Pradhan Mantri Jan Dhan Yojana

Introduction:

Pradhan Mantri Jan Dhan Yojana is a National Mission for Financial Inclusion launched in August 2014
Aimed at providing basic financial services to citizens including deposit and savings accounts, credit, remittance, pension, insurance, etc.

Ministry/Agency:

Objectives:

Cover every household with a basic bank account and a RuPay Debit Card
Provide an inbuilt insurance cover worth ₹100,000 and an overdraft facility of up to ₹5,000
Extend the Financial Literacy Program to grassroots levels of villages
Create Credit Guarantee Fund for covering defaults in overdraft accounts
Provide microinsurance to eligible citizens
Design pension schemes for the unorganized sector

Benefits:

Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirement and up to 4 cash withdrawals per month
Small Account/Chota Khata Account for people without legal documents and ID proofs
RuPay Debit Card with credit facilities and domestic merchant offers
Accidental Insurance Cover of ₹1,00,000 for non-premium card holders and up to ₹2,00,000 for premium card holders
Life Cover Insurance up to ₹30,000 for the head of the family or major earning member
Bank Mitra or Business Correspondent Agent to provide advisory services for banking solutions in rural areas
Interest on deposits and overdraft facility up to ₹10,000
Loans up to ₹5,000 for beneficiaries after six months of account transactions

Eligibility:

Indian citizens aged between 18 and 59 years
Minors above ten years require support from their legal guardians for administering their PMJDY account
Retired bank employees, teachers, government employees, individual owners of shops, Public Call Office operators, owners of petrol pumps, agents of small scheme companies, etc., can also apply
State or Central Government employees, public sector employees, and people with taxable income are not eligible for life cover insurance under Jan Dhan Yojana

Implementation Strategy:

Districts are divided into Sub Service Areas (SSA) to ensure banking services are available to all
Direct Benefit Transfer under Indian Government schemes
Financial Literacy Program extended to grassroots levels of villages