🏦 PMJDY
National Mission for Financial Inclusion ensuring access to basic savings accounts, credit, insurance, and pension for all.
Overview
PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely, a basic savings & deposit (BSBD) accounts, remittance, credit, insurance, pension in an affordable manner.
Under the scheme, a BSBD account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
Launch
- Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August 2014 by the Ministry of Finance, Government of India.
- Its tagline is "Mera Khata, Bhagya Vidhata".
- As of the latest data, 56.14 crore beneficiaries have been brought under the PMJDY, with a total balance of ₹264,195.21 crore in their accounts.
- Additionally, around 13.55 lakh Bank Mitras are providing branchless banking services across the country.
Benefits under PMJDY
| Benefit | Details |
|---|---|
| Basic Savings Account | One basic savings bank account is opened for unbanked person |
| Zero Balance | No requirement to maintain any minimum balance in PMJDY accounts |
| Interest | Interest is earned on the deposit in PMJDY accounts |
| RuPay Debit Card | RuPay Debit card is provided to PMJDY account holder |
| Accident Insurance | Cover of Rs.1 lakh (Enhanced to Rs. 2 lakh for accounts opened after 28.8.2018) |
| Overdraft Facility | Up to Rs. 10,000 to eligible account holders |
| Unconditional OD | No conditions for overdraft (OD) facility upto Rs 2,000 |
| Age Limit for OD | Revised from 18-60 years to 18-65 years |
Note: A minor can open a PMJDY account, but they must be at least 10 years old.
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Overview
PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely, a basic savings & deposit (BSBD) accounts, remittance, credit, insurance, pension in an affordable manner.
Under the scheme, a BSBD account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.
Launch
- Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August 2014 by the Ministry of Finance, Government of India.
- Its tagline is "Mera Khata, Bhagya Vidhata".
- As of the latest data, 56.14 crore beneficiaries have been brought under the PMJDY, with a total balance of ₹264,195.21 crore in their accounts.
- Additionally, around 13.55 lakh Bank Mitras are providing branchless banking services across the country.
Benefits under PMJDY
| Benefit | Details |
|---|---|
| Basic Savings Account | One basic savings bank account is opened for unbanked person |
| Zero Balance | No requirement to maintain any minimum balance in PMJDY accounts |
| Interest | Interest is earned on the deposit in PMJDY accounts |
| RuPay Debit Card | RuPay Debit card is provided to PMJDY account holder |
| Accident Insurance | Cover of Rs.1 lakh (Enhanced to Rs. 2 lakh for accounts opened after 28.8.2018) |
| Overdraft Facility | Up to Rs. 10,000 to eligible account holders |
| Unconditional OD | No conditions for overdraft (OD) facility upto Rs 2,000 |
| Age Limit for OD | Revised from 18-60 years to 18-65 years |
Note: A minor can open a PMJDY account, but they must be at least 10 years old.
Overdraft Facility - Detailed Provisions
The overdraft facility under PMJDY serves as an easy loan for the low-income group.
Eligibility for Overdraft
- Account in good standing for minimum 6 months.
- Overdraft given preferably to a family's earning woman.
- Regular credits via DBT or verified sources.
- Account linked with Aadhaar to avoid double benefits.
- One savings account rule; age between 18-65.
- Not for: Minors, KCC/GCC holders, or multiple family members.
Overdraft Loan Specifics
| Parameter | Details |
|---|---|
| Duration | 36 months (annual review) |
| Amount | Lesser of 4x monthly average or 50% of 6-month credit, up to ₹10,000 max |
| Interest | Up to 2% over the base rate |
| Processing Fee | Nil |
| Key Rule | Primary account for all subsidies; subsidy halt during loan period |
| Verification | Aadhaar verification through NPCI repository |
Additional Benefits
- Life Insurance: ₹30,000 with RuPay card.
- Facilitates easy money transfer nationwide.
- Direct Benefit Transfer (DBT) for government scheme beneficiaries.
Exam Tip: Under PMJDY, the limit for overdraft facility is ₹10,000 and it is available to 1 member of a household. Mutual fund is NOT associated with PMJDY.
Eligibility for Other Schemes
PMJDY accounts are eligible for:
- Direct Benefit Transfer (DBT)
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Atal Pension Yojana (APY)
- Micro Units Development & Refinance Agency Bank (MUDRA) scheme
Updates
- The success of the scheme has resulted in over 56+ crore beneficiaries, with over 55% of accounts held by women.
- For financial awareness, several campaigns were launched to reach last-mile beneficiaries. The Centre for Financial Literacy was initiated by RBI with an objective to adopt community-led innovative and participatory approaches for financial inclusion.
- A network of 13.55 lakh Bank Mitras was created to connect eligible people with banking services.
- 107 Digital Banking Units (DBUs) have been set up by banks (as of December 2024), offering facilities like opening savings accounts, passbook printing, fund transfers, loan applications, etc.
Key Points
| Parameter | Details |
|---|---|
| Launch Date | 28th August 2014 |
| Ministry | Ministry of Finance, Government of India |
| Tagline | Mera Khata, Bhagya Vidhata |
| Beneficiaries | 56.14 crore+ |
| Minimum Age | 10 years (for minors) |
| Accident Insurance | ₹2 lakh (for accounts after 28.8.2018) |
| Overdraft Limit | Up to ₹10,000 |
| PMJDY OD Limit | Max Rs. 10,000 (Age 18-65). Rs. 2000 w/o conditions. |
| PMJDY Insurance | Rs. 2 lac (Rupay Card). |
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Full Name | Pradhan Mantri Jan Dhan Yojana |
| Launch Date | 28th August 2014 by Ministry of Finance |
| Tagline | "Mera Khata, Bhagya Vidhata" |
| Objective | National Mission for Financial Inclusion — access to BSBD accounts, remittance, credit, insurance, pension |
| Account Type | Basic Savings Bank Deposit (BSBD) account; zero balance required |
| Minimum Age | 10 years (for minors) |
| RuPay Card | Provided to all PMJDY account holders |
| Accident Insurance | Rs. 2 lakh (for accounts opened after 28.8.2018); Rs. 1 lakh for earlier accounts |
| Life Insurance | Rs. 30,000 with RuPay card |
| Overdraft (OD) Limit | Up to Rs. 10,000; unconditional up to Rs. 2,000 |
| OD Age Eligibility | 18-65 years |
| OD Preference | Preferably given to earning woman of the family |
| OD Duration | 36 months (annual review) |
| OD Interest | Up to 2% over base rate; processing fee is Nil |
| OD Eligibility | Account in good standing for 6 months; linked with Aadhaar; 1 member per household |
| OD Amount Formula | Lesser of 4x monthly average or 50% of 6-month credit, max Rs. 10,000 |
| Beneficiaries | 56.14 crore+ with total balance of Rs. 2,64,195.21 crore |
| Women Accounts | Over 55% of total accounts |
| Bank Mitras | 13.55 lakh providing branchless banking |
| Digital Banking Units | 107 DBUs set up (as of Dec 2024) |
| Linked Schemes | DBT, PMJJBY, PMSBY, APY, MUDRA |
| Not Associated | Mutual funds are NOT associated with PMJDY |
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