Published by: ANUSHKA SHARMA

Under the Government’s initiative of National Mission for money Inclusion, the Pradhan Mantri Jan Dhan Yojana (PMJDY) theme was launched. The PM Jan Dhan Yojana was launched on28th August 2014 for an initial period of 4 years. However, given the recognition and also the benefits PMJDY scheme, it's been extended on the far side 28th August 2018.

PMJDY has provided a platform for the three social security schemes viz. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY) and Pradhan Mantri Mudra Yojana (PMMY).


The scheme was launched by PM Narendra Modi on 15 August 2014. Slogan of the Scheme is "Mera Khatha, Bhagya Vidhatha (meaning "My account brings me good fortune"). The scheme was launched after the failure of previous government schemes, including Swabhimaan. Swabhimaan was a 2011 campaign of the Government of India which aims to bring banking services to large rural areas.

PMJDY Eligibility

In order for individuals to open a PMJDY account, the below given criteria must be met:

a. One must be a Citizen of India.

b. One must have attained the age of 10 years.

c. One must not have an bank account.

Benefits of the Pradhan Mantri Jan Dhan Yojna

1. The right to a bank account

Under the PMJDY scheme, any person can sign up for a bank account with the most minimum number of documents. Special provisions are also put in place for people of rural areas who are unable to produce valid documents. 2. No minimum balance required

Accounts under the Jan Dhan Yojna can be opened with zero minimum balance. However, depending on the bank, a minimum balance may be required if the customer wishes to have additional facilities like cheque book, etc.

3. RuPay Debit Card

A Repay Debit Card will be provided to the person that can be used to withdraw money across all ATMs in India. 4. Insurance Cover

All members of the PMJDY scheme will be eligible for a life insurance cover of Rs 30,000/-, provided that they comply with certain requirements like opening the bank account before 26th January 2015. 5. Overdraft Facility

After 6 months of opening the account under the Pradhan Mantri Jan Dhan scheme, the account holder can avail overdraft facility of Rs 5000/- 6. Loan Benefits

Persons availing the PMJDY scheme are eligible for loans up to Rs.5000/- after 6 months of opening their bank account. Aimed at the rural population, such a loan benefit can help persons below the poverty line in cash crunch situations. 7. Simplified Mobile Banking

The PMJDY scheme allows users to check account details and transfer funds through a simplified mobile banking system, using simple mobile phones that people below the poverty line can afford, instead of smart phones.

Banks that provide the PMJDY scheme:

Private Sector Banks:

· Dhanalaxmi Bank Ltd.

· YES Bank Ltd.

· Kotak Mahindra Bank Ltd.

· Karnataka Bank Ltd.

· ING Vysya Bank Ltd.

· IndusInd Bank Ltd.

· Federal Bank Ltd.

· HDFC Bank Ltd.

· Axis Bank Ltd.

· ICICI Bank Ltd.

Public Sector Banks:

· Oriental Bank of Commerce (OBC)

· Union Bank of India

· Allahabad Bank

· Dena Bank

· Syndicate Bank

· Punjab & Sind Bank

· Vijaya Bank

· Central Bank of India

· Punjab National Bank (PNB)

· Indian Bank

· IDBI Bank

· Corporation Bank

· Canara Bank

· Bank of India (BoI)

· Bank of Maharashtra

· Andhra Bank

· Bank of Baroda (BoB)

· State Bank of India (SBI)

Features of PMJDY

Both Rural and Urban households are covered under the scheme. For every household, financial literacy, access to credit, insurance and pension it provides universal access to banking facilities with atleast one basic account.

Any citizen of India can open their account in any Private or Public Bank for 3 security schemes, PMJDY provided a platform namely Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), Atal Pension Yojna (APY) and Pradhan Mantri Mudra Yojna (PMMY).

Accounts opened under PMJDY with 0 balance. If the account – holder wants a cheque book then he/she has to fulfil minimum balance criteria. Under this scheme, the account holder are provided with a RuPay debit card which can be used across all ATM’s for cash withdrawal.

What is the impact of this scheme?


· Ensures bank accounts to them who didn’t have any.

· Direct Benefit Transfer.

· Bank statement history will be on Government Records.

· Loans will be easily accessible from formal financial institutions instead of other modes that charge high rate of interest.


· Businesses can profit out

· Manpower

· Time consumption

· Risks during cash transactions.

3. Government

· Easier monitoring of transactions and collection of financial data.

· Reduction of corruption because of recorded payments.

· A cash less economy

· It will also address social security errors and the issue of Black Money.


· Banks can get new costumers leading to an increased inflow of money.

· An increase in customers may result in potential clients who require other banking services like access to loans.

· Also, this scheme can promote differential banking, allowing the applicants to innovate without legacy constraints the older banks might face.

What is the recent status of the scheme?

· In September 2018, the government had relaunched PMJDY as an open-ended scheme with higher insurance cover and double the OD facility.

· The Union Cabinet had earlier decided to continue the scheme beyond the four-year period that ended on August 14, 2018, with an aim to take the formal banking system from every household to every adult.

· 20 Lakh people have joined the modified PMJDY that year which increased the total number of account holders in the flagship financial inclusion programme exponentially.

· Under the revamped scheme, the accident insurance cover for new RuPay cardholders has been raised from Rs.1 Lakh to Rs.2 Lakh for PMJDY accounts opened after August 28, 2018.

· The data also showed that nearly 7.18 Lakh people, who opened the PMJDY account after August 28, 2018, may have benefited from the increased accidental insurance cover of Rs.2 lakh.

· According to the latest data, the total balance in the Jan Dhan basic bank accounts stood at Rs.99, 752 crores with 35.50 crore beneficiaries.

· The Public Sector banks hold the majority of share with a total balance at Rs.79, 177 crores, followed by regional rural banks and private banks having Rs.17, 648 crores, and Rs.2, 926 crores respectively.

· The scheme emphasises on the rural areas with special focus given to women.

· Of the 35.50 crore account holders, those belonging to the rural and semi-urban regions are 21 crores. The female beneficiaries were 18.88 crores.


The theme has been criticized by opposition as an attempt to please voters that has created needless work-burden on the public-sector banks. in step with the consultants, offers like zero balance, free insurance and bill of exchange facility would lead to duplication. several people United Nations agency have already got bank accounts might have had accounts created for themselves, lured by the insurance covers and bill of exchange facilities. As per the theme, a really few folks are eligible to urge the life assurance life assurance 30,000 (US$420) with a validity of simply 5 years. The claimed bill of exchange facility has been fully left upon the banks. As per the govt notice, solely those folks would get the bill of exchange facility whose dealing record has satisfactory operations in their account for a few time.

In addition, whereas the Indian Government was actively trying to market money inclusion through this theme, the Federal Reserve Bank of India, allowable banks to charge customers for conducting ATM transactions on the far side an exact range of times per month. This effectively prevented folks from simply accessing their own savings and discouraged them from victimization formal banking channels.


PMJDY is a nationwide money inclusion theme that not solely brought within the informal sector to the thought economy however conjointly provided money skill to the poor and therefore the illiterate in each urban and rural areas. This is often a necessary theme that ensures inclusive growth of the state.