What’s Jan Dhan Yojana?
The Pradhan Mantri Jan-Dhan Yojana (PMJDY), a national mission aimed at greater financial inclusion in India, was announced on August 15th, 2014. The main purpose of Jan-Dhan Yojana is to ensure banking facilities for all households across the country with the help of efficient use of technology.
Objectives of Pradhan Mantri Jan Dhan Yojana scheme
The objectives of Jan-Dhan Yojana are as listed below:
- Universal access to banking facilities for all sections
- Improving financial literacy via financial literacy centres
- Pension facility for unorganised sector (Swavalamban)
- Access to need-based credit
- Reactivation of dormant accounts
- Savings bank accounts for all adult citizens
- Credit guarantee fund
- Micro-insurance facility
- Overdraft facility ( up to Rs.5000 after six months of satisfactory credit history)
- RuPay debit card facility
To achieve the aforementioned objectives, the scheme is set to be implemented in two phases ending on August 14th 2018. The Pradhan Mantri Jan-Dhan Yojana aims to deliver results through inter-departmental convergence, public-private partnerships and most importantly by the Bank Mitr (business correspondent) model. The Pradhan Mantri Jan-Dhan Yojana, therefore, aims to bring the financially excluded sections or segments into the fold of mainstream banking services in the country. To the end, all 6 lakh villages in the country are being mapped based on the service area of each bank to zero in on one banking outlet to reach out to 1000 or 1500 households known as Sub Service Areas (SSA). Different banks are allocated their Sub Service Areas. Also, unemployed youth, retired bank employees, self help groups, civil society organisations and non-deposit NBFCs among many other entities or individuals approved by RBI are eligible to be Bank Mitr. The department of financial services is to monitor all activities and progress towards establishing SSAs.
Documents required for opening a Pradhan Mantri Jan Dhan Yojana account
The required documents for opening a Jan Dhan Yojana account are listed below:
- An eligible individual needs to have a valid permanent or current proof of address such as aadhar card, passport and so forth. Aadhaar card is an essential identity proof. Individuals who are yet to receive their Aadhaar cards should track the status of their card online
- An eligible individual should produce his or her two passport-size photographs
- In case an individual shifts or changes his or her residence, he or she should produce the relevant documents which prove the change of address
- In case an individual does not have any residential proof, he or she should submit a valid identity proof issued by the government
- Eligible individuals can acquire a authority letter from any gazetted officer in the country as proof that he or she is an Indian national or resident of India
In the event of an individual’s failure to submit any of the aforementioned documents as proofs, the concerned bank should conduct a background check of the individual. If the concerned bank considers the individual ‘low risk’, the latter can open a temporary account or a small account for a period of one year. However, the individual has to submit the aforementioned required documents to convert the temporary account into a permanent account before one year of association with the concerned bank.