yojana?

Launched in 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a scheme run by the Ministry of Finance of the Government of India. The purpose of Jan Dhan Yojana is to provide easy access to financial services to those who don't have bank accounts.

These services include:

• Banking, savings and deposit services
• Remittance
• Credit
• Insurance
• Pension

The Jan Dhan account is targeted towards the rural and urban Indian population that was earlier unable to get benefits from the financial services listed above.

Who offers the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Since it is a financial well-being scheme, it is primarily offered by the government or private sector banks and business correspondent (Bank Mitr) outlets.

Benefits of the Pradhan Mantri Jan Dhan Yojana (PMJDY)

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

• You can avail of a loan against it
  This scheme enables you to borrow up to Rs. 5,000 against it once you have completed six months.
   
• Mobile banking
  Thanks to mobile banking, you can now manage your funds easily online without the hassle of visiting your respective bank's branch repeatedly. It enables you to perform several banking transactions from a smartphone as well as a regular mobile phone.
   
• Insurance benefits
  You also have a chance to insure your family with this scheme. It provides you with a life cover of Rs. 30,000 and up to Rs. 2 lakh in the event of death due to an accident.
   
• Macro-economic benefits

1. It helps you save funds for emergency.
2. You receive a RuPay debit card along with the Jan Dhan bank account. This enables you to withdraw funds from your account easily with an ATM.
3. It also provides you with insurance which you may not be able to afford otherwise.
4. 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.
5. Investing in this account comes with no risk of fraud since it is an Aadhaar-linked scheme.
6. This account also enables you to gain interest on a timely basis.
7. The Pradhan Mantri Jan Dhan Yojana also lets you transfer funds from one account to the other with minimal formalities. It also enables you to shift your account from one country to another.

Eligibility criteria for the PM Jan Dhan Yojana

To open a Jan Dhan bank account, you need to meet the following eligibility parameters. This helps ensure that those who are in genuine need of this service can avail its benefits.

Here are the Pradhan Mantri Jan Dhan Yojana eligibility criteria that you need to meet to avail the scheme:

• You need to be an Indian national and provide sufficient proof of it
• There is no age limit to open this account. Anyone aged 10 years or older can open this account. However, if 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 is defined as a person who does not have sufficient proof of their nationality but is 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 of the benefits it offers

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:

• Employees of the state or central government are not allowed to opt for this scheme
• Existing income tax payees and their families are not eligible to apply for the 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 avail of the Jan Dhan account benefits, then you can do so by 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

1. Government banks

• State Bank of India
  
• Bank of Baroda
• Bank of India
• Allahabad Bank
• Central Bank of India
• Punjab National Bank
• Bhartiya Mahila Bank
• Punjab and Sindh Bank
• Canara Bank
  
• Bank of Maharashtra
• Corporation Bank
• Indian Bank
• Union Bank of India
• Andhra Bank
• IDBI Bank
• Syndicate Bank

2. Private banks

• HDFC Bank
• ICICI
• 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

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. If 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 address proof, you can apply if the bank you approach categorises you as a low-risk candidate for 12 months. During this time, you can apply and submit your Aadhaar as proof of residence to enjoy permanent benefits.

Additional read: How to apply for 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 driving 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.

Pradhan Mantri Jan Dhan Yojana form

The Jan Dhan Yojana form is called the Financial Inclusion Account Opening Form. You need to fill this form and submit it when applying for the scheme. This form consists of three sections:

• Bank details where the 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 needs to be filled with correct information. However, this form is designed to be simple and easy to fill; here's what you need to know about each section:

• Bank details: In this section, you need to provide all the relevant information about the bank to open a Jan Dhan bank account. Fill in information such as 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 information 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 information about the nominee that you want to select. Carefully fill in the details such as the nominee's name, relationship, age, date of birth, and information about the person authorised to receive the funds in the event of the nominee's death.

Additional read: How to open a Jan Dhan Yojana account

Interesting facts about Jan Dhan Yojana

• It has an entry in the Guinness World Records for the most bank accounts opened in 1 week
• It has led to the opening of 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 scheme was a success as the number of adult bank account holders increased to 80% in 2017 from 53% in 2014, according to the Global Findex Report