Financial Inclusion

Features of Jan Dhan Yojana

Given below are a list of important features of the Pradhan Mantri Jan dhan yojana , a financial inclusion scheme which was launched earlier this week. The government scheme was launched by PM Modi at a function in New Delhi.

pmjdy features

Raghuram Rajan, Nripendra Misra, Arun Jaitley, Narendra Modi and Nirmala Sitharam seen at launch of PMJDY.Img-credit:pmindia.gov.in

Important Features of Jan Dhan Yojana

  • Zero Balance Account 

The accounts under PMJDY will be zero balance accounts which means account holders do not need to maintain any bank balance. Most regular bank accounts require that a minimum balance which might vary from Rs 500 to Rs 5000 will have to be maintained in the bank account failing which a penalty will have to be the customer. In April this year , RBI announced that banks can no longer charge a penalty for non-maintenance of average quarterly balance, this was after it received complaints from bank account holders that their bank balances had disappeared over several months. Keeping this in mind , banks have now introduced zero balance accounts under Pradhan Mantri Jan Dhan Yojana.

  • Insurance Cover of Rs 1 Lakh along with Rupay Cards

All account holders will receive a Rupay Debit Card so that they can withdraw money from any ATM and also use it to make payments at merchant establishments. Each Rupay Card will also insure the Card Holder with accident insurance of upto Rs 1 Lakh from HDFC Ergo and Medical Insurance of up to Rs 30,000 for sick account holders. This money could be used for treatment and paying medical bills when the need arises.

  • Pass Book and Cheque Books

Some Banks are issuing additional pass books and cheque books to some users if they make an additional payment of Rs 100 to Rs 500. This is an additional feature and can be availed by account holders only if they feel the need for it.

  • Direct Benefit Transfers

Another valuable feature of Pradhan Mantri Jan Dhan Yojana is that bank accounts which are linked to Aadhaar ID’s can avail government subsidies by electronic transfer directly into their accounts . For Example : The government might transfer food subsidies it provides to ration card holders directly into their bank account.

  • Overdraft / Loan 

Overdraft of Rs 5000 will be provided to account holders who transact regularly using their rupay card and maintain a good balance in their bank accounts.

Confusion regarding Pradhan Mantri Jan Dhan Yojana

Some confusion has arisen with regard to PMJDY and sever of it’s features. A meeting of finance ministry officials, bank heads and ministers has been called for on Monday 31st August to discuss the various issues raised by citizens and stakeholders. More details about the scheme are expected to be announced next week. The confusion exists with regard to the following important features and conditions : –

  1. Who will bear the risk and cost of the Overdraft Facility provided ?
  2. What will the exact accident cover and what will be the process to claim it.
  3. Will existing savings account holders be able to get benefits of RuPay Card.
  4. Can existing account holders open new accounts under PMJDY ?
  5. What will be cost of the entire scheme and how will it be shared between the government and banks?
  6. What role will banking Correspondents play in PM Jan Dhan Yojana ?

To know about these announcements and more visit our website next week.

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