Who can open a Jan Dhan Account?
A bank account is often a basic necessity for all. It helps you keep your money safe, enables online and cashless transactions, and entitles you to earn interest for your parked money. Unfortunately, we still have a vast population that is unable to enjoy some basic amenities such as a bank account. There could be several reasons for this, from the lack of knowledge to access.
The Pradhan Mantri Jan Dhan Yojana is a scheme that seeks to address this issue. The plan aims at financial inclusion, helping many access financial and banking services that are otherwise inaccessible to them. This includes a service called Jan Dhan account, a basic bank account with a debit card and even insurance coverage with minimal processes. This programme aims to ensure every citizen of India has a bank account. But who can open a Jan Dhan Account? And who is eligible for the Jan Dhan account? Let us explore more about Jan Dhan accounts through this article.
Who can open a Jan Dhan Account?- Eligibility Criteria
Let us first see the criteria for opening a Jan Dhan account.
- Individuals who open the Jan Dhan account should be of Indian nationality. The scheme is made exclusively to ensure India’s greater financial inclusion.
- The Jan Dhan scheme allows people with no valid documents to open an account under certain conditions. To begin with, the bank must do a background check of the person and deem them as being ‘low-risk,’ After that, he/she can open a bank account by submitting any one of the following documents:
- An Identity Card with a photograph of the applicant issued by a Central/State Government Department, a Statutory/Regulatory Authority, a Public Sector Undertaking, a Scheduled Commercial Bank, or a Public Financial Institution;
- A gazette officer’s letter with a photo of the person attested.
- Minors also can open a bank account under the scheme, but they must be at least ten years old. Additionally, a minor needs the approval of their parent/legal guardian to open the account. The management of the account is also partially entrusted to the guardian. Minors are eligible to get a Rupay debit card when they open an account under the Pradhan Mantri Jan Dhan Yojana scheme.
- As said above, Jan Dhan accounts are curated for people who do not have a bank account for several reasons, including accessibility. But the scheme allows you to open a bank account even if you have another savings account. You can approach your bank for the same and transfer the account to Jan Dhan account. This helps you enjoy the benefits of Jan Dhan accounts without much paperwork.
- You need to have an identity and address proof to open a Jan Dhan account. But similar to the case of nationality proof, many may not have proper identification proof. Here, you can submit any form of identity signed by a gazetted officer to open a bank account.
Who can apply for Life insurance under the PMJDY Scheme?
The PMJDY also has a provision to subscribe to a life insurance policy. Such a policy can ensure that a family is kept financially protected even if the earning member of the family passes away.
Let us now look at the Pradhan Mantri Jan Dhan yojana eligibility criteria for the life insurance scheme.
- The life insurance plan under the PMJDY scheme is currently open to all individuals who opened a Jan Dhan account between 15th August 2014 to 31st January 2015.
- The minimum age for a life insurance policy is 18, and the maximum age is 59.
- The life insurance policy is aimed at helping families financially if the head of the family, who is an earning member, passes away. Hence, the head of the family is eligible for life insurance coverage. But on occasions where the head of the family is over 60 years old, the second earning member of the family will be eligible for life cover.
- You should have a Rupay card that is linked to your Jan Dhan account. This is usually given to all Jan Dhan account holders by default. The life insurance policy is valid as long as the Rupay card is valid. Hence, make sure you keep your Rupay card working and ensure it is renewed on expiry.
- If a person has multiple bank accounts and Rupay cards, the life cover will only be approved for one of the bank accounts/Rupay cards. The coverage will start as soon as the bank account is opened.
- You are not eligible for life cover if you are a state or central government employee.
- You are not eligible for life cover if your income comes under the taxable bracket.
How is Pradhan Mantri Jan Dhan Yojana different from previous financial inclusion plans?
The PMJDY plan aims at a much larger inclusion. The earlier plans were mainly aimed at ensuring inclusion at the rural level, while PMJDY doesn’t have that limitation. It focuses on coverage of rural as well as urban areas.
The PMJDY scheme has been instrumental in facilitating the widespread financial inclusion of citizens from all sections of society. If you are among those who can open an account under PMJDY, contact your nearest bank branch to open your Jan Dhan account today.
Can I open a Jan Dhan account without a PAN card?
A PAN card is an essential document when opening a bank account in normal circumstances. But the Pradhan Mantri Jan Dhan Yojana aims at inclusion, and a lot of people are left out because they don’t have documents such as a PAN card. Hence, banks allow you to open a Jan Dhan account without submitting the PAN card if you don’t have one.
How much money can we deposit in a Jan Dhan account?
The Jan Dhan account is a basic bank account provided to citizens who didn’t have a bank account previously to enhance inclusivity. Hence, the account has some limitations. This includes a maximum deposit limit of Rs.1 lakh. Banks provide free Rupay debit cards and mobile banking services with these accounts as well.
What are the documents required for opening a Jan Dhan account?
It would help if you had an identity and address proof to open a Jan Dhan account. This could include your Aadhaar card, voter ID card, driving licence, etc. Most banks require PAN cards to open a bank account, but Jan Dhan accounts are exempt from this.
Is the zero balance account and Jan Dhan account the same?
There are no minimum balance requirements in the Jan Dhan account, similar to a zero-balance account. But Jan Dhan accounts are aimed at providing for people without bank accounts and hence come with an array of distinct benefits.
Is KYC required for a Jan Dhan account?
Under the new terms, you need not provide KYC documents at the time of account opening if the banks deem you as a low-risk person.