Financial inclusion is the least among the rural population of India. Savings Account is considered as the yardstick of financial inclusion. A majority of India’s rural population does not have the required documents or can not maintain the minimum average balance of a savings account.
To make banking accessible to all, the Indian Government has recently come up with PMJDY (Pradhan Mantri Jan Dhan Yojana) which enables the economically weaker sections of the society to open a zero balance account with any recognized public or private bank. Basic Savings Bank Deposit Account (BSBDA) is the name of the bank account opened under this scheme.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) was introduced by the Prime Minister, Narendra Modi, on 28th August 2014 to offer each citizen of the nation a myriad of banking services, right from opening a zero balance savings account.
Pointers to keep in mind before opening a Jan Dhan Account
- You can open a savings bank account under the PMJDY scheme by paying a visit to any branch of the public or private banks or any specified business correspondent outlet known as the “Bank Mitra”. Once your bank account is created, you can use it to avail various types of social security schemes. Bank Mitra serves to be an organization or an individual functioning as the representative of some bank. He or she has been authorized to offer standard banking services in both the rural and urban areas wherein there are no banks or ATMs nearby.
- Opening a bank account under the PMJDY scheme is very simple. You would simply need to visit the nearest bank or the Bank Mitra (in cases there are no banks nearby). Here, you can submit the required documents as afforded or required. In case there is any doubt, you can also consult the bank official or Bank Mitra available there. Once the zero balance savings account is opened, you will receive a specialized RuPay debit card. You can use this debit card to carry out the normal transactions like withdrawing money just like any other debit card.
- All the households across the nation–both in the rural as well as in the urban areas are aimed to be covered under the PMJDY scheme. All the bank accounts that are opened under the scheme need to have an overdraft facility of around Rs.5,000 for the accounts that are linked to Aadhaar card.
Features of the PMJDY scheme
There are several salient features of the PMJDY scheme offered to the residents of India. Here are some of them:
- At least two members of a single family might apply for the zero balance savings account under the given scheme.
- No can deposit and withdraw money for free.
- You can transfer funds with no fees.
- Free life cover of Rs.30,000 along with an accident cover of Rs. 1 Lakh is available for every account holder.
- Individuals with no savings account can open an account under this scheme.
- You will need KYC documents to open this account. However, individuals who don’t have valid KYC documents can open Basic Savings Bank Deposit Account (BSBDA) – Small for 12 months. They need to provide the KYC document after 12 months to continue using their account.
Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to increase financial inclusion by helping them to adopt the formal banking sector. Awareness of the benefits of a savings account can go a long way.
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