Pradhan Mantri Jan Dhan Yojana: All You Need To Know

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Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is part of the National Mission for Financial Inclusion of the poor to ensure their access to financial services, namely, banking, savings and deposit accounts, remittance, credit, insurance, and pension, in an affordable manner.



The aim of PMJDY is to reduce poverty. The scheme aims at alleviating the poor from the cycle of poverty through financial inclusion.


How Does It Work?

The scheme ensures access to financial products and services at an affordable cost and also ensures the use of technology through a lower cost and wider reach.


Basic Tenets Of Scheme

There are three tenets of PMJDY– Banking The Unbanked, Securing The Unsecured, and lastly, Funding The Unfunded.

1) Securing The Unsecured

This provides for the issuance of indigenous debit cards for cash withdrawals and payments at merchant locations, with free accident insurance coverage of Rs 2 lakh.

2) Funding The Unfunded

In this, other financial products, such as micro-insurance, overdraft for consumption, micro-pension and micro-credit are provided.


3) Banking The Unbanked

The first tenet is banking the unbanked. This is done by opening basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance and zero charges.