Pradhan Mantri Jan Dhan Yojana (PMJDY) is a big step towards financial inclusion in India. A Jan Dhan bank account offers some special facilities. One of the significant benefits under the scheme is free debit card and accidental insurance cover for account holders. Under PMJDY, a RuPay debit card is provided to account holders.
In 2018, the government enhanced the accidental insurance cover under the RuPay scheme for Jan Dhan account holders.
For accounts opened after August 28, 2018, an accidental insurance cover of Rs 2 lakh is available and for those accounts opened before August 28, 2018, accident insurance cover of Rs 1 lakh is available.
Launched in August 2014 targeting the bottom of the financial pyramid, PMJDY accounts constitute a quantum leap in the direction of financial inclusion and has a target of opening a bank account for each adult.
Bank accounts under PMJDY have crossed the 44 crore mark till October 2021. According to official data, more than 73% of the beneficiaries have debit cards that allow them to operate ATMs and even do online purchases.
Personal accidental insurance under PMJDY shall be payable if the RuPay card holder has performed a minimum one successful transaction within 90 days prior to the date of accident. In that case the accident date will be included.
Other than RuPay debit card and insurance facility, the Pradhan Mantri Jan Dhan Yojana offers a number of benefits, such as no minimum balance requirements, overdraft (OD) facility of up to Rs 10,000, basic savings account facilities and interest earned on deposits.
A Jan Dhan account can be opened by any Indian citizen over the age of 10. You can even transfer funds from your regular savings account to your Jan Dhan Yojana account.
If the individual has an Aadhaar card, no other documents are necessary to open a Jan Dhan account.
If he or she does not have an Aadhaar card, still can open a Jan Dhan account in the bank. In that case he or she has to submit a voter ID card, a PAN card, a driving licence or a passport.
According to the latest RBI guidelines, a PMJDY account will be considered as inoperative if there are no customer induced transactions in the account for over a period of two years.
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