In 2014, the Central Government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY), a mission to empower people financially and bring every section of society into the banking system.
This scheme allows Indian citizens to open a bank account with no initial deposit. It offers more than just the basics, including checkbooks, passbooks, accident insurance, and even an overdraft facility.
Under the overdraft feature, Jan Dhan account holders can withdraw up to Rs 10,000, even if their account has no balance.
So far, over 50 crore bank accounts have been opened under PMJDY. This scheme has made a significant impact, with a total deposit of Rs 2.03 lakh crore as of August 28, 2023. Additionally, more than 50 crore accounts have been opened under this initiative.
Minimum Balance Requirement
You can open a PMJDY account with zero balance, ensuring that even those with no funds can access banking services.
Currently, there are 50.70 crore beneficiaries registered in this scheme, with 56 percent of these accounts belonging to women.
About 67 percent of the Pradhan Mantri Jan Dhan accounts are opened for people in rural and semi-urban areas.
Furthermore, more than 34 crore RuPay cards have been issued in connection with these accounts.
Who Can Open an Account
Any Indian citizen can take advantage of this scheme. It was created to bring underserved populations into the banking fold,
and Jan Dhan accounts operate differently from regular ones, making them accessible to individuals of all ages.
Benefits of PMJDY
Financial Flexibility: PMJDY offers more than just basic savings accounts. It enables people to save, send and receive money, take loans from the bank, access insurance, and pension facilities.
Interest on Savings: Similar to regular accounts, Jan Dhan accounts provide interest on deposited amounts.
RuPay Card: Account holders receive a RuPay ATM card, along with accident insurance coverage of Rs 2 lakh and life coverage of Rs 30,000.
Overdraft Facility: Jan Dhan account holders can access an overdraft facility of up to Rs 10,000, even if their account has no funds.
