Jan Dhan Yojana: PMJDY account gives up to Rs 1.3 lakh accidental death insurance, Rs 5,000 overdraft facility too!

PMJDY: The Pradhan Mantri Jan Dhan Yojana that allows people to open a Jan Dhan account has some benefits beyond financial inclusion. It is one of the most ambitious financial inclusion programmes launched by the government, but there are some other benefits beyond this. For example, in the case of normal bank savings account, one will be penalised for not maintaining the minimum balance while in the case of Jan Dhan khata, it's zero balance savings account.

Speaking on the overdraft and insurance benefit falling under the Jan Dhan account; SEBI registered tax and investment expert Jitendra Solanki said, "Despite being a no frills account, the Pradhan Mantri Jan Dhan Yojana (PMJDY) account, however, provides overdraft facility and RuPay debit card with inbuilt Rs 1 lakh accident insurance cover to the holders, apart from the luxury of not maintaining a minimum account balance." He said that a Jan Dhan  account holder gets RuPay debit card that also provides Rs 30,000 accidental death insurance cover. So, a nominee of a Jan Dhan account holder can claim up to Rs 1.3 lakh accidental death benefit.

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On overdraft facility under Pradhan Mantri Jan Dhan Yojana, SEBI registered tax and investment expert Manikaran Singhal said, "To become eligible for the overdraft facility, a new Jan Dhan account holder needs to maintain a healthy positive balance for the first six months and should do regular cash transactions and transactions through the RuPay debit card issued to him or her. If satisfied, the bank, in which the Jan Dhan account has been opened, would provide the account holder the overdraft facility of up to Rs 5,000, provided it’s an Aadhaar-linked account." However, he said that the overdraft facility may be used by the account holder by paying a nominal rate of interest.