Things to know about Pradhan Mantri Jan Dhan Yojana

[Kanika Shelatkar]

The Indian Prime Minister, Narendra Modi, launched several schemes aimed at people of different income groups, particularly those in the middle- and lower-income groups. The Pradhan Mantri Jan Dhan Yojana or PMJDY is the most popular scheme of the different ones. But what is it about?

Overview
The PMJDY, launched in August 2014, is a saving scheme to ensure that every Indian citizen can hold a Savings Account and gain a sense of financial independence without having to worry about account balances. This programme aims at people who come from the Economically Backward Section.

It encourages them to open an account and take advantage of a variety of financial services. Account-holders are eligible for benefits such as credit insurance and pensions along with easy and affordable remittance, among other things. This is a Zero-Balance Savings Account.

Benefits

Zero-balance savings scheme
The Jan Dhan Yojana Account is a Zero-Balance Savings Account. It means that account holders need not bother about maintaining a specific balance in the account monthly. They do not get charged or penalised if their minimum monthly amount is not met.

Loans and overdraft facilities
People from lower-income groups do not hold any Bank Account and rely on private money lenders for loans. These lenders frequently charge hefty interest rates, compounding their financial troubles and trapping them in a never-ending cycle of loans and equated monthly instalments.

Account-holders should apply for loans at low interest rates through PMJDY. If you have kept your accounts in good standing for six months, you might receive Rs. 5,000 overdraft on your savings in the PMJDY account.

Accident and Life Insurance Cover
Because individuals from lower socioeconomic groups cannot afford insurance, the Jan Dhan Bank Account offers an additional incentive in Accident and Life Insurance Coverage. This coverage is part of your RuPay Debit Card, and account holders receive Rs. 1 lakh as Accidental Insurance and Rs. 30,000 as Life Insurance, respectively.

Benefits from government programmes
The PMJDY Scheme enables you to access your pension accounts conveniently. Those who contribute to government programmes like the Senior Citizen Saving Scheme or the Atal Pension Yojana must choose their benefits deposited straight into their PMJDY Scheme.

Now that you are aware of PMJDY and its services consider opening an account and taking advantage of the perks. Find out how to open one at your nearby bank.