In 2014, the government introduced the Pradhan Mantri Jan-Dhan Yojana (PMJDY) with the focus of broadening the access of financial services to people in the country. With this concept mind, banking services such as deposits, credit, insurance, pension schemes were made affordable to appeal to the masses. Axis Bank too rolled out the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account. The benefits of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account is that with minimum requirement, individuals can have access to a number of privileges.
Features and benefits of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account in Axis Bank
- The primary benefit of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account is that it is a zero-balance savings account. In other words, there is no minimum balance requirement and no maintenance charges.
- The Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account comes with a Free RuPay card at the time of opening the account.
- 4% p.a. interest rate on deposits.
- For people who do not have valid government approved documents, they can open a ‘small savings account’ - which only requires the customer to affix his/her thumbprint, signature and provide his/her passport photo.
- Affordable rates for insurance, taking out pension schemes, remittance in both urban and rural areas.
One can even open a Basic Savings Bank Deposit Account (BSBDA). The benefits of a Basic Savings Bank Deposit Account (BSBDA):
- There is no requirement for minimum balance.
- Once can make a deposit or a withdrawal either at the bank branch or at an ATM.
- One can facilitate the convenience of online banking either to make transactions, transfer funds, shop, etc.
- Free ATM card.
- 4 free withdrawals at other domestic bank ATMs.
- One can avail the services of Bank Mitra if there are no bank branches or ATMs close by. Bank Mitra is either an individual or an organization that is government approved and offers the basic banking services if there is no bank branch or ATM within a convenient distance.
- Overdraft facility up to Rs.5,000 is available to customers who have satisfactorily held the account for six months. To avail this, customers have to submit their Aadhaar card.
- Just by holding the account, customers can avail life insurance cover of Rs.30,000 and accident insurance cover of Rs.1 lakh.
- Free checkbooks are granted when one opens the account.
- Mobile banking without having to download the app.
- The process to transfer one’s account between the branches of Axis bank anywhere in the country is relaxed.
- Any grievances or complaints can be made just by calling the local bank branch.
Eligibility criteria and documents required to open a Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account
- Any individual that is a resident of India and above the age of 10 years can open a Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account.
The documents required to open this saving account are:
- Identity card that has been certified by the Government of India - PAN card, Aadhaar card, Passport, Driver’s license, NREGA card, etc.
- Address proof - Voter’s ID card, Passport, Driver's license, etc.
- For those who do not have valid identification, one has to get their photo along with a letter addressing the situation. The letter should be attested by a Gazetted officer, magistrate or any Central or State Government official.
Individuals that can start Bank Mitra
As already mentioned, Bank Mitra can be initiated either by an individual or an organization. For individuals or companies that wish to start a Bank Mitra in areas that do not have bank branches or ATMs, they have to be either:
- A bank employee that has retired.
- Retired teacher from government institutions.
- Government employee that has retired - above the age of 58 years.
- Owner of medical shops, wholesale shops, etc.
- An agent of small savings schemes authorized by the Government of India.
- A non-banking financial company that usually does not take deposits.
- Public Call Office operators
- A company listed under ‘For Profit’ under the Indian Companies Act.
Fees and charges for the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account
- Since the Pradhan Mantri Jan-Dhan Yojana (PMJDY) savings account was launched to aid people that do not have access to financial services and those underprivileged, there are no opening account processing fees.
- Neither is there any premiums or fees for the life and accident insurance that is provided.
- Not more than Rs.1.50 for any mobile banking facilities.
- Interest amount on overdrafts are on the base amount.
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