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Pradhan Mantri Jan Dhan Yojana


Pradhan Mantri Jan Dhan Yojana

India is known to be an extremely diversified country. This comes from the fact that it is one of the most populated countries in the world. However, it is also a country where more than half of its total population is under the poverty line. Hence, the need to introduce various measures which would directly provide benefits and subsidies to the poor and needy has always been prominent. For this very purpose,  the Government of India had enforced the Pradhan Mantri Jan Dhan Yojana. This scheme is considered one of the most potent plans that were bought into action along with the Digital India initiative. In this article, we dive into the details of this scheme and learn about it in depth.


The Pradhan Mantri Jan Dhan Yojana is an important project of the Government that aims to open a minimum of one bank account in every household across the nation. The main goal of this scheme is to ensure the simple and easy access to multiple financial services such as the availability of a basic savings bank account, access to the need-based credit, remittances facility, as well as insurance and pension to the weaker sectors and the low-income groups.

A bank account under the PMJDY scheme may be opened in any branch of any bank or any Business Correspondent outlet. Most bank accounts opened under this scheme are zero balance accounts. This is a significant scheme that helps the Government to deal with corruption as well. This is tackled as benefits, and other subsidies are credited to the user’s account directly without any mediator in the middle. This plays a significant role in uplifting the poor and to book the development of the country, both economically and socially.

The Future of Financial Inclusion

To his credit, the Prime Minister has said he wants to make India free from homelessness, if possible by as soon as 2022, which he also noted is India’s 75th year of Independence, so that India may become among the most progressive and prosperous countries in the world. To eliminate poverty, illiteracy and other regressive factors that even 65+ years after Independence persist on a more serious level than in most other industrialized countries remains something important for any government and people to tackle, if they want their country to become the best in the world and the envy of other nations. Large swathes of India’s poorest regions still live in miserable economic conditions, and this reflects badly on the country as a whole.

For if such massive poverty, illiteracy and other such negative factors were left unattended to, international businesses may think twice about coming to India, and hardly view it as an attractive destination. But all that is changing rapidly and in fact has changed to a large extent, and the rising disposable incomes of the general population, at least in urban areas, is a major factor indicated by businesses and foreign investors as the reason for what makes India a happening place to start a business in. The importance of CSR, social entrepreneurship, charitable ventures, NGO’s and such poverty alleviation schemes, then, to the overall well-being of a country and health of its economy should not be overlooked or understated.


To avail the various benefits of the Pradhan Mantri Jan Dhan Yojana scheme, the applicant has to fulfil either of the following criteria.

  • Any Indian citizen is eligible to open a bank account in any bank under the Pradhan Mantri Jan Dhan Yojana scheme.
  • Additionally, minors are eligible to open bank accounts under the PMJDY scheme. Minors may also avail the RuPay Card facility which they may use for 4 times in a month, without any additional charges, to withdraw money.
  • Individuals who do not have valid documents to prove their nationality would also be offered to open bank accounts under the PMJDY scheme. However, a ground search on the applicant would be conducted and would categorise them as low-risk individuals.
  • An existing savings bank account holder may choose to transfer their account to the PMJDY account in order to avail the benefits of the PMJDY scheme.

Note: The minimum age limit for a minor is 10 years. Income is not considered as a bar to open a bank account under the PMJDY scheme, although it is primarily focussed on the people below the poverty line. Any individual who crosses the age of 60 years would be required to exit the PMJDY scheme.

Documents Required

The following are the documents required to open an account under the Pradhan Mantri Jan Dhan Yojana scheme.

  • Passport
  • Driving Licence
  • Permanent Account Number Card (PAN)
  • Voter’s Identity Card issued by the Election Commission of India.
  • Job Card issued by the NREGA and duly signed by an officer of the State Government.
  • Letter issued by the UIDAI comprising of details such as Name, Address and Aadhaar number.
  • Any other documents as notified by the Central Government in consultation with the Regulator.
  • An individual may submit an authority letter, issued by a gazette officer, stating that the applicant is a citizen of India in the absence of valid identity proof.
  • If an applicant fails to provide any valid address proof, then the bank can conduct a primary background check on the individual. If the bank certifies the individual as a low-risk, they may open a bank account under the PMJDY for 12 months. This temporary account may be converted into a permanent account by submitting the essential documents before the provided duration.


The Pradhan Mantri Jan Dhan Yojana focuses on the betterment of the poor and backward sectors of the society. The scheme is a national mission that incorporates an integrated approach in order to bring about a comprehensive financial inclusion of every household in India. The following are the significant benefits of the PMJDY scheme under various sections.

Loan Benefits

The following are the loan benefits of the Pradhan Mantri Jan Dhan Yojana scheme.

  • An account holder under this scheme can enjoy the benefit of accessing a loan up to INR 5,000 from their respective bank after 6 months from opening the PMJDY scheme account.
  • This benefit is specially offered to those who are below the poverty line.
  • The amount obtained as loan may be invested in various other areas, for example, in agriculture or farming.
  • The account holder may also choose to increase the loan about as per their repayment tenure.
  • The tenure of the loan under the PMJDY scheme is 36 months.
  • The loan comes with absolutely NO processing fees.

Insurance Benefits

The following are the insurance benefits of the Pradhan Mantri Jan Dhan Yojana scheme.

  • The account holders under the PMJDY scheme may avail an insurance accidental life cover and life cover benefits as a part of the programme. The scheme enables the account holders to enjoy life-accidental life insurance coverage upto INR 1,00,000 and a life insurance coverage worth INR 30,000.

Special Benefits

The following are the exclusive benefits of the Pradhan Mantri Jan Dhan Yojana scheme.

  • The bank accounts opened under the PMJDY scheme are zero balance accounts.
  • The account holder is required to maintain any minimum balance in this account.
  • Account holders would be offered with the Rupay Kisan Debit Cards in order to withdraw money from ATMs as and when they require.
  • Account holders have the benefit of getting a striking interest on their deposit.
  • To continue the account, the holder is not required to keep any minimum balance.
  • The PMJDY scheme permits the account holder to transfer funds anywhere in India quickly.
  • The bank account offers the facility of Direct Benefit Transfer for beneficiaries of any Government schemes.
  • Account holders can easily access pension and other insurance products offered through the PMJDY scheme.
  • Overdraft facility up to INR 5,000 is available in only 1 bank account per household, preferably to the woman of the family.

Mobile Banking Benefits

The following are the mobile banking benefits of the Pradhan Mantri Jan Dhan Yojana scheme.

  • The PMJDY scheme is simple, easy and convenient to access as it comes with various mobile banking benefits as well.
  • Any account holder will be able to check and transfer the account balance with a standard cell phone. A majority of India’s citizens are now able to avail this scheme as affording a cellphone is the least of the problems.

Overdraft Benefits and Facilities

Overdraft facility offers the account holder to withdraw money from their respective accounts even when there is no balance in the said account. An account holder under the Pradhan Mantri Jan Dhan Yojana scheme may avail the overdraft facility as required. This facility even helps the account holder to pay a cheque amounting to INR 2,000 when they have no remaining funds in their account. In such cases, the cheque will not bounce for an account which has availed the overdraft facility. The facility would be accessed when ATM withdrawals are made without the knowledge of the balance in the debit card.

  • The overdraft facility is offered to every account holder under the PMJDY scheme.
  • An overdraft facility of INR 5,000 is accessible to any one account holder in one household. Generally, the female members are given preference for the overdraft facility.
  • The overdraft facility will be accessible to a customer only after 6 months from the date of the opening of the bank account under the PMJDY scheme.
  • The account holder must maintain a good transaction record in order to avail this facility.
  • The account holder is also required to have a good credit history.
  • However, there is a nominal interest rate that is charged to the account holder while the overdraft facility. Generally, the interest rate is between 12% per annum to 20% per annum, as set by the respective banks.

PMJDY Life Cover

The PMJDY Life Cover of INR 30,000 to the family members of the user, in case the life assured passes away. This benefit applies to those users who opened their bank accounts under the PMJDY scheme from the 15th of August, 2014 to the 26th of January, 2015. An account holder is required to fulfil the following conditions to avail the multiple benefits of the PMJDY Life Cover.

  • The PMJDY account must have been opened between the 15th of August, 2014 to the 26th of January, 2015 and it should be the first account opened by the individual.
  • The PMJDY account holder must belong to the age group of 18-59 years, and they should be the head of their respective family or a source of income for their household.
  • The second earning member of a family shall be covered under this benefit under the circumstances that the head of the family is more than 60 years old.
  • The beneficiary of the life cover must have a RuPay Card and a Biometric Card linked to their respective bank account.
  • The RuPay Card must be valid at the time of availing benefits of the life cover.
  • Only a single individual shall be entitled to enjoy the life coverage under this scheme. If the individual of the same family has multiple bank accounts or cards, the benefits will be estimated based on a single account and not more.
  • The PMJDY Life Cover will be valid for 5 years; till the end of the financial year of 2019 and 2020. After that, the scheme will be reviewed again, and certain terms and conditions might be subjected to change.

Claim Settlement

As per the claim settlement procedure set by the PMJDY, An individual is required to adhere to the following norms as prescribed by the PMJDY.

  • An amount of INR 30,000 is payable to the beneficiary account holder following the death of the account holder. The amount will be paid to the individuals of age 18-60 years.
  • The Nodal/ District branch of the concerned bank will collect all the relevant claim papers and submit the same to the Pension and Group Scheme Unit of the LIC to process it further.
  • The life cover claim will be paid to the nominee listed in the PMJDY bank account.
  • The nominee would receive the claim in their bank accounts directly through NEFT/ APBS.

Application Procedure

Step 1: Download the application form for the Pradhan Mantri Jan Dhan Yojana Scheme in English or Hindi, as you require.

Step 2: Once that’s done, fill in the required personal information in their relevant field that will be registered with your PMJDY bank account.

  • Name
  • Address
  • Occupation
  • Annual income of the applicant.
  • Existing PMJDY bank accounts of any family members, if any.
  • Kissan credit card number, if any.

Step 3: Then mention the bank’s name and the required bank branch’s IFSC where you wish to open your PMJDY account.

Step 4: The following details of the bank of your choice would be required to be filled accurately.

  • Name of the bank of your choice.
  • Village/ town of the bank branch
  • Sub-district/ block name of the bank branch
  • District that the bank branch falls under.
  • State the branch is situated in.
  • SSA Code/ Ward Number
  • Village code/ town code

Step 5: Check on the box for the option of receiving a Rupay debit card along with the bank account opening.

Step 6: Along with the scheme application, you have to submit the following documents for identification and address proof.

  • PAN card
  • Voter’s ID card
  • Ration card
  • Aadhaar card
  • Any Government ID proof
  • Electricity Bill for proof of address.
  • Water bill for proof of address.
  • Gas connection bill for proof of address.

Once you have successfully used the PMJDY account for 6 months, you will be eligible for an overdraft amount of INR 5,000 as a part of the scheme from the Government.

Queries, Grievances and Complaints

For those citizens having queries, grievances or complaints concerning the Pradhan Jan Dhan Yojana scheme, the Government has set up dedicated toll-free connections for this very purpose. The toll-free numbers are as follows:

  • 1800 110 011
  • 1800 180 111