The Government of India has launched a scheme for poor and needy people, which is working to bring financial security and banking services to every household. This is the Pradhan Mantri Jan Dhan Yojana (PMJDY), under which any person can open a bank account without depositing a single rupee and can get insurance cover of up to Rs 2 lakh.

The scheme, which started in 2014, has proved to be a boon for those who were far from the banking system. Let us understand the benefits and features of this scheme closely.

Initiative to connect every citizen with banking

The objective of the introduction of Pradhan Mantri Jan Dhan Yojana was to deliver banking services to every corner of the country, especially to poor families who could not open bank account due to financial constraints. The scheme not only promoted financial inclusion, but also connected millions of people with the mainstream of banking. From the village-countryside to the cities, this scheme has assured financial security to the people of every section.

Specialty of zero balance account

The public money account to be opened under PMJDY runs completely on zero balance. That is, there is not a single rupee in your account, even then the bank will not close it nor will it be charged any penalty. This facility is especially beneficial for those who do not have regular income. Along with this account you also get Rupay Debit Card, so that you can easily transact.

Insurance and overdraft double hit

Jan Dhan account is not only a means of depositing money, but it also gives many financial facilities. If the account holder dies in an accident, his family gets an accidental insurance cover of up to Rs 2 lakh. At the same time, assistance of Rs 1 lakh is given in the event of partial disability. Apart from this, a life insurance cover of Rs 30,000 is also part of the scheme, which makes the future of the account holder safe.

Not only this, if your account is active for 6 months and regular transactions are happening in it, then you can avail overdraft facility up to Rs 10,000. That is, if needed, your economic needs can be met by borrowing from the bank.

Your savings will increase with interest

4% annual interest is also available on the amount deposited in Jan Dhan account. This feature not only protects your money, but also helps in increasing its value. This interest is an additional advantage for small savings, which strengthens their economic condition in the long run.

Easy to open an account

The process of opening Jan Dhan account is very simple. You can take Aadhaar card, voter ID, ration card or any other identity card in your nearest government or private bank. You can open an account by filling a simple form there. Many banks are now providing online facilities, so that you can open this account from home. This ease and access makes this scheme even more popular.