PRADHAN MANTRI JAN DHAN YOJANA (PMJDY)

• Ensure access of financial products & services at an affordable cost
• Use of technology to lower cost & widen reach
• Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
• Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs
• Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit

Key features of Pradhan Mantri Jan Dhan Yojana (PMJDY):

1. No Minimum Balance Requirement: Under this scheme, individuals can open a bank account with zero minimum balance requirements. This is particularly beneficial for those who were unable to open bank accounts due to financial constraints.

2. Access to Banking Facilities: Account holders are provided with a basic savings account that allows them to deposit and withdraw money, and it also comes with a RuPay debit card which enables access to ATMs and facilitates cashless transactions.

3. Accidental Insurance Cover: Account holders are eligible for accidental insurance coverage. Initially, the insurance coverage was Rs. 1 lakh, but it was increased to Rs. 2 lakh.

4. Overdraft Facility: After a certain period of satisfactory operation of the account, account holders are eligible for an overdraft facility of up to Rs. 10,000, which helps them during emergencies.

5. Financial Literacy Programs: The scheme also emphasizes financial literacy and aims to educate account holders about the benefits of formal financial services, proper money management, and the importance of saving.

6. Direct Benefit Transfer (DBT): PMJDY accounts are often linked to various government welfare schemes, allowing beneficiaries to receive subsidies and benefits directly into their bank accounts, reducing leakages and ensuring efficient delivery of services.

7. Pension Schemes: Account holders can also access pension schemes like Atal Pension Yojana and Pradhan Mantri Shram Yogi Maan-Dhan Yojana, which provide social security and retirement benefits.

8. Mobile Banking: The scheme promotes the use of mobile banking through USSD (Unstructured Supplementary Service Data) codes, allowing account holders to access banking services using basic mobile phones.