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Pradhan Mantri Jan Dhan Yojana

Life Insurance Corporation (LIC) is an insurance and investment company, widely popular in India. Prime Minister Mr. Narendra Modi established the ‘Pradhan Mantri Jan Dhan Yojana’ in 2014. The Pradhan Mantri Jan Dhan Yojana aims to ensure access to all kinds of financial services like banking, credits, savings, deposits, pension and insurance to the ignored sections of the society i.e. weaker sections & people from the low income groups. PMJDY makes these products and services available to people in a cheap and affordable manner. Accounts under PMJDY can be opened with zero balance at any branch or business organisation outlet. In case, you as the account holder want a cheque book for the mentioned PMJDY bank account, then you have to keep the minimum required balance. Under this scheme, Approx. 32.41 crore Jan Dhan accounts have been opened with more than Rs 81,200 crore of deposit balance. The primary objective of the PMJDY is to motivate and thus increase the number of households into the system of banking in India.

Key Features of Pradhan Mantri Jan Dhan Yojana

  • Account holder receives Rupay debit card.
  • No minimum balance is required.
  • Rs. 1 lakh of accident insurance cover free.
  • Accounts opened after 28.8.18 will get accidental cover of Rs 2 lakh

At the time of inception of this scheme, an extraordinary characteristic was included to the rest of the features. This additional key feature was a life insurance cover of Rs. 30,000 for all first time account holders. This is available only if you open an account under the PMJDY scheme. This life protection is provided by Life Insurance Corporation of India (LIC). An exclusive fund to fulfill these claims has started in this scheme. The premium is deducted from the Social Security Fund. For rural landless household, the rest of the 50% premium is undertaken from the State government or Union Territory. For other field groups, 50% premium is sustained by the Nodal agency/ State Government/ Union Territory.

Benefits of Pradhan Mantri Jan Dhan Yojana

There are many benefits under the PMJDY scheme for you as well as for the country as a whole. By making changes in the banking field along with making insurance and other services available to all people from all classes of the society, the country’s economy will certainly bloom. The remunerative benefits offered by this scheme is definite worth investing into.

  • Interest on deposits.
  • Nil minimum balance.
  • Rs. 1 lakh insurance cover for accidents.
  • Accounts opened after 28.8.18 will get accidental cover of Rs 2 lakh
  • Rs. 30,000 life cover provided by LIC.
  • Hassle-free transfer all around India.
  • Government scheme beneficiaries receive Direct Benefit Transfer in this account.
  • Overdraft service provided after 6 months of account operation.
  • Rs. 5000 of overdraft service is available to one person in each household. Most preferably a lady.
  • Insurance and pension products available.
  • The claim for Personal Accident Insurance under the PMJDY is to be paid only if the Rupay card holder has completed two financial transactions at any branch, bank, ATM, etc.

Eligibility Criteria for Pradhan Mantri Jan Dhan Yojana

  • Individual’s age should be between 18 years of age to 69 years.
  • Life insurance cover is provided only for the head of the family. If he or she is above 60, then the second eldest earning member is offered life cover. If there are joint account holders under this scheme, then the first one will get the life cover. If you are a part of another government scheme like ‘Aam Aadmi Bima Yojana’, you will not be eligible for the life cover offered by Pradhan Mantri Jan Dhan Yojana.
  • Minors more than 10 years old can also open an account under this scheme. However, this account will have to be run by their guardian.
  • Minors are also eligible for Rupay cards through which they can withdraw money.
  • To be entitled to the benefits that PMJDY offers, individuals can also transfer their normal savings account to a PMJDY account.
  • Even individuals that have no proof of Indian nationality are allowed to open PMJDY accounts provided they are marked as ‘low risk’ by the concerned bank after doing a thorough background check.

Life Cover under Pradhan Mantri Jan Dhan Yojana

The Prime Minister founded a scheme called Pradhan Mantri Jan Dhan Yojana to include families of the deprived classes into financial organisations. The aim of this scheme was to provide a bank account to every family that did not have one up until now. To avail financial services to the weaker class was the main purpose of introducing this scheme. This scheme consists of an accident insurance cover of Rs. 1 lakh and a Rupay card. On 28th August 2014, Prime Minister Narendra Modi announced a life cover of Rs. 30,000 for account holders under this scheme. This insurance cover provides coverage for the account holder’s life. It offers coverage to the family of the account holder, in case he/she dies. The premium for the life cover is sustained by the government of India. Pradhan Mantri Jan Dhan Yojana makes it possible for deprived persons to have a life insurance. Accounts opened after 28.8.18 will get accidental cover of Rs 2 lakh

Claim Settlement Procedure of Life Cover under Pradhan Mantri Jan Dhan Yojana

  • Firstly, the nominee has to inform the bank in which the PMJDY is in effect, about the death of the insured i.e. the account holder.
  • The nominee has to submit the following documents: Death certificate of the account holder (attested) Aadhaar card of the account holder Xerox of ration card Rupar card verification details Claim form Discharge receipt Legal heirs must provide indemnity bond
  • The bank in which the account under PMJDY was opened, will then register the claim with LIC.
  • Once all of this is verified, the death claim benefit of Rs. 30,000 will be settled by the Pension and Group Scheme office of LIC.
  • The amount will be credited to the bank of the nominee or legal heirs by ABPS.

Death Benefit under Pradhan Mantri Jan Dhan Yojana Scheme

The death benefit under Pradhan Mantri Jan Dhan Yojana is Rs. 30,000. This amount is offered to the nominee, when the insured i.e. the account holder passes away. In situations where the nominee is not present or the nominee has passed away before the insured’s death, or the nominee is not the spouse (husband/ wife), child or parent; then the legal heirs of the account holder (insured) must provide an indemnity bond for further procedures of the LIC. LIC’s Pension and Group Scheme offices are designated for the death benefit claim section. The nominee is legally entitled to receive Rs. 30,000 as death benefit, in case anything happens to the insurer and he dies.

FAQs on Pradhan Mantri Jan Dhan Yojana

How many bank accounts were opened under Pradhan Mantri Jan Dhan Yojana?

Above 32 crore bank accounts were opened under Pradhan Mantri Jan Dhan Yojana.

Who can open an account under Pradhan Mantri Jan Dhan Yojana?

Individuals with an Indian nationality, individuals with no proof of Indian citizenship but marked as ‘low risk’ by the particular bank, individuals that have an existing savings account can transfer to Pradhan Mantri Jan Dhan Yojana and Minors above the age of 10 can all open an account under Pradhan Mantri Jan Dhan Yojana.

Can Pradhan Mantri Jan Dhan account be converted to a normal account?

Yes, Pradhan Mantri Jan Dhan Yojana account can be converted to a normal account. However, this is rare. Since, the amazing benefits are advantageous to all.

Who is eligible for Pradhan Mantri Jan Dhan account?

Anyone above 10 years of age is eligible for a Pradhan Mantri Jan Dhan account.

What is the withdrawal limit?

The withdrawal limit is maximum Rs. 10,000 per month.

How can one join the scheme?

Yes. Joint accounts are allowed especially to assist adult and minors.

Can all the major members of the family join the scheme?

No. Only one member of each family, preferably the head of the family.

Will a person get any maturity on exit?

No. This is a pure term plan with only death benefits.

Is any other life insurance company other than LIC offering Insurance?

No. Only LIC is offering insurance under Pradhan Mantri Jan Dhan Yojana.

Where can I open an account under Pradhan Mantri Jan Dhan Yojana scheme?

You can open an account under Pradhan Mantri Jan Dhan Yojana scheme in any bank branch or any business correspondent outlet (Bank Mitra).

What is accidental insurance cover?

Accidental insurance cover is an insurance cover offered to the account holder. Rs 1 lakh is offered as the same. Accounts opened after 28.8.18 will get accidental cover of Rs. 2 lakh

Who will pay the premiums?

No premium is charged to the account holders. The government pays the premium on behalf of the insured. As of now the premium rate is Rs. 0.47 per card.

What is Pradhan Mantri Jan Dhan Yojana?

Pradhan Mantri Jan Dhan Yojana is a national movement initiated by Prime Minister Mr. Narendra Modi. This scheme has been introduced with the objective of including all classes of the society of the people of India in financial services like banking, saving, remittance, deposit accounts, insurances, credit, pension and loans. To make these services available to people in an affordable and cheap manner. A flourishing success with above 32 crore accounts have been opened.

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