About the Scheme
Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched across the country in August 2014 as the National Mission for Financial Inclusion. It works on four guiding principles: banking the unbanked, securing the unsecured, funding the unfunded, and serving unserved and underserved areas. When the scheme was extended beyond 14.08.2018, its focus shifted from covering "every household" to covering "every unbanked adult". The scheme has also been made more attractive with two upward revisions: the overdraft limit went up from Rs. 5,000 to Rs. 10,000, and the accident insurance cover on RuPay cards went up from Rs. 1 lakh to Rs. 2 lakh.
Key Benefits Explained
- Basic Savings Bank Deposit Account: no minimum balance is needed, and you can deposit or withdraw cash at branches, ATMs and Banking Correspondents, with a cap of four cash withdrawals a month.
- Free RuPay debit card: it carries accident insurance of Rs. 2 lakh (Rs. 1 lakh if the account was opened before 28.08.2018). Illiterate account holders can also get the card, and bank officials explain how to use it and keep it safe when it is issued.
- Overdraft: up to Rs. 10,000 for one account holder per household after six months of satisfactory account conduct, with no processing fee.
- Interest is paid at the normal savings account rate, and mobile banking is available. A cheque book is not a mandatory feature; banks may offer it as per their own norms.
Small Account (Chota Khata) for People Without Documents
If you have no Officially Valid Document, you can still open a Small Account with a self-attested photograph and your signature or thumb impression in front of a bank official. Such an account has three limits: total credits of not more than Rs. 1 lakh in a year, total withdrawals of not more than Rs. 10,000 in a month, and a balance of not more than Rs. 50,000 at any time. It is normally valid for 12 months and can continue for another 12 months if you show proof that you applied for an Officially Valid Document within 12 months of opening the account.
Who Should Apply
Any Indian national who wants a basic bank account can apply, and minors above ten years can open an account with a guardian's support. Remember that one person can hold only one PMJDY account. In rural areas, Bank Mitras (Business Correspondents) bring banking services such as deposits, withdrawals, payments and mini statements closer to home.
Applying: Practical Points
- Download the Account Opening Form (English or Hindi) from the e-documents section of pmjdy.gov.in and submit it at your nearest bank branch.
- Keep Aadhaar, a government ID proof, an address proof and a passport size photograph ready, and carry your mobile number or email ID.
- If you do not have a valid residential proof, you can still open the account by providing an identity proof issued by the Government of India.
- You can later link your mobile number or change your address by contacting your bank.