The Jan Dhan Yojana, launched by Prime Minister Narendra Modi, has given a new direction to financial inclusion in the country. Under this scheme, citizens who were previously excluded from banking facilities have now become part of the formal banking system. The main objective of the scheme is to connect every family with a bank and provide them with the benefits of modern and secure financial services.
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Zero Balance Account and Overdraft Facility
The most special feature of the Jan Dhan account is that there is no requirement to maintain a minimum balance. Account holders can operate the account even with a zero balance. In addition, account holders can avail of an overdraft facility of up to Rs 10,000 in case of financial need. This facility is especially useful for those who do not have immediate access to funds for unexpected expenses.
RuPay Debit Card and Accidental Insurance Cover
Under the scheme, all account holders are provided with a free RuPay debit card. This card comes with accidental insurance cover of up to Rs 2 lakh. Accounts opened before August 28, 2018, receive insurance of Rs 1 lakh. This security cover significantly reduces financial risks for millions of people living in rural areas.
BSBDA Account and its Features
The Basic Savings Bank Deposit Account (BSBDA) is also a major feature of this scheme. Any Indian citizen eligible to open a regular bank account can also open a BSBDA. There is no minimum balance requirement in this account. Account holders can transact through ATMs, bank branches, and banking service providers. However, there is a limit of a maximum of four withdrawals per month in this account.
Small Accounts for Individuals Without Documents
A small account facility has also been provided for people who do not have formal identification documents. These accounts are valid for 12 months, and the validity can be extended for another 12 months if the person provides proof of application for an identity card within the stipulated time. This initiative has played a significant role in connecting millions of people to the banking system.
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Status of Jan Dhan Accounts Across the Country
M. Nagaraju, Secretary of the Department of Financial Services, stated that currently, approximately ₹2.75 lakh crore is deposited in Jan Dhan accounts. On average, each account holds about ₹4,815. He also mentioned that the launch of this scheme in 2014 was a historic moment for the country, connecting over 57 crore people to the formal banking framework. Notably, 78.2 percent of these accounts have been opened in rural and semi-urban areas, while 50 percent of the accounts are in the names of women, which is a major achievement towards financial empowerment.
