The Pradhan Mantri Jan Dhan Yojana, or PMJDY, was launched by the Union Government in 2014 to provide all Indian citizens, particularly those from low-income backgrounds, access to the most basic banking services.
Under the direction of the Ministry of Finance, this endeavour provides several significant benefits to families throughout the nation and the general populace. Explore how the Pradhan Mantri Jan Dhan Yojana benefits its recipients.
What is Pradhan Mantri Jan Dhan Yojna?
The PMJDY programme aims to provide mainstream banking services to India's economically marginalised population. One of the plan's primary goals is encouraging all adults to open zero balance accounts and low-cost banking options. People in low-paying, disorganised professions unlikely to meet the borrowing conditions of private banks will benefit greatly from such a programme.
Since they have financial freedom for the first time, they may now handle their finances safely and calmly without depending on loan sharks or other dubious saving cooperatives.
Since PMJDY empowers women and integrates them into formal banking systems, it becomes important for women. Women from PMJDY receive qualitative benefits, strengthen their financial circumstances, and increase their security through insurance, coverage, and accident protection.
One of the key components of PMJDY's promotion of financial inclusion and digitisation is the advancement of women's economic and social power in India.
Pradhan Mantri Jan Dhan Yojana (PMJDY) benefits:
Let’s look at some of the top benefits of this scheme.
1. Right to bank account for everyone
Everyone is eligible to open a bank account under PMJDY; it truly doesn't matter what background or documentation the person has. Providing financial services to a larger population than just those who can afford to bank requires a high level of inclusivity, especially for rural residents. Anyone can quickly register for the scheme, which has a streamlined process, and can start using their bank account.
2. No minimum balance requirement
Thanks to this scheme, account users won't have to worry about keeping a minimum balance in their Jan Dhan account. This specific feature will ensure even individuals from low-income backgrounds can open accounts and be free to use them without maintaining a minimum balance.
This benefit is also advantageous to those who have difficulty maintaining a consistent balance in their bank account or cannot lend large sums of money. Lowering the Jan Dhan account minimum balance barrier helps to make the account available to all groups, particularly the poorer classes of society.
Must Read: Minimum Balance Requirements for a Savings Account
3. RuPay debit card
Those who open an account under the PMJDY scheme will also get a RuPay Debit Card. With this card, account holders can easily access their funds at any ATM in India and withdraw cash. It's a multifunctional tool that makes managing funds simple and easy for consumers. People with an account can use their RuPay Debit Card to buy things in stores and online.
This step will also give more people access to financial services. The government wants to eliminate cash from the market, so this card can also be used to pay for things without cash. Also, there are no fees for giving the RuPay Debit Card to people with a PMJDY account, meaning everyone can use banking services.
4. Insurance coverage
When someone joins the PMJDY plan, they automatically get Rs. 30,000 in life insurance. This kind of insurance protects people and those close to them financially in case something bad happens. Everyone, even those struggling financially, has a way to get by.
The government wants to make things cheaper and more stable for people who can't afford insurance by expanding insurance coverage. This program aims to help everyone access financial services to protect themselves and their family from sudden events. The government hopes PMJDY will improve poor areas' social and economic situation by giving them the basic banking services and safety they need.
5. Facility for overdraft
After 6 months of using PMJDY, the account holder can apply for an up to Rs. 5,000 overdraft limit. However, emergency loans' ability to offer immediate access to funds without security is beneficial, particularly for those facing emergencies or financial troubles.
People who have an overdraft facility can use it to pay for pressing costs like medical bills or tuition. It's also a safety net for people who accidentally run out of money, giving them time to regain their assets.
Must Read: How to Open a Jan Dhan Account (PMJY) Online
6. Easy money transfers
One of the best things about the Pradhan Mantri Jan Dhan Yojana (PMJDY) is it makes sending money to other people easy. People in the same family can quickly send money to each other between banks anywhere in the world. Because the PMJDY makes cash transfers simpler and faster, the money gets sent quickly and directly to the people who were given the money.
PMJDY lets you send money without any stress, whether you prefer the speed and convenience of digital payments or the safety of face-to-face meetings. The programme also gives people who may not have had any banking relationships before the same cash standing as everyone else.
7. Access to mobile banking
Access to banking has significantly changed since mobile banking was introduced into the PMJDY project, mostly for rural regions. Rural communities have accessed traditional banking services through basic mobile phones, successfully used in remote places to execute banking transactions.
Account holders can monitor their balances, receive transaction notifications, move money between accounts, and check their balances using simple-to-use SMS-based services and mobile banking apps. Financial inclusion has not only reached a wider audience because of technological empowerment, but it has also helped individuals become economically independent by providing them with access to banking services that were previously unavailable.
Conclusion
The PMJDY helps the poor escape poverty by giving every family a bank account and ensuring everyone can access cash. The plan helps with well-being, social success, and economic growth in many ways. Because of these steps, people will make more money, and the country will grow.
Open a kotak811 savings account right now to get benefits similar to Jan Dhan's account. You do not have to keep a certain amount of money in your Kotak811 account to use several banking services.
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