Pradhan Mantri Jan Dhan Yojana: Aim, Benefits, Features & Eligibility

13 min read • Updated 31 October 2023
Written by Prateek Agrawal
What is Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion mission launched by Prime Minister Narendra Modi. It aims to provide countless unbanked Indian citizens access to mainstream financial services.

Read on to learn more about Pradhan Mantri Jan Dhan Yojana’s online application procedure, the eligibility criteria and more!

What is PMJDY?

The objective of Pradhan Mantri Jan Dhan Yojana is to remove financial untouchability and ensure financial inclusion. It allows people from underprivileged communities to open a savings bank deposit if they don’t have one. From banking/savings & deposit accounts to credit, remittance, pension and insurance – Jan Dhan subscribers can unlock a bunch of benefits with their accounts.

The scheme has not only set itself a noble goal but also consistently delivered on its promises. It was launched on 28 August 2014. As of October 2022, over 47 crore citizens were enrolled in the scheme. So, what attracts people to PMJDY in such large numbers?

Let us now dive deep and understand. 

PM’s Jan Dhan Yojana Scheme – Basic Information

Here’s a snapshot of the features of the PM’s Jan Dhan Yojana Scheme: 

Opening Balance Account holders are not required to maintain a minimum balance. In other words, a PMJDY account is a zero-balance account. However, to withdraw money using a RuPay debit card, it would be advisable to maintain some balance.
Interest IncomeSubscribers can earn interest on their bank deposits.
Cheque BookThe chequebooks are issued to all PMJDY account holders. However, in this case, maintaining a minimum balance is necessary.
Debit cardAll PMJDY account holders get a Rupay Debit Card.
Accidental Insurance CoverThe PMJDY provides accident insurance coverage of Rs. 1 lakh to subscribers who joined before August 28, 2018, and Rs. 2 lakhs to those who joined after (Rupay debit card must be used at least once in 45 days).
Life Insurance CoverAccount holders are offered life insurance coverage with Rs.30,000.
Overdraft FacilityAfter six months of opening the account, an overdraft facility of up to Rs. 10,000 will be allowed (available in only one account in one household).
Direct Benefit TransferGovernment scheme beneficiaries will enjoy Direct Benefit Transfers in PMJD accounts.

How Does Pradhan Mantri Jan Dhan Yojana Work?

  • Opening Accounts: The PMJDY helps people open a basic savings bank account, especially those who don’t have one yet.
  • RuPay Card: Each account holder is provided with a RuPay debit card, which also offers an accident insurance cover of up to Rs. 2 lakh for new accounts opened after 28.8.2018.
  • Getting Government Help: If the government gives any money or help, it goes straight into these accounts.
  • Small Loan Facility: Some people can borrow a small amount of money from their account if needed.
  • More Financial Help: People can get insurance, pensions, and loans with this account.
  • Learning About Money: PMJDY teaches people about banks, money, and other important things.
  • Easy Transactions: People can use mobile phones to do banking. This helps those in areas without good internet.
  • No Minimum Balance Requirement: You don’t need to keep a certain amount of money in the account. This provides more user-friendliness to the masses.

Aims & Objectives of Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a national initiative aimed at achieving total financial inclusion in India. Its primary objective is to provide all households, especially the weaker sections and low-income groups, with access to a range of financial services at an affordable cost. This includes:

  1. Universal Banking Access: Every household should have at least one basic banking account.
  2. Financial Literacy: Promote awareness and understanding of financial products, services, and their benefits.
  3. Credit Access: Provide need-based credit facilities.
  4. Insurance & Pension: Introduce insurance and pension facilities to these account holders.
  5. RuPay Debit Card: Account holders receive a RuPay debit card that comes with an accident insurance cover of up to Rs. 1 lakh (enhanced to Rs. 2 lakh for accounts opened after 28.8.2018).
  6. Direct Benefits Transfer: The scheme promotes transferring government benefits directly to beneficiaries’ accounts, eliminating intermediaries and ensuring transparency.
  7. Overdraft Facility: Eligible account holders can avail of an overdraft facility up to Rs. 10,000.
  8. Connectivity and Technology: Addressing technological challenges, such as poor connectivity, and leveraging mobile transactions to ensure wider reach.
  9. Inclusion of Youth: Engaging the youth to participate actively in this mission.
  10. Additional Financial Services: Account holders under PMJDY can access services like the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and MUDRA scheme.

Who is Not Eligible for Pradhan Mantri Jan Dhan Yojana?

The individuals to whom this scheme does not apply include those who have a bank account already, individuals under the age of 10, and Non-citizens of India.

How to Open a Jan Dhan Account?

To open a PM Jan Dhan Yojana Account, you need to follow the mentioned steps:

  1. Download the PMJDY form from Pradhan Mantri Jan Dhan Yojana’s website. Alternatively, you may collect it from the nearby bank branch.
  1. Submit the form and supporting documents to open the Jan Dhan Yojana account. You have to visit the bank branch and submit the required documents. Complete the KYC form and submit it for verification.
  1. After the verification, your PMJDY account will be activated.

*Note: Appointing a nominee is crucial. It will ensure that the money gets transferred to your contender in case of the account holder’s untimely demise. 

Also Read: Best High Risk Mutual Funds to Invest in 2023

Eligibility Criteria for a Jan Dhan Yojana Account

Since this scheme aims to bring millions of unbanked citizens into the mainstream financial system, the eligibility criteria are highly inclusive. You need to fulfil the following conditions to open a PMJDY Account:

  • Applicants must be citizens of India.
  • They must be at least 10 years old.
  • They must not have another bank account registered in their name.

Documents Required to Open a Jan Dhan Yojana Account

To open a Pradhan Mantri Jan Dhan Yojana Account, you need the following documents:

  1. If the applicant has an Aadhar card or number, they won’t require any other document. However, if the official address of the applicant has changed, self-certification of the present address is mandatory.
  2. If an applicant does not have an Aadhar card, they can apply using any of the below documents:
  • PAN card
  • Voter ID card
  • Passport
  • Driving licence

If you do not have the above-listed documents and the banks categorise them as low-risk, you can apply for a PMJDY account using any of the following documents:

  1. An ID card with the applicant’s photo issued by Government departments (Central or state), regulatory/statutory bodies, public financial institutions, commercial banks and public sector undertakings.
  2. A letter from a gazetted officer that contains a duly-attested photo of the applicant

Benefits of the Jan Dhan account 

The Pradhan Mantri Jan Dhan Yojana offers the following benefits:

  1. The scheme provides Accident Insurance worth Rs.1 lakh. However, it is revised to 2 lakhs for the PMJDY accounts opened after 28-08-2018.
    A claim under personal accidental insurance for PMJDY will be payable only if the RuPay cardholder has performed a successful RuPay card-related financial transaction within 90 days preceding the accident.
  2. Under PMJDY, you will receive a RuPay debit card free of charge. You can use the card at ATMs, online merchants, and point-of-sale machines.
  3. Like all savings schemes, you can earn interest on your deposits. However, it must be remembered that the PMJDY  will be subject to the interest rate of a savings bank account.
  4. Government program beneficiaries will receive direct payments in their Jan Dhan accounts.
  5. You may obtain an overdraft of up to Rs 10,000. However, this only applies to one account per household. Accounts are eligible for overdraft after a satisfactory operation for six months.
  6. You can transfer funds at any time using your PMJD account.
  7. You do not need to deposit a minimum amount or maintain any balance. However, if you wish to get a chequebook, you must fulfil the bank’s minimum balance criteria, if any. 
  8. Pradhan Mantri Jan Dhan Yojana provides financial services to rural communities and underprivileged people, bringing them into banking services.
  9. As a PMJDY account holder, you are eligible for the following government schemes:
  • Atal Pension Yojana.
  • Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • Micro Units Development & Refinance Agency Bank scheme.
  • Pradhan Mantri Suraksha Bima Yojana. 
  • Direct Benefit Transfer (DBT)
  1. You can apply for the PM Jan Dhan Yojana online without hassles. This saves you the hassle of waiting in long queues at the bank.

Also Read: How to Deposit Money in Sukanya Samriddhi Account Online?

Life Cover under Pradhan Mantri Jan Dhan Yojana

Life cover is an important aspect discussed under financial schemes. Let’s take a look at the Life cover under PMJDY:

  1. RuPay Debit Card with Insurance: Every PMJDY account holder receives a RuPay Debit Card. This card has an inbuilt accidental insurance cover of ₹1 lakh.
  2. Life Insurance Cover: In addition to the accidental insurance, the Hon’ble Prime Minister, during the launch on 28th August 2014, announced a life cover of ₹30,000. This cover is available to those who opened a bank account with a RuPay debit card before 26 January 2015. This life insurance provides coverage against the death of the insured for any reason, and the amount is payable to the deceased’s family.
  3. Target Audience and Premium Payment: The life insurance cover under PMJDY primarily targets families from the economically weaker sections. Recognizing that many from this segment cannot afford insurance, the scheme provides this cover to offer them a security net. Importantly, the premium for this life cover is borne entirely by the Government of India.

Claim Settlement Procedure of Life Cover under Pradhan Mantri Jan Dhan Yojana

If you’re between 18 and 60 years old, you’re covered with a life insurance amount of ₹30,000. Let’s take a look at the claim settlement procedure:

  • Document Submission: After a holder’s demise, the bank where they had an account will gather the necessary documents: A copy of the death certificate of the deceased account holder. An attested copy of the Aadhar card of the deceased account holder. Any other relevant documents, such as a copy of the bank passbook or statement of account sent to a specific LIC office (known as the P&GS unit) for claim processing.
  • Nominee’s Role: The insurance money is usually paid to the person the holder nominated in their bank account. If there isn’t a nominee or there are complications with the nominee’s status, legal heirs can claim the money by providing a special bond.
  • Payment: Once approved, the insurance amount gets credited to the nominee’s bank account linked with their Aadhar card.
  • Claims Direct to LIC: If someone sends a claim directly to LIC instead of the bank, LIC will coordinate with the bank for verification and then process the claim.

Rate of Interest for PMJDY Scheme

Many public and private sector banks offer the Pradhan Mantri Jan Dhan Yojana scheme. The interest rate on these savings accounts varies from bank to bank, ranging between 2.5% and 5%. Typically, public sector banks offer a higher interest rate. 

Banks Offering the  Pradhan Mantri Jan Dhan Yojana Scheme

Here is a list of public and private sector banks offering the PM’s Jan Dhan Yojana scheme:

Public Sector Banks offering PM’s Jan Dhan Yojana scheme: 

  • State Bank of India 
  • Bank of Baroda (BoB)
  • Union Bank of India
  • Punjab & Sind Bank
  • Dena Bank
  • Allahabad Bank
  • Syndicate Bank
  • Vijaya Bank
  • Central Bank of India
  • Punjab National Bank (PNB)
  • Indian Bank
  • IDBI Bank
  • Corporation Bank
  • Canara Bank
  • Bank of India (BoI)
  • Bank of Maharashtra
  • Andhra Bank
  • Oriental Bank of Commerce (OBC)

Private Sector banks offering  PM’s Jan Dhan Yojana scheme :

  • Axis Bank Ltd.
  • ICICI Bank Ltd.
  • Kotak Mahindra Bank Ltd.
  • Dhanlaxmi Bank Ltd.
  • YES Bank Ltd.
  • HDFC Bank Ltd.
  • Karnataka Bank Ltd.
  • IndusInd Bank Ltd.
  • Federal Bank Ltd.

Final Thoughts

As a financial inclusion programme for the country’s underprivileged population, the PMJDY ticks many boxes. First and foremost, it introduces non-banked people, regardless of their income, to modern banking services. Secondly, you can open an account with zero balance and earn interest on the deposits. Lastly, the Jan Dhan account unlocks various benefits – from accident insurance to RuPay debit cards.

With crores of beneficiary banks, Pradhan Mantri Jan Dhan Yojana is undoubtedly promoting financial inclusivity one account at a time.


What is the meaning of a small account / Chota Khata account under PM’s Jan Dhan Account?

If an individual cannot provide the necessary documents to support identity and address proof, they can open a small account/Chota Khata PMJDY account for 12 months. After 12 months, they must provide the necessary documents to keep the account active.

What minimum amount must I deposit to open a Jan Dhan account?

Jan Dhan accounts do not require an initial deposit. They can be opened with zero balances and do not require you to maintain a minimum balance.

What if I don’t use my RuPay Debit Card for 1 month?

In this case, your Rupay Debit card will stay active. However, if you do not use it for 45 days, it will become unoperational.

Can I transfer my bank account from one city or state to another?

Yes, your Jan Dhan Yojana account is transferable. You can request the bank to initiate the transfer.

What is the procedure for Jan Dhan’s account opening online?

The process is straightforward. All you need to do is download the application form from After this, please fill out the form and submit it with supporting documents. The bank will carry out a KYC verification. Once verified successfully, you will be allotted a bank account.

Can I open a Jan Dhan account if I have no documents?

Yes, you can submit an ID card with a photo issued by a central/state government department, statutory/regulatory authorities, public sector undertakings, scheduled commercial banks, or public financial institutions. If you do not have ‘officially valid documents’ or an Aadhaar card, you can still open an account provided you are categorised as a low-risk customer by the banks.

Can I convert a PMJDY account into a normal savings account?

Yes, a PMJDY account can be converted into a regular savings account.

What are the benefits of linking Aadhaar with a PMJDY account?

Linking Aadhaar with a PMJDY account provides increased benefits and an overdraft facility.

What is the maximum withdrawal an individual can make from a PMJDY account?

An individual can withdraw up to Rs. 50,000 daily from a PMJDY account.

What is the rate of interest on overdrafts available under PMJDY?

The overdraft interest rate under PMJDY is 10.25%.

What is the ‘Chota Khata Account’ under the PMJDY scheme?

The ‘Chota Khata Account’ under the PMJDY scheme is a no-frills savings account.

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Prateek Agrawal

Investment Principal
Prateek is an investment professional with a demonstrated history of working in Debt Capital Markets and wholesale funding to the Corporates. He has more than 9 years of experience in Treasury and Wholesale lending to more than 50 Institutions across India. He is currently working as an Investments Principal at Wint Wealth.

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