Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a comprehensive financial inclusion scheme launched by the Government of India in August 2014. The scheme aims to provide universal access to banking services, financial literacy, and insurance coverage to all sections of society, especially the economically marginalized and unbanked populations. PMJDY has been a transformative initiative, addressing the financial needs of millions and contributing to the overall socio-economic development of the country. (Let’s see Awas Yojana article)

Jan Dhan Yojana as a Central Gov Intiative


Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Indian government in August 2014. The main objective of the scheme is to ensure that every household in India has at least one bank account. It aims to provide financial services such as access to banking and credit facilities, insurance, and pension to the unbanked population in the country.

Under the scheme, a zero balance savings account can be opened with any bank, and customers can also avail a RuPay debit card, which can be used to withdraw money from ATMs and make purchases. The scheme also provides life insurance cover of Rs. 30,000 and accidental insurance cover of Rs. 2 lakhs to account holders.

PMJDY has been successful in bringing millions of people into the banking system, and has helped to increase financial inclusion in India. As of March 2021, more than 43 crore bank accounts had been opened under the scheme, with a total balance of over Rs. 1.3 lakh crore.

Aim of Pradhan Mantri Jan Dhan Yojana:

The primary aim of the Pradhan Mantri Jan Dhan Yojana is to ensure that every household in the country has access to a basic banking account, thus promoting financial inclusion and ensuring that financial services are not restricted to a privileged few. The scheme also strives to provide access to credit, insurance, and pension schemes to the unbanked population.

Need for Pradhan Mantri Jan Dhan Yojana:

Financial inclusion is a critical factor in reducing poverty and fostering economic growth. Prior to the launch of PMJDY, a significant portion of India’s population did not have access to formal banking services. This often led to financial untouchability, lack of access to credit, and vulnerability to exploitative financial practices. PMJDY was introduced to bridge this gap and empower individuals with the benefits of banking services.


The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Indian government in 2014. Its primary objective is to ensure that every household in India has access to a bank account, financial literacy, and access to credit, insurance, and pension schemes. Some of the key features of the PMJDY are:

  1. Zero-balance accounts: PMJDY accounts can be opened with zero balance, and there is no minimum balance requirement.
  2. RuPay debit card: All PMJDY account holders are provided with a RuPay debit card, which can be used at ATMs, POS terminals, and for online transactions.
  3. Accidental insurance cover: PMJDY account holders are eligible for an accidental insurance cover of Rs. 2 lakh.
  4. Overdraft facility: PMJDY account holders can avail of an overdraft facility of up to Rs. 10,000 after satisfactory operation of the account for six months.
  5. Mobile banking: PMJDY accounts are enabled for mobile banking, which allows users to check their account balance, transfer funds, and pay bills through their mobile phones.
  6. Direct Benefit Transfer (DBT): PMJDY accounts are used for the transfer of government subsidies and benefits directly to the beneficiary’s account, reducing leakages and ensuring that the benefits reach the intended recipients.
  7. Financial literacy: PMJDY also aims to promote financial literacy among the account holders, with the help of banking correspondents, who are appointed by banks to provide basic banking services to rural areas.

Overall, the PMJDY is an important initiative to promote financial inclusion and bring more people into the formal banking system, which can have a significant impact on reducing poverty and increasing economic growth.

Why this

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Indian government to provide access to financial services to all households in the country. It is aimed at promoting financial literacy, reducing economic inequality, and facilitating financial inclusion.

It is possible that students are undertaking a course related to PMJDY as part of their academic curriculum or personal interest in the subject. Such a course may provide an in-depth understanding of the scheme, its objectives, and the measures taken by the government to implement it effectively.

By learning about PMJDY, students can gain knowledge about the financial inclusion landscape in India, and how the government is trying to bridge the gap between the unbanked and the banked population. This knowledge can be useful for students pursuing careers in banking, finance, public policy, or any other field related to the financial sector.

Application Procedure

The application procedure for the Pradhan Mantri Jan Dhan Yojana (PMJDY) is designed to be simple and accessible, ensuring that even individuals from economically disadvantaged backgrounds can easily enroll and avail the benefits of the scheme. Here’s a step-by-step guide to the application process:

Step 1: Visit a Bank or Financial Institution: Locate a bank or financial institution near you that is participating in the PMJDY. The scheme is implemented through various nationalized banks, private banks, and regional rural banks across India.

Step 2: Obtain the PMJDY Account Opening Form: Collect the Pradhan Mantri Jan Dhan Yojana account opening form from the bank. These forms are available in multiple languages and are designed to be simple and easy to understand.

Step 3: Fill in the Required Details: Carefully fill in all the necessary details in the account opening form. You will need to provide personal information such as your name, date of birth, address, occupation, annual income, etc.

Step 4: Provide Identification Documents: Submit the required identification documents as specified by the bank. Commonly accepted documents include Aadhaar card, voter ID card, passport, driving license, and others. These documents are used to verify your identity and address.

Step 5: Choose Account Type: Select the type of account you wish to open. PMJDY offers two types of accounts: Savings Account and Basic RuPay Debit Card-Enabled Account. You can choose the account that suits your needs.

Step 6: KYC Process: The bank will conduct the KYC (Know Your Customer) process based on the documents you have submitted. This is a standard procedure to verify your identity and ensure compliance with regulations.

Step 7: Biometric Authentication: For Aadhaar-based accounts, banks may require you to undergo biometric authentication, which involves fingerprint and iris scanning to link your Aadhaar details with the account.

Step 8: Photograph and Signature: Provide your photograph and signature as required. These will be linked to your account for identification purposes.

Step 9: Receive Account Details: Once your application is processed and approved, you will receive your account details, including the account number and other relevant information.

Step 10: Receive Passbook and Debit Card: The bank will provide you with a passbook and a Basic RuPay Debit Card. The passbook will record all your transactions, and the debit card will enable you to access ATMs and make digital payments.

Step 11: Enrollment for Overdraft Facility (Optional): If eligible, you can also enroll for the overdraft facility after some time. This facility allows you to access a small credit limit in case of emergencies.

It’s important to note that the application process may slightly vary from one bank to another. Some banks may offer online account opening options as well. If you have any questions or need assistance during the application process, the bank’s staff will be happy to help you.

The Pradhan Mantri Jan Dhan Yojana aims to provide banking services and financial inclusion to all, and the application process is designed to make this goal achievable for every eligible individual in India.

Application of Pradhan Mantri Jan Dhan Yojana:

The application of PMJDY has been widespread, transforming the way financial services are accessed and utilized:

  • Direct Benefit Transfer (DBT): PMJDY accounts have facilitated the direct transfer of subsidies, pensions, and other government benefits, reducing leakages and ensuring efficient delivery.
  • Credit Access: The overdraft facility and credit linkages provided under PMJDY have enabled individuals to access credit for various purposes, fostering entrepreneurship and economic activities.
  • Financial Empowerment: The scheme has empowered women by encouraging them to open their own bank accounts, enabling them to take control of their finances.
  • Insurance Coverage: The insurance coverage provided through PMJDY has offered a safety net for families in case of unforeseen events.

Benefits of Pradhan Mantri Jan Dhan Yojana:

The benefits of PMJDY are profound and far-reaching:

  1. Financial Inclusion: Millions of individuals who were previously excluded from formal banking services now have access to a range of financial products.
  2. Reduction in Leakages: DBT through PMJDY accounts has reduced leakages in government subsidy and welfare programs.
  3. Economic Empowerment: Access to credit and insurance has empowered individuals to undertake income-generating activities and protect their families financially.
  4. Promotion of Savings: The accounts encourage individuals to save and build a financial cushion for the future.


The Pradhan Mantri Jan Dhan Yojana stands as a remarkable initiative that has brought millions into the fold of financial security and inclusion. By providing access to banking services, credit, insurance, and financial literacy, the scheme has not only improved the lives of individuals but has also contributed to the economic growth and development of the nation. PMJDY serves as a testament to the government’s commitment to ensuring that the benefits of economic progress reach every corner of society. As the program continues to evolve, it reinforces the idea that financial inclusion is not just a goal, but a powerful tool for transforming lives and building a stronger, more inclusive nation.

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