Winning Bizness Desk

Mumbai.Prime Minister Jan Dhan Yojana (PMJDY) has completed 11 years today, 28 August. The scheme was launched on 28 August 2014 to ensure that every citizen, especially the poor and those living in rural areas, could have access to a formal bank account. Till date, more than 561.6 million bank accounts have been opened under this scheme. A notable fact is that 56 per cent of these accounts belong to women, making it one of the largest financial inclusion efforts in the world.

What the Jan Dhan Yojana actually means

The Jan Dhan Yojana, also known as PMJDY, is a flagship programme of the Government of India. Its primary goal is to give banking access to those who were excluded from the system. People who had no access to banks earlier, such as daily wage workers, farmers, small traders, and rural households, were targeted through this scheme. The account under this programme is a zero-balance account, which means that no minimum deposit is required to open it. This has enabled millions to open their first-ever bank accounts without any financial burden.

Benefits provided under the Jan Dhan scheme

The scheme offers several advantages to account holders. First, anyone can open a zero-balance savings account. Second, every account comes with a RuPay debit card that can be used for cash withdrawals and payments. Third, the account provides accidental insurance cover of up to two lakh rupees linked to the RuPay card. Fourth, account holders can also get an overdraft facility of up to ten thousand rupees. Fifth, government subsidies such as cooking gas subsidy and welfare payments are directly transferred to these accounts through the Direct Benefit Transfer (DBT) mechanism. In addition, account holders earn savings interest on their deposits just like regular bank accounts.

Who can open an account under the scheme

Any person who does not already have a bank account is eligible to open one under PMJDY. The account can be opened at any bank branch or with the help of a banking correspondent, also known as a bank mitra. The purpose is to make the process simple and accessible even in remote areas. This flexibility ensures that no citizen is left out of the banking system due to lack of opportunity or resources.

Easy process to open a Jan Dhan account

Opening an account under this scheme is very easy. An Aadhaar card is usually the main document required. In case Aadhaar is not available, other valid documents such as voter identity card, driving licence, or passport can be submitted. Address proof can be shown through Aadhaar, ration card, or electricity bill. Additionally, one or two passport size photographs are needed. People can visit their nearest bank, post office, or bank mitra to fill out a simple form and open an account. In many areas, online account opening has also been made possible, further reducing barriers for citizens.

Story in a nutshell

• Prime Minister Jan Dhan Yojana turns 11 years on 28 August
• Over 561 million bank accounts opened since 2014
• 56 per cent of account holders are women
• Scheme offers zero balance savings accounts to all
• Free RuPay debit card with accidental insurance cover
• Overdraft facility of up to ten thousand rupees
• Direct transfer of government subsidies to accounts