The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a scheme that aims to offer comprehensive financial services to previously excluded sectors of the community. Indian nationals over the age of 10 years are eligible to apply for this scheme. Here’s a list of reasons why you should consider enrolling under the scheme.
1. No minimum balance required
To be inclusive for all sections of society, the PMJDY does not have a minimum enrollment balance requirement. Zero-balance accounts are also eligible for the PMJDY scheme. Any deposit made into the account will also accrue interest at a rate similar to other banks.
2. Direct transfer of subsidies
Before the PMJDY scheme was initiated, all government welfare subsidy payments (for example, LPG subsidies) were made through the issuance of cheques or even with cash. This contributed to fraud, or at the very least, made it difficult for many people to obtain their subsidy payments. The PMJDY will ensure that all subsidy payments are made directly to your bank account.
3. Money transfer made easy
In a bid to bring financial services to all citizens, including those who live in otherwise inaccessible locations, the PMJDY has introduced mobile banking for all phones—and not just smartphones. Bank transactions are a lot easier and more accessible this way. Moreover, all participating banks are linked via the core banking solution or CBS, making inter-bank transfers a lot easier.
4. Access to need-based loans
Six months after you successfully operate a PMJDY account, you can avail of an overdraft facility for up to Rs. 5,000. Upon successful repayment of this loan, the overdraft limit may be extended to Rs. 15,000 at your bank’s discretion. So, you can access money during emergencies with ease.
5. Life insurance coverage of up to Rs. 30,000
If you have opened your account before January 31st, 2015, and are an earning member of your family, you may be eligible for life insurance coverage. Upon meeting specific eligibility criteria, your family can benefit from life insurance coverage of up to Rs. 30,000.
6. Accidental insurance coverage of Rs. 1 lakh
In the case of accidental death, the scheme offers coverage of up to Rs. 1 lakh, provided there have been transactions on the account before the accident date.
7. Pension scheme
Holding a Jan Dhan account allows previously excluded sectors of society to access government-led pension schemes. Beneficiaries will be able to receive payment directly into their Jan Dhan-linked accounts as well. In these ways, the PMJDY creates financial well-being for urban and rural Indian people who have not yet benefitted from banking and services.
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