KEY Features of Pradhan mantri Jan Dhan Yojana:-

The scheme provides a range of following features formulated to meet the varied requirements of the underserved population:

1.Debit card: The Bank provides the Rupay Debit card to account holders. At this instance he can use for ATM withdrawals and other banking transactions.

2.Zero balance account: Individual can open a saving bank account without maintaining minimum balance.

3.Insurance coverage for accidents: With RuPay debit card, inbuilt accidental insurance cover of 2 lakhs is also given for account opened after Aug-2018.

4.Overdraft facility: Account holders can get overdraft facility of up to 10,000 after 6 months of satisfactory banking operations.Overdraft facility is given only to one member of a family.

5.Life Insurance coverage: This scheme also provides life insurance coverage of Rs. 30,000 to account holders who have opened the accounts between 15/08/2014 – 31/01/2015.Some general Terms and conditions govern this Insurance.

6.Mobile banking: An account holder may operate basic banking functions through mobile phones.This avoid going to bank for every small activity.

7.Direct Benefit Transfer: For ensuring transparency and reducing leakage of funds, Government benefits and subsidies are directly transferred to the account holders.

8.Easy access to microcredit: The scheme provides an easy access to loan products and affordable microcredits.

OBJECTIVES OF Pradhan Mantri Jan Dhan Yojana:-

The following are the objectives of PMJDY:

1. a) Economical financial service: The scheme provides services to open savings accounts, insurance, credit, and pension products. Moreover, the scheme provides this free of cost or at a very minimal rate.
2. b) Financial empowerment: To provide universal access to all banking advantages for every underserved family in rural areas.

c)Decline in unofficial borrowing: To discourage informal sources of credit, like moneylenders.

d)Digital Financial awareness: To increase financial awareness among the population not have a bank account. Finally, it encourages all transactions through the digital payment mode.

1. e) Women’s empowerment: By asking women to open bank accounts and manage their savings, the scheme consequently aids in women’s empowerment.

DOCUMENTS REQUIRED FOR GETTING BENEFIT OF PM JAN DHAN YOJNA

The following  are the documents required to open a bank account under PM Jan Dhan Yojna: –

1. Aadhar card. If an Aadhar number is available, then no other documents are needed. A self-declaration is sufficient for the current address if the address is changed.

2. If an Aadhar card is not available, then one among the following official documents may be produced: Driving license, PAN card, Voter ID Card, Passport, or MANREGA card.

3. In case a person does not possess any documents mentioned above, and the bank categorizes it as low risk. In that case, the person may open an account by submitting any one of the following documents:

-Identity card with applicant’s photograph issued by State/Central Government Departments, Scheduled commercial Banks, statutory/regulatory authorities, and public Financial Institutions.

-Letter issued by a Gazetted Officer, with a duly attested Photograph.

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PM JAN DHAN YOJNA : Most Important Terms and Conditions(MITC):-

1. Individuals should have a BSBD(Basic Saving Bank Deposit) account, which he has operated for at least six months satisfactorily.

2. Regular credits under the DBT/DBTL scheme/other approved sources should be in place.

3. The age of the applicant must be between 18 years to 65 years.

4. The bank provides OD(overdraft)  to earning members of the family, and only one member of the family gets this facility.

5.KCC(Kisan Credit Card)/GCC(General Credit card) borrowers are not eligible for PMJDY Overdraft.

6. Minimum OD amount is Rs 2000/- without any verification based on fulfilling the above criteria.

For amounts above 2000/- eligible amount for OD is as follows:

i)4 times of balance of the previous six months or

ii)50% of the credit sum in previous months or Rs 10000,

whichever is minimum.

Toll-free no. for Pradhan Mantri Jan Dhan Yojana (PMJDY) customer care and other Financial Inclusion schemes: 18001027788

BENEFITS OF PMJDY:-

1. Saving account holding: There is no need to maintain a minimum account balance in the PMJDY account. Interest is provided, and a RuPay Debit card is also provided to the PMJDY account holder.
2. Social interaction: The scheme as a whole has reduced the gap between the urban and rural populations. Thereby, it has developed a sense of equality and involvement in the mainstream.
3. Financial Empowerment: The scheme has strengthened the population socially and economically. PMJDY has correspondingly developed a habit among the population to save, invest, and manage their money. The scheme has done this consequently by providing access to the Banking system.
4. Developing saving habits: The PMJDY inculcates the habit of saving as well as avoiding useless expenditures. Indeed scheme does this by facilitating savings bank account opening and providing access to formal banking facilities.
5. Attack on corruption: Direct Benefit Transfer has finally reduced the leakage and minimized corruption in the delivery of welfare schemes.
6. Women’s Empowerment: Women have also benefited from PMJDY by opening savings bank accounts. This ultimately provides them with financial freedom, promoting gender equality.
7. Growth of the Digital India scheme: By promoting digital transactions and reducing cash dependency, the scheme promoted the Digital India Mission.
8. Credit facilities: Small farmers and also entrepreneurs may access timely funds for their livelihoods by using the overdraft and microcredit facilities.
9. Additional facilities: PMJDY accounts are eligible for Atal Pension Yojna(APY), Pradhan Mantri Suraksha Yojna(PMSY), Direct Benefit Transfer(DBT), and Micro Units Development. Additionally, PMDJY accounts are also eligible for the Refinance Agency Bank(MUDRA)scheme, Pradhan Mantri Jeevan Jyoti Bima yojna(PMJJBY).

CHALLENGES AND WAY FORWARDS:-

CHALLENGES:-

1. Nonactive accounts: After opening savings accounts, account holders don’t use the accounts effectively because of a lack of knowledge of financial management. The number of such inactive accounts is huge and leads to a big hurdle for the scheme.
2. Restricted overdraft usage: Many account holders don’t know that the bank provides overdraft facilities and are unaware of the benefits of overdrafts. People are also unwilling to use overdraft facilities.
3. Infrastructural problems: Because of poor connectivity and insufficient banking infrastructure, people are unable to get the benefit of this scheme.
4. Overload on banks: The huge number of savings accounts makes it difficult for available banks and banking correspondents to process the service requests. Consequently, it leads to a delay in banking services.

WAY FORWARDS:-

1. Financial literacy awareness: The Government should create awareness among beneficiaries about the benefits as well as features of PMJDY.

2. Technology awareness and adoption: Incorporating new technologies like Aadhar-based authentication can facilitate easy account operation and may reduce fraud.

3. Infrastructure improvement: Strengthening the banking infrastructure, like mobile banking vans and ATMs, may facilitate accessibility in rural areas

4. Monetary benefits to Banking officers: To motivate and to improve the efficiency of Banking officers, adequate incentives and training need to be provided.

5. Periodic account review and updation: Regular account follow-ups and monitoring may ensure bank accounts are not dormant and look into user grievances.

CONCLUSION:-

In Conclusion, the Pradhan Mantri Jan Dhan Yojana is a stepping stone on the path to financial inclusion in India. This scheme aims to strengthen the country’s economic ecosystem by improving the financial condition of millions of people. Through this scheme, the mainly unbanked and underserved population has finally benefited. There are various challenges as described above. In spite of that, the scheme has reached a remarkable position because of its continued effort.PMJDY is a scheme that will ultimately bridge the gap between the high-income group and low low-income group. Pradhan Mantri Jan Dhan Yojna(PNJDY) is a Government mission to correspondingly facilitate access to various financial services. These services are basic savings & deposit accounts insurance, credit, remittance, and pension at an affordable rate. A person who does not have an account in any bank may certainly open a Basic Savings Bank Deposit (BSBD) account.

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