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What is the Pradhan Manthri Jan Dhan
Yojana..?
There is a famous saying by George Bernard Shaw “Lack of money is the root of all evil”.
For the growth and progress of the nation each of its
citizens needs to have access to banking,
insurance and other financial services. This is known as financial inclusion.
So what is the Pradhan
Manthri Jan Dhan Yojana?
The benefits of financial services need to seep down to the
poor and people in rural areas and an ambitious program called the Pradhan
Manthri Jan Dhan Yojana was launched by the prime minister of India on August 28th 2014.
The aim of this scheme was to provide banking and insurance
services to the unbanked and the uninsured in the country.
Hiding money under the mattress and getting no interest on
it? You work in a city and send money to your family in your village through
friends at the cost of pilferage?
Worry not the Pradhan Manthri Jan Dhan Yojana is here.
Who is eligible to open
a savings bank account under the Pradhan Manthri Jan
Dhan Yojana?
o You have to be an Indian citizen and
above 10 years of age to be eligible to open a savings bank account free of
cost under the Pradhan Manthri Jan Dhan Yojana scheme. This scheme is open to
both people in rural and urban areas.
o If you are a minor (above 10 years of
age) then you need a guardian to operate this account.
o Your account is a zero balance
savings account (Your account is active even if there is no money in the
account) and yes…you get interest on the money you have in this account .You
will be given a Rupay card (An Indian ATM card or an ATM cum debit card) to
withdraw money from this account.
o The zero balance savings account is a
basic banking account and you will get a cheque book and other facilities only
if you maintain a certain minimum balance as per the banks requirements.
o You can make any number of deposits
in your zero balance savings account under the Pradhan Manthri Jan Dhan Yojana
scheme. You can withdraw money only 4 times a month (inclusive of ATM
withdrawals) under the Pradhan Manthri Jan Dhan Yojana scheme.
o Your zero balance savings account
will be linked to your aadhar card number.
o If you do not have an aadhar card then
you need an identity and address proof such as a driving license, passport, PAN
card, voter’s card, NREGA job card attested by a State Government Official as
part of your Know Your Customer (KYC) norms.
o You can open a savings bank account under
the Pradhan Manthri Jan Dhan Yojana without an identity or an address proof by
submitting a self attested photograph with a signature or a thumb impression.
This type of account is called a small
account.
o A small account is generally opened
by illiterate/tribal’s who have no identity or address proof mainly for direct
benefit transfer (say for LPG).This account is valid only for 12 months.
o You will not be provided cheque book
facilities for a small account. The balance in your small account cannot exceed
INR 1 Lakh and you cannot withdraw more than INR 10,000 a month.
o If you open a small bank account you
will have to submit an address proof within 6 months of opening the account and
only then can you avail all facilities under Pradhan Manthri Jan Dhan Yojana.
What insurance is provided under the scheme?
o
If
you avail a zero balance savings bank account under the Pradhan Manthri Jan
Dhan Yojana you will get free accidental insurance worth INR 1 Lakh for
yourself and your entire family if you are in the age group of 18-70 years. You
need to have a Rupay card and use it at least once within 45 days of receiving
the card from the bank. You need to intimate the bank within 30 days of meeting
with an accident to make your claim.
o
You
will also get free life insurance worth INR 30,000 with this account. There is
a catch here. Only a single member of your family is eligible to get life
insurance under the Pradhan Manthri Jan Dhan Yojana. This would be the head of
the family or the breadwinner of the family. This member of the family has to
be between 18-59 years of age. If this member dies then the nominee gets INR
30,000. (Only 1 claim per household).
o
The
member of your family who is covered by life insurance under the Pradhan
Manthri Jan Dhan Yojana has to exit his life cover when he crosses 60 years of
age. Life insurance under the Pradhan Manthri Jan Dhan Yojana is available only
till the FY 2019-20 after which its need will be reviewed.
o
You
can avail life insurance under this scheme only if you have opened a bank
account for the first time between August 15th 2014 to January 26th
2015.
o
If
you are a Central or State Government employee or Your income is taxable under
the income tax act 1961 or TDS is deducted from your income or that of your
family members or you have subscribed to the Aam Adami Bima Yojana then you
will not get life insurance under this scheme.
You can get an overdraft facility under the Pradhan Manthri Jan Dhan Yojana scheme:
o
You
can get an overdraft facility up to INR 5000 only after 6 months of opening an
account under the Pradhan Manthri Jan Dhan Yojana scheme.
o
This
might look like a small insignificant amount , but for people who live in rural
areas this can be a major benefit. They could use this money to set up their
farms or other agricultural activities and make a decent life for themselves.
o
Overdraft
facility is available only to one account holder in each family (household)
preferably a lady member of your family.
The mobile revolution:
o
In
India more number of people are subscribed to mobile networks than have bank
accounts. This means the Pradhan
Manthri Jan Dhan Yojana scheme can benefit from mobile banking facilities. You
will be able to check your balance as well as transfer funds (money) using your
normal mobile phone under the Pradhan Manthri Jan Dhan Yojana scheme.
o
You
can also get SMS updates/alerts on your account balance, debit/credit on your
mobile phone.
Government benefits
routed through Pradhan Manthri Jan Dhan Yojana scheme:
Where can you open an
account under the Pradhan Manthri Jan Dhan Yojana scheme?
You can open an account under the Pradhan Manthri Jan Dhan
Yojana scheme in a number of Public Sector and Private Sector banks.
Some of the banks are listed below:
Public Sector Banks:
o Allahabad bank
o Andhra bank
o Bank of Baroda
o Bank of Maharashtra
o Bhartiya Mahila Bank
o Canara Bank
o Central Bank of India
o Corporation Bank
o Dena Bank
o IDBI Bank
o Indian Bank
o Oriental Bank of Commerce
o Punjab National Bank
o Punjab and Sind Bank
o Syndicate Bank
o Vijaya Bank
o Union Bank of India
o SBI and its affiliates
Private Sector Banks:
o Axis Bank
o Federal Bank
o Dhanalaxmi Bank
o HDFC Bank
o ICICI Bank
o IndusInd Bank
o ING Vysya Bank
o Karnataka Bank
o Yes Bank
o Kotak Mahindra Bank
You can download the account opening form of the Pradhan Manthri Jan Dhan Yojana scheme at
the following link:
What happens if you already have a bank account?
o If you already have a bank account
with a bank then you do not need to open a separate account under the Pradhan
Manthri Jan Dhan Yojana scheme.
o You can get a Rupay card issued to
your existing account and get the benefits of accidental insurance.
o You can even get the overdraft
facility if you operate the account as per the banks conditions.
Remember: This is just the start of financial
inclusion in India. Soon the focus would shift to pension and equity
investments. An ambitious plan to open demat accounts for all Indian citizens on
similar lines to bank accounts are in the pipeline.
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