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Pradhan Mantri Jan Dhan Yojana (PMJDY)

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Pradhan Mantri Jan Dhan Yojana (PMJDY) Logo
Pradhan Mantri Jan Dhan Yojana (PMJDY) Logo

In News : Pradhan Mantri Jan Dhan Yojana (PMJDY) exempted from Service Tax

  • In order to promote financial inclusion, the Government has exempted services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificates and Aadhar seeding, in the rural area branches of banking companies, from Service Tax.
  • The services provided by any person as an intermediary to a business facilitator or a business correspondent with respect to the above mentioned services, have also been exempted from Service Tax.

Objective of Pradhan Mantri Jan Dhan Yojana (PMJDY)

  • Objective of Pradhan Mantri Jan Dhan Yojana (PMJDY) is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups. This deep penetration at affordable cost is possible only with effective use of technology.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility. In addition, the beneficiaries would get RuPay Debit card having inbuilt accident insurance cover of र 1 lakh. The plan also envisages channelling all Government benefits (from Centre / State / Local Body) to the beneficiary’s accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union Government. The technological issues like poor connectivity, on-line transactions will be addressed. Mobile transactions through telecom operators and their established centres as Cash Out Points are also planned to be used for Financial Inclusion under the Scheme. Also an effort is being made to reach out to the youth of this country to participate in this Mission Mode Programme.

Pradhan Mantri Jan Dhan Yojana (PMJDY) Scheme Details

  • Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
  • Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfil minimum balance criteria.

Documents required to open an account under Pradhan Mantri Jan Dhan Yojana (PMJDY)

  • If Aadhaar Card/Aadhaar Number is available then no other documents is required. If address has changed, then a self-certification of current address is sufficient.
  • If Aadhaar Card is not available, then any one of the following Officially Valid Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport & NREGA Card. If these documents also contain your address, it can serve both as “Proof of Identity and Address”.
  • If a person does not have any of the officially valid documents mentioned above, but it is categorized as low risk by the banks, then he/she can open a bank account by submitting any one of the following documents:
    • Identity Card with applicant’s photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;
    • Letter issued by a gazette officer, with a duly attested photograph of the person.

Special Benefits under Pradhan Mantri Jan Dhan Yojana (PMJDY) Scheme

  • Interest on deposit.
  • Accidental insurance cover of Rs.1.00 lac.
  • No minimum balance required.
  • Life insurance cover of Rs.30,000/-
  • Easy Transfer of money across India.
  • Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
  • After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
  • Access to Pension, insurance products.
  • Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
  • Overdraft facility up to Rs.5000/- is available in only one account per household, preferably lady of the household.

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