Pradhan Mantri Jan Dhan Yojana (PMJDY): Eligibility criteria, minimum balance and other benefits

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has seen significant progress with the opening of more than 50 crore accounts under the scheme in the last nine years since its launch. According to the Finance Ministry, the total deposits in Jan Dhan accounts have surpassed Rs 2 lakh crore mark.

However, several people are still not aware of how the scheme works and how they can avail it. Here is a look at key features of Pradhan Mantri Jan Dhan Yojana (PMJDY), eligibility criteria and benefits.

Eligibility criteria for PMJDY

The PMJDY scheme aims to promote financial inclusivity in the unbanked and underbanked sections of the nation, thereby catering to the specific needs of people belonging to economically backward sections. The PMJDY eligibility criteria mention that any Indian citizen can open a bank account regardless of their age. Further, the scheme focuses on the financially weaker sections of the society and aims to increase their inclusion in mainstream financial services. The scheme aims to uplift the social status of the people belonging to lower-income groups and marginalised sections.

What is the minimum balance requirement for PMJDY accounts?

One feature that makes the PMJDY scheme stand out compared to a regular savings account is its minimalistic approach to the minimum balance requirement. While traditional banking systems demand a significant amount of initial deposits along with maintaining a certain amount of monthly balance, the PMJDY scheme works the other way round. Under PMJDY, the beneficiary can open a bank account with zero balance. This feature makes banking services accessible to those who were once excluded from availing the formal banking services due to financial limitations.

Benefits of PMJDY

The PMJDY scheme has helped several people from the unbanked sectors of the society along with those who belong to lower-income groups.  

1.  Financial Inclusion: Marginalised sections of the society can avail formal financial services easily, thus, ensuring that the government subsidies and benefits can reach them adequately.

2.  Insurance Coverage: PMJDY accounts provide insurance coverage and therefore, it can help weaker sections of the nation in minimising the risks due to accidents or unfortunate death. The life insurance coverage is Rs 30,000 and for Rupay card holders under the scheme the accidental insurance coverage is Rs 2 lakh.

3.  Overdraft Facility: Such facilities are mostly available in the traditional banking sector. However, PMJDY bridges the gap and aids the underprivileged citizens to take advantage of the overdraft facilities in case of a financial emergency.