PMJDY Bank Account News: Rs 10,000 Overdraft Facility and Other Details to Know as Program Ends 8 Years
The government’s flagship financial inclusion program – Pradhan Mantri Jan Dhan Yojana (PMJDY) – has completed its eight years. The program has been successful in bringing unbanked sections of society into the banking system. At present, there are 46.25 million beneficiaries banked under PMJDY since its inception.
The program has been the cornerstone of many people-centered economic initiatives. Whether it is direct benefit transfers, COVID-19 financial assistance, PM-KISAN, wage increases under MGNREGA, life and health insurance coverage, the The first step in all of these initiatives is to provide every adult with a bank account, which PMJDY has nearly completed.
PMJDY offers the poor a way to bring their savings into the formal financial system. It also provides a way to return money to their families in the villages in addition to getting them out of the clutches of loan sharks. Here is an overview of some key features of bank accounts opened under this program:
- The scheme provides basic savings bank accounts with an overdraft facility of Rs. 10,000 to each eligible adult.
- The upper age limit for OD has been raised from 60 to 65 years old.
- The overdraft up to Rs 2000 is authorized without any condition.
- RuPay Card Insurance: PMJDY provides free accident insurance cover on RuPay cards which has been increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
- Insurance: Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on accounts opened between 15th August 2014 and 31st January 2015.
- A PMJDY account is considered inoperative if there are no customer-induced transactions on the account for a period of two years.
Also Read: Top 7 Savings Account Benefits You Should Know About
PMJDY accounts tripled from 14.72 crore in March 2015 to 46.25 crore as of 2022-08-10. As of August 10, 2022, 55.59% (25.71 crore) of Jan Dhan account holders are women and 66.79% (30.89 crore) of Jan Dhan accounts are in rural and semi-urban areas. The total deposit balances under the PMJDY accounts stands at Rs. 1,73,954 crores. The average deposit per account is Rs. 3,761.
Also read: How to choose a suitable savings account
Commenting on the 8-year completion of PMJDY, Finance Minister Nirmala Sitharaman said in a statement: “The success of PMJDY since August 28, 2014 is reflected in terms of opening more than 46 crore bank accounts with a balance of deposit of Rs 1.74 lakh crore with its coverage extended to 67% of rural or semi-urban areas as well as 56% of female Jan Dhan account holders.The pursuit of PMJDY beyond 2018 saw a Marked shift in approach… There has been a shift in focus from “every household” to “every adult”, with added emphasis on using accounts by improving direct benefit transfer (DBT) flows through these accounts, promoting digital payments through the use of RuPay cards, etc.