Major Milestone Achieved, Govt Opens Over 55 Crore Jan Dhan Accounts: Benefits of PMJDY Welfare Scheme

New Delhi: The Modi government has achieved another milestone by opening 55 crore Jan Dhan accounts, providing banking access to citizens who previously lacked it, and integrating them into the financial system so that they can avail benefits of welfare schemes.

Achieving this major feat, citizens, whether urban or rural, are directly benefiting from banking facilities and becoming economically empowered.

These bank accounts are being opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which was first launched in August 2014 in the first term of the Modi government.

According to the government, out of the 55 crore Jan Dhan accounts, 36.63 crore are in rural and semi-urban areas.

Highlighting efforts to improve citizens' financial inclusion through government schemes and services, Pankaj Chaudhary, Minister of State for Finance, stated that the Pradhan Mantri Jan Dhan Yojana aims to provide universal banking access to all unbanked adults, following the principle of banking the unbanked, securing the unsecured, and serving the unserved.

Benefits of Pradhan Mantri’s Jan Dhan Accounts

Basic savings account

With a Jan Dhan account, citizens gain access to the country's banking system as the government opens primary savings accounts for them.

Benefits of welfare schemes

The accounts receive money through the Modi government's Direct Benefit Transfer (DBT) process if the person is eligible for various welfare schemes.

RuPay debit cards

In addition to having a bank account, beneficiaries of Jan Dhan accounts also receive RuPay debit cards. These cards offer accident insurance coverage of Rs 1 lakh if the account was opened before August 28, 2018.

Overdraft facility

Account holders can access an overdraft facility of up to Rs 5,000 or even Rs 10,000 in some cases if the account is operated smoothly during the first six months of opening.

Loans

Beneficiaries of the Pradhan Mantri Jan Dhan Yojana may avail loans, depending on their needs and eligibility to start small business and become self-dependant.

Government social security schemes

A PMJDY beneficiary is entitled to benefits from other government welfare schemes, such as the Pradhan Mantri Suraksha Bima Yojana, pension benefits, and the Pradhan Mantri Jeevan Jyoti Bima Yojana, among others.

Life insurance

Eligible beneficiaries whose Jan Dhan accounts were opened between August 15, 2014, and January 26, 2015, receive life insurance coverage of Rs 30,000.

In addition to above mentioned benefits, Jan Dhan accounts, like any other savings account, offer all the standard features and advantages of having a bank account.

The primary aim of the government in opening Jan Dhan accounts is to connect millions of people to banking facilities, many of whom previously lacked access to such services, enabling them to maximise the benefits of government schemes and take benefits of all the digital facilities.