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Are You Eligible For Opening A Jan Dhan Yojana Account? Find Out Here

Personal Finance

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a popular scheme that has paved the road for future economic initiatives. It has helped millions of people from rural areas and marginal communities gain access to banking and opened the door to access other government initiatives easily.

But what is a Jan Dhan Yojana account, and is it really beneficial for you? What are the eligibility requirements for the Jan Dhan Yojana Scheme? How can you open a Jan Dhan account?

To get the answers to these questions and more, read the below article to get a brief understanding of the Jan Dhan Yojana.

What Is Jan Dhan Yojana?

The Ministry of Finance launched the Pradhan Mantri Jan Dhan Yojana in 2014 to provide affordable access to financial products and services. It is meant for those who haven’t opened any bank accounts. Using online technology to scale back expenses and reach a wider audience, the Jan Dhan Yojana has brought over 43 crore beneficiaries under formal banking since its inception.

The Jan Dhan Yojana aims to provide the following benefits:

  1. Universal access to bank-related services
  2. Basic savings accounts with a 10,000 rupee overdraft available to all eligible adults
  3. Financial Education Program- encouraging savings, utilising ATMs, obtaining insurance and pensions, and using simple mobile phones for banking.
  4. Creation of a Credit Guarantee Fund to provide banks with a guarantee against defaults

Benefits Of The Jan Dhan Yojana

1. Mobile Banking

Due to online banking, you don’t have to visit your bank’s branch to manage your funds repeatedly. The Jan Dhan Yojana allows you to conduct several transactions using your smartphone or a regular phone. 

2. Banking The Unbanked

The Pradhan Mantri Jan Dhan Yojana provides a basic savings deposit (BSBD) account with minimal paperwork, simplified KYC, and e-KYC. In addition, the account has zero charges and no requirements for a minimum balance amount, allowing you to realise interest over time.

3. Insurance Benefits

The Jan Dhan Yojana also ensures an accident insurance cover of up to Rs. 1 lakh (enhanced to Rs. 2 lakhs for new accounts opened after August 28, 2018), accessible with the Rupay card issued to all PMJDY account holders.

4. Rupay Debit Card

You will also get a Rupay Debit card, allowing you to withdraw money using ATMs and providing interoperability.

Are You Eligible For The Jan Dhan Yojana?

Below are the eligibility criteria to open a savings account under Jan Dhan Yojana:

  1. You need to be an Indian citizen and provide documentation to showcase this.
  2. The account will be provided to low-risk individuals, i.e. those who cannot provide sufficient proof but are deemed low-risk by the respective bank after thorough research.
  3. Any individual older than 10 years can avail of the benefits of the Jan Dhan Yojna Scheme, provided that account holders who are minors need to have a registered guardian to open a Jan Dhan Yojana account.
  4. You can open a Jan Dhan bank account even if you already have a savings account. In such a case, you can transfer it to your Jan Dhan Yojana account to avail the benefits.

Who Is Not Eligible For The Jan Dhan Yojana Scheme?

Here is who might be ineligible for the Jan Dhan Yojana Scheme:

  1. Government employees, state or central, are not eligible to open a Jan Dhan Yojana account.
  2. Individuals and those families who are current income tax payees cannot avail of the Jan Dhan Yojna.
  3. Those registered under the Aam Aadmi Bima Yojna cannot open a Jan Dhan Yojana account unless they give up the Aam Aadmi Bima scheme.

How Do I Apply For The PM Jan Dhan Yojana?

To check your eligibility, you need to provide certain documents while applying for the Pradhan Mantri Jan Dhan Yojana Scheme:

1. Address Proof 

Under this section, you’ll need to provide certain documents, like an Aadhaar Card or passport. If you do not have an Aadhaar Card, you will be ineligible for this scheme unless you obtain one. In case of a lack of residence proof, if your respective bank deems you as a low-risk applicant, you apply for the scheme and submit your Aadhaar Card as residence proof within 12 months.

2. Identity Proof 

To open your Jan Dhan Yojana account, you’ll need two passport-size photos, voter ID proof and a driver’s license. When filling up the form, make sure to correctly fill in relevant details like the nominee’s name, age, date of birth, and information about the person authorised to receive funds in the event of the nominee’s death.

The Pradhan Mantri Jan Dhan Yojana form, also known as the Financial Inclusion Account Opening form, must be filled out with the correct information. It consists of the following sections:

1. Bank Details
In this section, you’ll need to fill in your bank information, through which you are applying for the Jan Dhan Yojana account.

2. Applicant Details
You’ll be required to enter all your relevant personal details, including name, marital status, residence, Aadhaar card number, etc.

3. Nominee Details
In this section, you will be required to fill in the details of your nominee.

Final Words

The Pradhan Mantri Jan Dhan Yojana Scheme is a success because it has contributed significantly to the increase in the percentage of Indians with bank accounts from 53% in 2014 to 80% in 2017.

It has provided the foundation for nationwide initiatives like direct benefit transfers, COVID-19 financial assistance, and life and health insurance coverage by providing bank accounts to those individuals who couldn’t make one and could not benefit from financial services or products.

To know more about this scheme, you can consult help from financial experts like Piramal Finance. You can also read similar blogs on the website and increase your financial awareness.