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Pradhan Mantri Jan Dhan Yojana (PMJDY) : A mega financial inclusion scheme


The Pradhan Mantri Jan Dhan Yojna (PMJDY), a mega financial inclusion scheme, launched by government of India to cover those households who do not have bank accounts at present and belonging to poor section.

Special Benefits under PMJDY Scheme

  1. Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet.
  2. Accidental insurance cover of Rs.1.00 lac.
  3. No minimum balance required. PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria. Interest will be paid on the balance maintained in the bank account.
  4. Life insurance cover of Rs.30,000/-.
  5. Easy Transfer of money across India.
  6. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
  7. After satisfactory operation of the account for 6 months, an overdraft facility will be permitted. Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.
  8. RuPay Debit Cards are issued free of cost, which must be used at least once in 45 days.

The scheme ‘Pradhan Mantri Jan Dhan Yojana’ was originally known as financial inclusion programme. The revised programme with new name ‘Pradhan Mantri Jan Dhan Yojana’ symbolizes the rejuvenated effort of the present government to include the under privileged section of our society to the financial products offered by the banks and insurance companies. Financial inclusion is the programme to include the under-privileged section of our society who is so far excluded from financial products. The financially excluded are the section of our society which lives in utter poverty. This section has been deprived of banking facilities due to lack of access to safe financial products suitable to their needs, as commercial banks in India stayed away from conventional small amount finance in interior rural areas. Financial illiteracy, non-suitability of financial product  provided by banks, lack of correct advise on banking facilities are some of the reasons for their financial exclusion.

Hence, ‘Pradhan Mantri Jan Dhan Yojana’ is designed to include the under privileged people of the society to main stream financial activities and deliver affordable financial products to them.  It is hoped that the launching of the new scheme would address the financial imbalance between different sections of the society, along with launching of other poverty elevation programmes of the government. The following are the salient features of Pradhan Mantri Jan Dhan Yojana (PMJD Scheme) ;

  • Target group is those households who do not have bank accounts at present and belonging to poor section.
  • Bank accounts will be opened without much hassle and formality. RBI has issued guidelines to banks that KYC norms may be exempted for first 6 months for opening such accounts with maximum turnover of Rs. One lakh and balance in the account should not be more than Rs. 50,000 at any time.
  • The account holder will be entitled to receive “RuPay” Debit card issued by National Payment Corporation of India simultaneously with opening of the account from day one free of cos
  • The account holders will be automatically covered for accident insurance up to Rs. One lakh under the policy issued by HDFC free of cost every year.
  • In addition of the above, those who open accounts under the scheme by 26.01.2015 will be entitled to receive automatic life cover of Rs. 30,000 under the policy issued by Life Insurance Corporation of India, free of cost.
  • Account holder will be eligible to receive overdraft facility of Rs. 5000 after 6
    months of opening the bank account on automatic basis.

The following 4 agencies in addition to government of India and RBI namely ( i ) Banks (ii) National Payment Corporation of India for issuing RuPay Debit card (iii) HDFC Aro for issuing accident policy and settlement of claims (iv) LIC for issuing life cover and settlement of claims will be responsible for successful implementation.

(Source : On the basis of communications issued by the government and RBI and news items appearing in the media on the subject)

Related article:

Why ‘Basic Savings Bank Deposit Account’ is introduced in banks?

Things to know about life Insurance claim under PMJDY

 

 

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