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Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan Dhan Yojana (PMJDY) - National Mission for Financial Inclusion recently completed eight years of its implementation.

Why in news?

Pradhan Mantri Jan Dhan Yojana (PMJDY) – National Mission for Financial Inclusion recently completed eight years of its implementation.

About Pradhan Mantri Jan Dhan Yojana (PMJDY):

  • PMJDY is a National Mission for Financial Inclusion launched in August 2014 to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance and Pension, in an affordable manner.
  • It envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension.
  • 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 applicant should be an Indian National.
  • Any individual above 10 years can open a bank account.
  • If minors above ten years apply, they will require support from their legal guardians to administer their PMJDY account.
Pradhan Mantri Jan Dhan Account:
  • An individual can consider opening an account under this scheme with any bank branch or Business Correspondent (Bank Mitr) outlet. 
  • Further, accounts opened under PMJDY can be opened with zero balance.
  • However, if the account holder wishes to get a chequebook, he/she will have to fulfil the minimum balance criteria. 
  • The account holders under this scheme will be given a RuPay debit card which can be used across all ATMs for cash withdrawal.

What are the benefits of the PMJDY scheme?

Pradhan Mantri Jan Dhan Yojana (PMJDY) was introduced with a target of opening bank accounts for around 7.5 crores uncovered households in India by 26th of January, 2015. This scheme was successful in opening around 12.54 crore accounts by 31st January 2015 with deposits exceeding Rs. 10,000 crores. PMJDY scheme is also certified by the Guinness World Records for its achievements which states that most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India.

Some of the benefits provided under this scheme are mentioned below:

  • The scheme covers both the urban as well as rural areas and provides an indigenous Debit Card (RuPay card) to each of its account holders.
  • No minimum balance is required for opening an account under this scheme. The beneficiary can open his/her account in any bank branch or Business Correspondent outlet at zero balance.
  • It ensures to provide on Core Banking System (CBS) along with mobile banking using USSD facilities. A facility of call center and a toll-free number is available nationwide.
  • Pradhan Mantri Jan Dhan Yojana provides each beneficiary with basic banking accounts with a debit card with inbuilt accident insurance.
  • Rs. 5,000 overdraft facility for Aadhar-linked accounts as well as a RuPay debit card with inbuilt Rs. 1 lakh accident insurance cover is one of the main features provided by this scheme.
  • For accounts that are opened between 15th August 2014 and 26th January 2015, a Life Insurance cover of Rupees 30,000 is provided to the eligible beneficiaries. Also after remaining active for 6 months, the beneficiary will be eligible for an overdraft of up to Rs 5,000.


  • Jan Dhan accounts are prone to problems of zero balance, duplication and dormancy.
  • The technological issues affecting banks from poor connectivity, networking and bandwidth problems to managing costs of maintain infrastructure especially in rural areas

Way ahead

  • Endeavour to ensure coverage of PMJDY account holders under micro insurance schemes. 
  • Eligible PMJDY account holders will be sought to be covered under PMJJBY and PMSBY.
    • Banks have already been communicated about the same.
  • Promotion of digital payments including RuPay debit card usage amongst PMJDY account holders through the creation of acceptance infrastructure across India
  • Improving access of PMJDY account holders to Micro-credit and micro-investment such as Flexi-recurring deposit etc.

MCQs about Pradhan Mantri Jan Dhan Yojana (PMJDY)

Question 1: When was the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched?

A) August 2010
B) January 2015
C) August 2014
D) January 2010

Question 2: What is the primary goal of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

A) Promote digital literacy
B) Provide universal healthcare coverage
C) Ensure access to financial services for all
D) Encourage entrepreneurship

Question 3: Who is eligible to open an account under the PMJDY scheme?

A) Only individuals above 18 years
B) Only individuals above 21 years
C) Any individual above 10 years
D) Any individual above 18 years

Question 4: What is the significance of the RuPay debit card provided under PMJDY?

A) It provides access to free Wi-Fi
B) It comes with an inbuilt accident insurance cover
C) It offers unlimited international transactions
D) It can only be used for cash withdrawal at ATMs

Question 5: What is one of the challenges associated with the Jan Dhan accounts?

A) High interest rates
B) Lack of banking infrastructure in urban areas
C) Lack of awareness among potential beneficiaries
D) Mandatory minimum balance requirement

Read also:- Pradhan Mantri Mudra Yojana : Credit saturation for livelihoods

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