Pradhan Mantri Jan Dhan Yojana

What Are The Special Benefits Of Pradhan Mantri Jan Dhan Yojana

What is Pradhan Mantri Jan Dhan Yojana Scheme

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a National Mission for Financial Inclusion that aims to provide inexpensive access to essential financial services such as savings and deposit accounts, remittance, credit, insurance, and pensions.

This scheme aims to ensure that the excluded sections, such as weaker sections and low-income groups, have access to various services such as basic savings bank accounts, need-based loans, remittances, insurance, and pension. The aim is to achieve this target with implementation of technology with low cost.

Economic resources of the country should be utilized for the well-being of the poor. The change will commence from this point.

Shri Narendra Modi (Honorable Prime Minister of India)

On 15th August 2014, Honorable Prime Minister Sh. Narendra Modi introduced the “Pradhan Mantri Jan Dhan Yojana (PMJDY),” a National Mission for Financial Inclusion.

This was then later launched across the country on 28th August 2014. The Pradhan Mantri Jan Dhan Yojana is at the heart of the “Sab Ka Sath Sab Ka Vikas” development idea.

Benefits of Pradhan Mantri Jan Dhan Yojana

Financial access to low income groups

This scheme provides a platform to open a basic bank account to low income citizens of the country in order to ensure all the basic banking facilities to the major residents of the country.

It also provides various financial facilities like basic bank account, provision of loans, internet banking, insurance and pensions. These benefits are passed to the rural sections of the country in order to uplift their financial lifestyle.

Internet banking facilities

In the generation of internet and technology, the rural India needs to adapt to the age of internet banking. This scheme allows the people of India to transfer money from person to another digitally. Also, this is a means to educate the rural people with the facilities available to transfer money from bank.

Account opening with zero balance

The main benefit of the Pradhan Mantri Jan Dhan Yojana is that they facilitate the opening of bank account with zero balance. Thus, the account holder needs not start the bank with initial balance or fall prey for the additional charges on the minimum account balance holding.

Provision of a Rupay Debit card

The National Payments Corporation of India (NPCI) designed and implemented Rupay as an Indian transnational financial services and payment service system.

This scheme aims to provide a Rupay Debit card to all its account holders. Thus, a debit card will facilitate more digital transactions between the people of the country.

Accidental insurance cover

As per the provisions under the Rupay Debit card under this scheme, every card holder will get an accidental cover of Rs. 2 lakhs. The benefits of this insurance will be available to card holders if they have made at least one financial transaction within 90 days prior to the date of accident.

Provision of loan facilities

The banking facilities under this scheme provides loan benefits of up to Rs. 5,000/- after 6 months from opening of bank account. As a result, these loan facilities can help the rural citizens of India to meet their short term needs or provide an aid to fund their agricultural business.

Overdraft facility

This scheme facilitates the account holders an over draft facility of up to Rs. 5,000/-. An over draft is when there isn’t enough money in an account to fund a transaction or withdrawal, but the bank approves it regardless.

Its a financial institution’s extension of credit given when a customer’s account balance reaches zero. The overdraft allows the account holder to withdraw money even if there are no funds in the account or insufficient cash to pay the withdrawal amount.

New approach in the PMJDY (Pradhan Mantri Jan Dhan Yojana) Scheme

  1. Focus on the household and sub service area for the coverage of the whole country
  2. Making the benefits of this scheme are available in both, rural and urban areas
  3. Simplified KYC/e-KYC in place as per RBI guidelines
  4. The rural branches of banks to have a dedicated Financial Literacy Cell


This scheme was launched with an aim to provide the basic banking facilities to all the citizens of the country. Indeed, opening of a bank account requires paper work, financial knowledge and some capital. Hence, private banks do not encourage the rural people to open a bank account as they may not provide the suitable business to the bankers.

To conclude, the implementation of this scheme will now encourage even the lower middle class people to start a bank account and begin their financial journey.

In a nutshell

Sr NoBenefits of Pradhan Mantri Jan Dhan Yojana
1Financial access to low income groups
2Internet banking facilities
3Account opening with zero balance
4Provision of Rupay Debit card
5Accidental insurance cover
6Provision of loan facilities
7Over draft facilities

Here are some quick links for account opening form:

More details about this scheme can be accessed from the official website of Pradhan Mantri Jan Dhan Yojana

Also read: What is Gold Monetization Scheme – Earn Money From Physical Gold



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