Pradhan Mantri Jan Dhan Yojana- Features, Benefits, Eligibility Criteria, and Life Cover

Mr Narendra Modi, the Prime Minister of India, established the Pradhan Mantri Jan Dhan Yojana in 2014. The Pradhan Mantri Jan Dhan Yojana intends to provide access to financial services, like banking, credit, savings, deposits, pensions, and insurance, to the underserved and low-income parts of society. PMJDY makes these products and services accessible to the general public at a low cost. PMJDY accounts can be opened with no money in them at any branch or business organisation location. As the account holder, you must maintain the appropriate minimum balance if you want a chequebook for the PMJDY bank account. Approximately 32.41 crore Jan Dhan accounts have been opened under this initiative, with a deposit amount of over Rs 81,200 crore. The PMJDY’s main goal is to stimulate people to utilise banking in India and thereby increase the number of people who use it.

Key Features of Pradhan Mantri Jan Dhan Yojana

• Account holder receives Rupay debit card.
• No minimum balance is required.
• Rs.1 lakh of accident insurance cover free.
• Accounts opened after 28.8.18 will get an accidental cover of Rs 2 lakh

An unusual element was added to the rest of the characteristics at the time of the scheme’s creation. A life insurance cover of Rs. 30,000 was included as an extra essential feature for all new account users. This is only available if you sign up for the PMJDY scheme. The Life Insurance Corporation of India provides this life insurance (LIC). In this arrangement, an exclusive fund has been established to pay out these claims. The premium is deducted from the Social Security Fund. The rest of the 50% premium is covered by the State government or the Union Territory for rural landless households. The Nodal agency/State Government/Union Territory maintains a 50% premium for other field groups.

Benefits of Pradhan Mantri Jan Dhan Yojana

There are numerous advantages to the PMJDY plan for both you and the country as a whole. The country’s economy will undoubtedly flourish if banking reforms are implemented, as well as making insurance and other services available to people from all walks of life. This scheme’s remunerative features are unquestionably worth investing in.

• Interest on deposits.
• Nil minimum balance.
• Rs. 1 lakh insurance cover for accidents.
• Accounts opened after 28.8.18 will get an accidental cover of Rs 2 lakh
• Rs. 30,000 life cover provided by LIC.
• Hassle-free transfer all around India.
• Government scheme beneficiaries receive Direct Benefit Transfer in this account.
• Overdraft service provided after 6 months of account operation.
• Rs. 5000 of overdraft service is available to one person in each household. Most preferably a lady.
• Insurance and pension products are available.
• The claim for Personal Accident Insurance under the PMJDY is to be paid only if the Rupay Card holder has completed two financial transactions at any branch, bank, ATM, etc.

Eligibility Criteria for Pradhan Mantri Jan Dhan Yojana

• Individuals should be between the ages of 18 and 69 years old.
• Only the family’s head of household is covered by life insurance. If he or she is over 60, the life insurance is offered to the second eldest earning member. If there are multiple joint account holders in this scheme, the first one will receive life insurance. If you are enrolled in another government programme, such as the ‘Aam Aadmi Bima Yojana,’ you will not be eligible for the Pradhan Mantri Jan Dhan Yojana’s life insurance.
• This plan also allows minors above the age of ten to open an account. This account, however, will have to be managed by their guardian.
• Minors are also eligible for Rupay cards, which allow them to make cash withdrawals.
• Individuals can also move their regular savings account to a PMJDY account to be eligible for the benefits offered by PMJDY.
• Individuals without proof of Indian nationality are allowed to open PMJDY accounts if the concerned bank deems them “low risk” after conducting a comprehensive background investigation.

Life Cover under Pradhan Mantri Jan Dhan Yojana

The Prime Minister established the Pradhan Mantri Jan Dhan Yojana to bring deprived-class families into banking institutions. The goal of this programme was to provide a bank account to every family that had never had one before. The main goal of launching this scheme was to provide financial services to the poor. This plan includes an Rs. 1 lakh accident insurance policy and a Rupay card. Prime Minister Narendra Modi announced an Rs. 30,000 life cover for account holders under this scheme on August 28, 2014. This insurance policy covers the account holder’s entire life. It provides coverage to the account holder’s family if he or she passes away. The government of India covers the cost of the life insurance premium. Pradhan Mantri Pradhan Mantri Pradhan Mantri Prad The Jan Dhan Yojana provides life insurance to those who otherwise would not be able to afford it. Accidental cover of Rs 2 lakh is available for accounts opened after 28.8.18.