What is Jan Dhan Yojana (Bank Account for Every Indian) Pradhan Mantri Jan Dhan Yojana (PMJDY) is an initiative implemented by Honourable Prime Minister of India Shri Narendra Modi on completing 100 days. The target is to provide bank account to every Indian household. This would be a normal savings bank account. The Yojana would be implemented in phases as follows: Phase-1: 28 August 2014 till 15 August 2015 Phase-2: August 2015 till August 2018 Benefits of Jan Dhan Yojana There are many benefits of Jan Dhan account for the Indians: 1. It is a zero balance savings account. 2. Account holder will receive a kit containing cheque book, financial literacy and pass book. However this would vary from bank to bank and account usage. 3. Every account holder will get RuPay Debit card (which is India’s domestic debit card) included in the welcome kit. You can read benefits of rupay card here. RuPay card can also be used for eCommerce transactions. 4. Person will also get Aadhar number on the spot. 5. Family of account holder will get accident insurance cover of Rs. 1,00,000. 6. Life cover of Rs. 30, 000 was declared as an incentive for those opening the account by 26 January 2015. This life cover would be provided by India’s largest insurance company – Life Insurance Corporation of India. 7. Overdraft (loan) facility of Rs. 5000 would be provided once account holder completes 6 months and has kept account active. 8. Loan amount would be increased to Rs. 15,000 if repayment is done on-time by the person. Ofcourse this would depend on each bank. 9. Overdraft facility would benefit individuals who had been relying on money lenders charging high interest rates. 10. However in order to avoid overdraft frauds, only Aadhar linked accounts would be eligible for overdraft facility. 11. Farmers dependency on money lenders would reduce as they’ve been relying on money lenders especially in rural areas. Once trapped by money lenders, whole family’s future is ruined. 12. Mobile banking would be available and technical platform will be built connecting all the banks and telecom operators so that customers can access mobile banking facility with ease. 13. Account holder will also get interest on deposit and access to pension and insurance products 14. Money transfer can be done across Indian bank Read FAQ’s on PMJDY along with their answers. Documents required for account opening 1. Address proof either current or permanent. 2. If address changes then person needs to submit fresh address proof to the bank. You can read more about the recent know your customer (KYC) norms changed by RBI. 3. For persons with no valid documents, the account can still be opened by providing self attested photographs, signature/thumb print in front of bank official. Such account is called Small Account. Read more about this here. However this small account would be valid only for 1 year post that person will have to provide official valid documents which include: Passport, Driving License, PAN card, Voter ID card, Aadhar card, Ration card. 4. 2 passport size photographs
Posted on: Tue, 02 Dec 2014 06:45:25 +0000
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