PM Narendra Modi has launched mega scheme 'Jan Dhan Yojana', wherein account holders get zero-balance bank account with Rs1 lakh accidental & Rs 30,000 life insurance cover, Rs 5,000 BOD and RuPay debit card. So, apply for yours one fast!
It sounds really odd that many people in today’s high-tech era don’t have any bank account and still keep all money under the mattress. One side, India has grown to become Asia's third largest economy; on the other side, nearly 40% of Indians have little or no access to financial services. They still rely on moneylenders and other unofficial financing routes. We all know that Narendra Modi won India's biggest electoral mandate in 30 years with a promise to restart India's flagging economy. So, he has launched Jan Dhan Yojana plan to provide a bank account for every household in India. According to him, there is urgency to this exercise, as all other development activities are hindered by this single disability. Most importantly, the scheme is aimed to help poor contribute to economic development, providing easy access to financial services for saving better and funding in a more structured manner. Opening account under the scheme is very simple and requires only one piece of identification. Even for your help, detailed information about the scheme with complete how to apply guidance is given below.
The Prime Minister remarked that currently there has been a telecommunications revolution in India, but regrettably there has been no similar banking revolution. Millions of families in India have mobile phones but no bank accounts. He decided that we have to change this scenario, and want to integrate the poorest of the poor with bank accounts. Thereby, he is pushing to convert India into a modern economy, where money goes from account to account instead of pocket to pocket.
Finally on August 27, Prime Minister Narendra Modi had launched the PMJY scheme with his Cabinet colleagues. The scheme is designed to promote comprehensive financial inclusion as well as to provide financial services to each and every household in the country. Mainly, the scheme aimed at wiping out financial untouchability, by providing bank accounts even to the poor. While launching the ambitious scheme, Modi promised that it will cover 7.5 crore people by January 26, 2015. On the launch, a record 1.5 crore bank accounts were opened across the country.
To have a bank account is a personal choice and not a requirement, but if individual opens a bank account, he or she joins the economic mainstream of the country. It is reported that Indians have one of the world's highest household savings rates; however as per the report of central bank, only 35 % of this savings go into the banking system. Now through Jan Dhan Yojana, even the poor can get access to financial services to save better as well as to funding in a more structured manner. In this manner, more and more people – especially the poor – can contribute to economic development, leading financial inclusion up and up.
Let’s first know about the five important features of the PM Jan Dhan Yojana:
In the scheme, account holders will get zero-balance bank account with accidental insurance cover of Rs 1 lakh and RuPay debit card accepted at all ATMs (for cash withdrawal) and at most of the PoS machines (for making cashless payment for purchases) in the country.
Those who open accounts by January 26, 2015, they will also get life insurance cover of Rs 30,000 with Rs1 lakh accident cover.
After six months of opening of the bank account, holders are allowed to gain Rs 5,000 loan benefit from the bank.
With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance using a normal phone that was previously limited only to smart phones so far.
Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) with great support of all banks and mobile companies.
Thus, 'Jan Dhan Yojana' is not a mere bank account, but also comes with benefits of using credit and free insurance. That makes really a huge difference for a poor person. Besides a savings account, the scheme will also help the poor to gain "economic independence" with free insurance and credit card usage. Moreover, account holders will get overdraft facility of Rs. 5,000 after six months of operation of the no-frill accounts. It means they would no longer have to rely on moneylenders and informal agencies who charge excessive interest for emergency loans for sickness or routine purchases like buying seeds.
At the time of announcing 'Jan Dhan Yojana' Mr. Modi ironically point out the typical money borrowing and asked that "Why are our farmers committing suicide? It's because they have to take money at huge interest rates from the moneylenders".
In the developed nations, there are bank branches everywhere, while banking services in India is limited to half the 1.2 billion population, putting poor people at the mercy of moneylenders, which operate outside formal regulation and charge huge interest rates. As per the World Bank data, 73 % of farmers have no official source of credit. Now under the scheme 'Jan Dhan Yojana', Mr Modi is taking a personal risk in the mission. His push for financial inclusion would also help shrink the influence of moneylenders and other informal financing channels.
'Jan Dhan Yojana' also helps the government pay welfare benefits directly into bank accounts, cutting roots of corruption. In the current set-up, majority of the subsidized goods that government hands out lead to waste and corruption that raise India's $43 billion subsidy bill, equal to more than 2% of its GDP. As per the World Bank data, just 4% of Indians get government payments through bank accounts. By paying benefits directly into bank accounts, 'Jan Dhan Yojana' could help put off corrupt officials from diverting relieve, reducing leakages, better tax collection and better savings…that ultimately cut the cost to the government and boosts the economic growth.
Generally to open bank account, it requires a number of papers like birth certificates and proof of address that many poor Indians do not possess. But under this scheme, the Reserve Bank of India put all such hurdles aside and introduced easy and simple requirements that only require one piece of identification (Aadhaar card)…so anyone can apply for this scheme with no hassle!
How to apply?
If you already have a Bank Account:
Mainly, the PMJDY scheme is for those who do not have any savings bank account, however people who already have an account can avail the benefits of the scheme. You can open a bank account only if you have an Aadhaar card which is not linked to any other bank account. If so, then on submitting your Aadhaar identification, your unique ID will get logged in to the system and you will not be allowed to open multiple accounts under Pradhan Mantri Jan Dhan Yojana. It is suggested that you should open your account at a bank branch, which is different from where your current active savings account is located.
PMJDY Bank Account Opening Procedure and downloading Form:
It is a very simple, three steps process.
At first, visit your nearest bank branch and ask whether the bank is part of the PM Jan Dhan Yojana. (All nationalized banks have been asked to organize camps on all Saturdays from 8.00 AM to 8.00 PM. Banks can hold extra camps on other days too.)
If yes, then ask for the Account Opening Form and fill in your details and submit it along with a color passport size photograph and your signature. To print form, click here.
Click here to get list of banks and ID Proof required.
Pradhan Mantri Jan Dhan Yojana Helpline:
Contact the Department of Financial Services by calling on 011- 23745128 / 23748714 to know more about the scheme. These numbers connect you with Rajat Sachar, who is the economic advisor for the Ministry of Finance, and his office will provide all the details required about PMJDY. No toll free number is available yet but it could be launched soon
Grants and Withdrawal Limits under PMJDY
No grants are given under PMJDY. Also, here is no withdrawal limits on your savings account. Note that Accidental Insurance cover of Rs.1.00 lac and Life Insurance Cover of Rs.30000/- will be available to any/ all account-holders but overdraft facility upto Rs.5000/- will be available to only one person in the family (preferably lady of the house).
Conditions to avail Insurance under PM Jan Dhan Yojana
Make sure that your Rupay Debit Card is active, as insurance is given along with your card. Note that your Rupay Card will be considered active only if you have swiped it within the fixed time limit of 45 days before making the claim. So to keep your account and card active, you will have to use it at-least once a month.
Benefits of PM Jan Dhan Yojana:
- Interest on deposit.
- Accidental insurance cover of Rs.1.00 lac
- No minimum balance required. However, for withdrawal of money from any ATM with Rupay Card, some balance is advised to be kept in account.
- Life insurance cover of Rs.30,000/-
- Easy Transfer of money across India
- Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
- Access to Pension, insurance products.