The Jan Dhan Yojna aims to help such persons and make sure they can get affordable financial products like bank accounts, remittances, credit services, pensions and insurance. Announced by Prime Minister Narendra Modi on 15th August 2014, the scheme saw a record number of newly opened bank accounts on the first day of its launch.
Benefits of the Pradhan Mantri Jan Dhan Yojna
The right to a bank account
Under the PMJDY scheme, any person can sign up for a bank account with the most minimum number of documents. Special provisions are also put in place for people of rural areas who are unable to produce valid documents.
No minimum balance requiredAccounts under the Jan Dhan Yojna can be opened with zero minimum balance. However, depending on the bank, a minimum balance may be required if the customer wishes to have additional facilities like cheque book, etc.
RuPay Debit CardA Repay Debit Card will be provided to the person that can be used to withdraw money across all ATMs in India.
Insurance CoverAll members of the PMJDY scheme will be eligible for a life insurance cover of Rs 30,000/-, provided that they comply with certain requirements like opening the bank account before 26th January 2015.
Overdraft FacilityAfter 6 months of opening the account under the Pradhan Mantri Jan Dhan scheme, the account holder can avail overdraft facility of Rs 5000/-
Loan BenefitsPersons availing the PMJDY scheme are eligible for loans up to Rs.5000/- after 6 months of opening their bank account. Aimed at the rural population, such a loan benefit can help persons below the poverty line in cash crunch situations.
Simplified Mobile BankingThe PMJDY scheme allows users to check account details and transfer funds through a simplified mobile banking system, using simple mobile phones that people below the poverty line can afford, instead of smart phones.
Thus, the Pradhan Mantri Jan Dhan Yojna helps to empower the masses with simple, no-hassles bank accounts and make them financially confident.
Learn more about Mutual Funds for a good personal financial management.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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