How to Transfer Old Accounts Under Jan Dhan Yojana

If you already have a deposit account and want to transfer your old account under Jan Dhan Yojana, you’ll have to get a Rupay card from your financial organisation. Once the transfer is complete, you can avail the overdraft facility under the scheme.

Pradhan Mantri Jan Dhan Yojana was started to ensure access to a wide range of financial services such as availability of basic savings bank account, access to need based credit, remittances facility and much more. The plan aims to provide universal access to banking facilities with at least one basic banking account for every household. All households that open bank accounts under the Jan Dhan Yojana scheme will get an accident insurance worth Rs.1 lakh and many other benefits.

Transfer old accounts under Pradhan Mantri Jan Dhan Yojana

Many account holders would want to transfer their old deposit accounts under Jan Dhan Yojana given the lucrative benefits. The account holder is usually advised to refrain from re-opening a different account under the scheme to avoid complexity.

The account holder of any bank or financial institution just needs to issue a Rupay card in order to avail the insurance benefits under the Pradhan Mantri Jan Dhan Yojana Scheme if they intend to transfer their old accounts under the scheme. The account holder can also avail the overdraft facility provided under the scheme with their exisiting account given that the account has been operated and the account holder is not a loan payment defaulter.

Eligibility criteria list of Jan Dhan Yojana Account

To open a Jan Dhan Yojana account, an applicant needs to fulfil the following eligibility criteria:

  • Applicant of Jan Dhan Yojana should be an Indian to open an account under this scheme.
  • Applicant should be above 10 years of age and should have a guardian to manage the account on behalf of him or her.
  • Applicant will also be eligible for a RuPay Card using which he or she can withdraw up to four times from any ATM.
  • Even if the applicant does not have valid documents to prove his nationality, the bank allows opening of the account based on ground research on the person, categorising them under ‘low risk’.
  • If an individual holds a savings bank account with a bank, he or she can transfer his account to Pradhan Mantri Jan Dhan Yojana in order to avail benefits from it.

Impact of demonetisation on Pradhan Mantri Jan Dhan Yojana

Although the demonetisation targeted the rich who has unaccounted money, it seems to have made the poor richer with the help of a new concept called Benami Deposits. All the holders of Jan Dhan Yojana have now become rich, post demonetisation as these accounts have now become holders of some unknown accounts. The unaccounted money has been parked by the rich in these accounts. Since demonetisation, it was noticed that Jan Dhan accounts went up from Rs.5,000 to Rs.50,000 in cash deposits in most of the zero-balance accounts. Majority of the accounts witnessed first ever transactions since their opening. As a result of banning Rs.500 and Rs.1,000 notes, benami transactions have taken over through accounts such as Jan Dhan Yojana.

Doubled average deposit in Jan Dhan Yojana accounts in 21 months

Under the Pradhan Mantri Jan Dhan Yojana, the average deposit in each account increased by 118% from Rs.795 in September, 2014 to Rs.1,735 in May 2016. The deposits went up by nearly eight-times (790%) to Rs.38,048 crore in May 2016 from Rs.4,273 crore in September, 2014. Direct benefit transfers from the government are visible through these accounts. The average balance in non-zero accounts have reduced as people tend to withdraw from it. Jan Dhan Yojana intends to create a banking habit.

According to Census 2011, only 58.7% (145 million households), out of 247 million have access to banking services. Out of which, 91 million rural household and 53 million urban households accessed the banking system. As on 25th May, 2016, about 219.3 million Pradhan Mantri Jan Dhan Yojana accounts were opened, out of which 134.7 million belong to rural accounts, while 84.6 million belong to urban households.

Can we open joint accounts under Jan Dhan Yojana scheme?

The Pradhan Mantri Jan Dhan Yojana allows you to open a joint account. Apart from the amazing benefits of having a Jan Dhan Yojana account, it also provides its members with a debit card for free.

Facilities such as accident insurance and normal insurance are also provided free of charge. The joint facility has been enabled under this scheme to help adults and minors.

Can an existing account holder avail benefits of the Jan Dhan Yojana?

An already existing bank account holder can avail benefits of the Jan Dhan Yojana, without having to open another bank account. The insurance benefits can be availed through the RuPay Card given under the scheme. The existing account holders are required to submit an application to the respective branch to provide them with a RuPay Debit Card. Using the card, you can avail all insurance benefits under the PMJDY (Pradhan Mantri Jan Dhan Yojana).

Can we take a loan under PMJDY?

Under the PMJDY, account holders can avail loans just like normal bank account holders. There are no special terms and conditions for account holders of the Jan Dhan Yojana Scheme. The only important thing in taking a loan under this scheme is the required documental proof and properties. These proofs make it easier to avail a loan under the PMJDY.

Account holders of PMJDY who want to take a loan for start a business or company, it is mandatory to provide proper documents along with the application form. Given below are the steps needed to be followed in order to avail a loan under Pradhan Mantri Jan Dhan Yojana:

  1. Visit the bank where you are planning to apply for the loan and find out all the requirements to avail the loan. Clear all your doubts by meeting a bank executive or consulting the bank manager.
  2. Read in detail the policies and loan requirements mentioned by the bank to avoid any problems in the future.
  3. Get an application form from the bank and fill in accordingly.
  4. Attach all the documents required.
  5. Visit the bank with the duly filled form. The bank may ask for surety signatures as an assurance for your bank loan, so be prepared.
  6. After submitting the application, the bank is responsible for verifying your documents, and proofs. Once verified, the bank approves the loan and sanctions it from their end.

Features of Pradhan Mantri Jan Dhan Yojana

Listed below are the features of Pradhan Mantri Jan Dhan Yojana

  • The main purpose of the scheme is Financial Inclusion
  • The scheme targets to open bank accounts for 7.5 crore families in over one year
  • Minors of the age 10 and above can open the account too
  • The scheme offers an accidental cover of Rs.1 lakh to the account holder
  • The accounts under the scheme are zero balance accounts which means that the account holder need not maintain a minimum balance in the account
  • The scheme offers a Rupay Debit card
  • Account holders who transact regularly with their Rupay debit card and maintain a good balance in their bank account can avail an overdraft of Rs.5000 after six months into the opening of the account
  • The scheme also offers life insurance cover up to Rs.30,000
  • Provides access to pension and insurance products
  • Easy transfer of money across the country


  1. Who can avail the overdraft facility of Rs.5,000 in the PMJDY account?

    Under the PMJDY, only one account holder per household is allowed an overdraft facility of Rs.5,000, after completion of six months of satisfactory conduct of the account. For this facility, the account holder is required to provide the Aadhaar number.

  2. If I already have a bank account, do I have to open another bank account for PMJDY to avail its life insurance and accidental death benefit?

    No, if you already have a bank account, you do not have to open another for PMJDY. You can just avail a RuPay Card towards your existing bank account. You can also extend its credit facility if the account is being operated satisfactorily.

  3. What is accidental insurance cover under the PMJDY and who is supposed to pay the premium?

    An accidental insurance cover of Rs.1 lakh is provided under the PMJDY. No premium is charged from the beneficiary and NPCI will have to pay the premium. A premium of Rs.0.47 per card is charged at present.

  4. If the PMJDY account is jointly held by both husband and wife, will the accidental insurance cover and life insurance cover be provided to both? What about the overdraft facility?

    In a joint PMJDY account held by husband and wife, both can avail the accidental insurance cover of Rs.1 lakh and life insurance cover of Rs.3,00,000. However, the overdraft facility of Rs.5,000 can be only availed by one person of the household, preferably the wife.

  5. What are the documents required to open a Pradhan Mantri Jan Dhan Yojana?

    The following documents are required:

    Aadhaar Card or number. If this is available, no other document is necessary.

    In case of non-availability of Aadhaar card, any of the documents such as Driving License, Voter ID, NREGA Card or Passport is acceptable. If these documents contain your address, it suffices as both your identity as well as address proof.

    ‘Low risk’ applicants with none of the above mentioned documents can provide a government issued ID with the applicant’s photograph or a letter from a gazetted officer with a duly attested photograph of the applicant.

  6. Can the overdraft facility in PMJDY be availed in more than one account?

    The overdraft facility of up to Rs.5,000 under PMJDY can be availed by only one member of the household holding the account, preferably the lady of the household.

  7. What happens if the address printed on the Aadhaar Card is not the same as the current address? Can the Pradhan Mantri Jan Dhan Yojana account be still opened using the Aadhaar Card?

    If there has been a change in the address of the applicant, a self-certification of the present address is required.

  8. Will there be any cheque book issued under the Pradhan Mantri Jan Dhan Yojana to its holders?

    Although the PMJDY accounts are zero balance accounts, account holders can avail the cheque book facility if he or she wishes. This is only possible if the account holder fulfills the minimum balance criteria of the bank.

  9. How much interest does the bank charge on an overdraft facility under the Jan Dhan Yojana Scheme?

    The bank charges base rate + 2% or 12%, whichever is lower. Presently, it is at 12%.

  10. Under the PMJDY, how much interest can I earn as savings?

    The current interest rate applicable for PMJDY accounts is at 4% in most of the banks.

  11. Does the bank charge any fee to open an account under the Pradhan Mantri Jan Dhan Yojana?

    Yes, the bank has been charging Rs.20, with effect from 1st April, 2015 from customers opening accounts under the PMJDY.

  12. Can my Jan Dhan Yojana account be transferred to another city or state when I move to another place?

    Yes, the transfer of the PMJDY account from one city or state to another is possible as most participating banks operate on the CBS (Core Banking Solution) platform. This enables an easy transfer from any branch of the bank in any city or state to another aws per the account holder’s request.

  13. Can a minor aged below 18 years open a PMJDY account?

    Yes, a minor aged below 18 years can open a PMJDY account. The minimum eligible age for opening an account is 10 years.

  14. Are illiterate customers allowed to hold a RuPay card under the PMJDY?

    Yes, even illiterate customers are allowed to hold a RuPay card under the PMJDY. However, it is the responsibility of the Branch Manager to inform the account holder about all the related risks at the time of issuance.

  15. What are the special or direct benefits of the PMJDY?

    Some of the special benefits of the scheme are:

    • Interest on deposit
    • Rs.1 lakh accidental insurance cover
    • Zero balance account
    • Rs.30,000 life insurance cover
    • Access to pension and insurance products
    • Overdraft facility after 6 months of satisfactory operation
    • Easy transfer of money within India

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