Pradhan Mantri Jan Dhan Yojana: Benefits, Eligibility And How To Open Account | Business News

Last Updated:July 06, 2025, 08:00 IST

The Pradhan Mantri Jan Dhan Yojana was launched in 2014 to enhance financial inclusion, ensuring access to banking services for every household.

Launched in 2014 by Prime Minister Narendra Modi, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is an inclusive financial scheme aimed at providing banking services to the people from the low-income and weaker sections of society. The scheme has been developed to offer universal access to banking facilities with at least one basic banking account for every household in India.

The scheme allows all citizens, especially those from the underprivileged and marginalised sections, to open a bank account irrespective of their income levels. All Pradhan Mantri Jan Dhan Yojana beneficiaries can enjoy the benefits of banking services such as interest on savings, deposits, pension, government subsidies and insurance plans, among others.

Features And Benefits

Individuals can open a zero-sum account at any bank branch under Pradhan Mantri Jan Dhan Yojana. There is no requirement to maintain a minimum monthly balance in the PMJDY account. However, if the account holder wishes to make use of the cheque facility of the bank, they will need to have a certain amount in the savings account.

Account holders can also get an overdraft facility of up to Rs 10,000 if they are able to maintain certain levels of savings for around six months. The government also offers the RuPay debit card holders an accident insurance of Rs 1 lakh under the scheme. The insurance amount has been increased to Rs 2 lakh for accounts opened after August 28, 2018.

If you are the beneficiary of some other government-sponsored scheme, the amount is credited to the Jan Dhan account through Direct Benefit Transfer (DBT).

The interest rates for PMJDY accounts typically range between 3% and 4% per annum. The interest is calculated based on the daily average balance and credited to the account quarterly.

Eligibility

Indian citizens, aged 10 or above, are eligible to open an account under this scheme. In the case of minors, their guardians are able to manage the account with the additional benefit of being eligible for a RuPay Card that can be used to make four withdrawals a month.

Those who already have a savings bank account can apply for a PMJDY account. Such individuals can transfer their account balance to the scheme account and enjoy its benefits.

In a rare scenario where individuals are not able to establish their Indian nationality or show documents that prove they have a savings account, the bank may conduct an identity and address verification on them before opening the account. Such a person is only allowed to open a temporary account until they provide the required documents of identity proof within 12 months from the date of opening the account.

The documents required for the process include passport, driving license, a Permanent Account Number (PAN), Voter ID and Aadhaar.

How To Open A PMJDY Account

For the eligible individuals, the offline process involves filing the form through the attachment of necessary documents alongside a self-attested photograph and signature or thumb mark at the nearest bank branch.

The online process to open the PMJDY account is also available. The official website of the Pradhan Mantri Jan Dhan Yojana allows you to access the online application form, available in both English and Hindi.

Business Desk

A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More

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Delhi, India, India

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