Jan Dhan Account Benefits: Pradhan Mantri Jan Dhan Yojana (PMJDY) is an important scheme of the Government of India which tries to connect every citizen of the country with banking facilities. This scheme was started by Prime Minister Narendra Modi on 15 August 2014. Its main objective is to connect the poor and deprived people with the economic mainstream.
Under Jan Dhan Yojana, any person can open a bank account without any minimum balance. This account not only becomes a medium for savings, but also opens the door to many other financial services and government benefits. Let us know about this scheme in detail and understand how it is bringing changes in the lives of common people.
What is Pradhan Mantri Jan Dhan Yojana?
Pradhan Mantri Jan Dhan Yojana is a national financial inclusion mission. Its aim is to connect every family of the country with banking facilities. This scheme is especially for those people who were deprived of banking services till now. Under this, people can open a bank account easily and without any cost.
Main features of Jan Dhan Yojana
| Speciality | Description |
| account type | Basic Savings Bank Deposit (BSBD) Account |
| minimum balance | no need |
| debit card | RuPay Debit Card Free |
| insurance cover | Accident insurance of ₹1 lakh |
| overdraft facility | up to ₹10,000 |
| Interest | At the rate fixed by the bank on the deposited amount |
| mobile banking | Available |
| Pension and Insurance Products | are linked |
Major benefits of Jan Dhan account
1. Zero Balance Account
- No minimum balance required
- Facility to open account without any charges
- Easy access to banking services for poor people
2. RuPay Debit Card
- Free RuPay Debit Card
- Facility to withdraw money and make purchases from ATM
- Online transaction facility
3. Insurance Protection
- Accident insurance cover of ₹1 lakh
- Life insurance cover of ₹30,000 (subject to certain conditions)
- financial security for the family
4. Overdraft facility
- Overdraft up to ₹10,000
- Financial assistance in case of emergency
- beneficial for small businessmen
5. Benefits of government schemes
- Government benefits directly into account through DBT (Direct Benefit Transfer)
- Direct transfer of subsidies and pensions
- Freedom from corruption and middlemen
6. Mobile Banking
- Availability of 24×7 banking services
- Facility to check balance and transfer funds
- Bill payment and recharge facilities
7. Financial literacy
- Awareness about banking system
- Development of habit of saving and investing
- understanding of financial planning
Who can open Jan Dhan account?
Following are the criteria for opening Jan Dhan account:
- any Indian citizen
- person above 10 years of age
- Account can be opened by guardian in case of minor
- A person can open only one Jan Dhan account
Documents required to open Jan Dhan account
- Aadhar card
- PAN Card (if available)
- Photo Identity Card (Voter ID, Driving License etc.)
- Address proof (ration card, electricity bill etc.)
- One passport size photo
Jan Dhan account opening process
- Visit any bank branch
- Fill the form to open Jan Dhan account
- Submit required documents
- Verification of documents by bank employee
- Get Account Number and Passbook
- Apply for RuPay Debit Card
Other facilities under Jan Dhan Yojana
1. Micro Insurance
- Insurance protection at low premiums
- Life and health insurance available
- increase economic security
2. Pension Plans
- Linkage to Atal Pension Yojana
- Financial security for old age
- provision of regular monthly income
3. Micro Credit
- Loan facility for small businesses
- low interest rate loan
- promote economic independence
4. Remittance facility
- Money transfer facility across the country
- Fast and secure transactions at low fees
- beneficial for migrant workers
Impact of Jan Dhan Yojana
- Increase in financial inclusion: Crores of people have been connected to banking services.
- Development of savings habit: People have started saving a part of their income.
- Promotion of digital transactions: Has helped in moving towards a cashless economy.
- Better implementation of government schemes: Benefits are being delivered directly to the beneficiaries through DBT.
- Economic empowerment: People from poor and deprived sections have been linked to the economic mainstream.
- Expansion of banking sector: Banking services have expanded in rural and remote areas.
Suggestions to further improve Jan Dhan Yojana
- Financial Literacy Campaign: To educate people about banking and financial management.
- Promotion of Mobile Banking: Making banking services more accessible through smartphones.
- Expansion of banking facilities in rural areas: Increasing the number of Bank Mitras and Micro ATMs.
- Strengthening security measures: Focusing on cyber security and fraud prevention.
- Regular monitoring: Identifying inactive accounts and making efforts to activate them.
Disclaimer
This article is for informational purpose only and the information given in it is based on general information. Although an effort has been made to provide accurate and up-to-date information at the time of writing this article, rules and provisions may change over time. Therefore, before taking any financial decision or opening a Jan Dhan account, please get the latest information from your nearest bank branch or official government sources.