The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched by the Indian government, aims to connect every citizen to the formal banking system, especially in rural areas.
This scheme offers zero balance accounts, making it accessible to anyone in India without the burden of maintaining a minimum balance.
Key Benefits of Jan Dhan Account
No Minimum Balance Required:
As a zero balance account, you are not required to maintain any minimum balance, and no penalties are charged for not maintaining one.
This is a major advantage over regular bank accounts where failing to maintain a minimum balance results in charges.
Interest on Deposits:
Like regular savings accounts, you earn interest on the money you deposit into your Jan Dhan account.
Accident Insurance Cover:
For accounts opened after 28th August 2018, you are eligible for accident insurance cover of up to ₹2 lakh with a RuPay ATM card.
For those with accounts opened before this date, the accident insurance cover is ₹1 lakh.
Overdraft Facility:
An overdraft facility of up to ₹10,000 is available for eligible Jan Dhan account holders.
If your account has been open for more than 6 months, you can access the full ₹10,000 overdraft. If the account is less than 6 months old, the overdraft limit is ₹2,000.
The overdraft is essentially a short-term loan that can be withdrawn and used like regular funds, but it must be repaid within a certain period.
Who Can Open a Jan Dhan Account?
Any Indian citizen above the age of 10 years can open a Jan Dhan account.
Accounts can be opened at any bank branch or Bank Mitra outlet.
To open the account, you simply need to fill in a form with your name, mobile number, address, and other personal details.
How to Avail Overdraft Facility?
To avail the overdraft of up to ₹10,000, your Jan Dhan account must be 6 months old. If it is under 6 months, you can only access an overdraft of up to ₹2,000.
The overdraft amount can be easily withdrawn via ATM or UPI, and the loan has to be repaid within the specified period with applicable interest.
Why Should You Open a Jan Dhan Account?
It’s a zero balance account, so you don’t have to worry about keeping a minimum balance.
You receive benefits like accident insurance, overdraft facility, and interest on deposits.
It is designed to make banking more accessible to every Indian, especially in rural areas.
Opening a Jan Dhan account is a great step towards financial inclusion, offering many benefits, especially for those who may not have access to traditional banking services.
