Benefits of pradhan mantri jan dhan yojana

Benefits of pradhan mantri jan dhan yojana|Pradhan Mantri Jan Dhan Yojana provides accidental insurance benefit of

Pradhan Mantri Jan Dhan Yojana (PMJDY) is an ambitious scheme launched by the Government of India on August 28, 2014, to provide universal access to banking facilities for all households in the country. The objective of the scheme is to ensure financial inclusion of the unbanked population and promote financial literacy among them. In this article, we will discuss the benefits of the Pradhan Mantri Jan Dhan Yojana in detail.

Here are the benefits of Pradhan Mantri Jan Dhan Yojana

1. Universal access to banking facilities: PMJDY ensures universal access to banking facilities for all households in the country, including the unbanked population.
2. Basic Savings Bank Deposit Account: The scheme provides a Basic Savings Bank Deposit Account (BSBDA) for all unbanked individuals, which can be opened with zero balance and no minimum balance requirement.
3. RuPay debit card: All account holders are provided with a RuPay debit card, which can be used for cash withdrawals and purchases.
4. Overdraft facility: Eligible account holders are provided with an overdraft facility of up to Rs. 10,000, providing access to credit facilities for the poor who were earlier forced to borrow from money lenders at exorbitant rates of interest.
5. Insurance coverage: Account holders are provided with an insurance cover of Rs. 2 lakh, as well as accidental insurance coverage of up to Rs. 1 lakh, providing a sense of security to the account holders and their families.
6. Financial literacy: Financial literacy camps are organized by the banks to provide information on financial products, savings, credit, and insurance, empowering the account holders to make informed decisions about their finances.
7. Direct transfer of subsidies and benefits: The scheme has facilitated the transfer of subsidies and other benefits directly into the bank accounts of the beneficiaries, eliminating the role of intermediaries and reducing leakages in the system.
8. Mobile banking facilities: The scheme enables mobile banking facilities for the account holders, allowing them to access banking services, such as balance inquiry, mini statement, and fund transfer, from the comfort of their homes.
9. Promotion of digital economy: The scheme has provided impetus to the digital economy by enabling mobile banking facilities for the poor, reducing the need for them to visit bank branches.
10. Financial inclusion in rural areas: The scheme has played a significant role in promoting financial inclusion in rural areas, enabling the poor to access banking facilities and improving their standard of living.
11. Reduction in poverty: The direct transfer of subsidies and benefits has resulted in the reduction of poverty, as the benefits reach the intended beneficiaries directly.
12. Reduction in corruption: The scheme has reduced corruption by eliminating the role of intermediaries in the transfer of subsidies and benefits.
13. Improvement in the standard of living: The scheme has improved the standard of living of the poor by providing them with access to banking facilities, credit, and insurance.
14. Empowerment of women: The scheme has played a significant role in empowering women by providing them with access to banking facilities, credit, and insurance.
15. Promotion of entrepreneurship: The scheme has promoted entrepreneurship by providing access to credit facilities for the poor, enabling them to start their own businesses and become self-employed.

Pradhan Mantri Jan Dhan Yojana provides accidental insurance benefit of

Pradhan Mantri Jan Dhan Yojana (PMJDY) provides accidental insurance benefit of up to Rs. 1 lakh to the account holders. The accidental insurance benefit is provided through the RuPay debit card that is issued to the account holders. The RuPay debit card comes with a personal accident insurance cover, which provides accidental death and disability cover to the account holder and their family members.

In case of the account holder’s death due to an accident, the nominee or legal heir of the account holder is entitled to a claim of up to Rs. 1 lakh. In case of permanent total disability due to an accident, the account holder is entitled to a claim of up to Rs. 1 lakh. In case of permanent partial disability due to an accident, the account holder is entitled to a claim proportionate to the extent of disability, subject to a maximum of Rs. 1 lakh.

The accidental insurance benefit is available to all PMJDY account holders, including those who have opened their accounts with zero balance. The account holder is automatically enrolled for the accidental insurance benefit at the time of opening the account, and there is no additional fee or premium that needs to be paid for availing this benefit.

The accidental insurance benefit provided under PMJDY is a significant step towards providing financial security to the unbanked population in the country. Accidents can cause significant financial loss to a family, especially if the breadwinner of the family is affected. The accidental insurance benefit provided under PMJDY ensures that the account holder and their family members are financially protected in case of an accident, providing a sense of security and peace of mind.

In addition to the accidental insurance benefit, PMJDY also provides life insurance cover of Rs. 30,000 to the account holders. The life insurance cover is provided through the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is a government-backed life insurance scheme. The PMJJBY provides life insurance cover of Rs. 2 lakh at an annual premium of Rs. 330, which is deducted from the account holder’s account on an annual basis.

Overall, the accidental insurance benefit provided under PMJDY is a significant step towards promoting financial inclusion and providing financial security to the unbanked population in the country. The scheme has played a crucial role in improving the standard of living of the poor and empowering them to lead a financially secure life.