PrepMaticExam glossary · Bank exams
Pradhan Mantri Jan Dhan Yojana (PMJDY): features and exam facts
On this page
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is the government's national mission for comprehensive financial inclusion. Its centre is a basic savings bank account with no minimum balance, which any adult can open at a bank branch or a business correspondent outlet. Prime Minister Narendra Modi announced it in his Independence Day speech on 15 August 2014 and launched it on 28 August 2014.
Features of a Jan Dhan account
- Zero balance account with no minimum balance requirement.
- RuPay debit card with an accident insurance cover. The cover was ₹1 lakh and is ₹2 lakh for accounts opened after 28 August 2018.
- Overdraft facility of up to ₹10,000 for eligible account holders, after the 2018 extension of the scheme.
- Eligibility for direct benefit transfers, pensions and micro-insurance products.
- A simple KYC process; people without standard documents could open an account with a "small account" route.
Figures are those announced in the August 2018 extension; confirm current terms at pmjdy.gov.in.
The six pillars
The mission was announced with six pillars:
- Universal access to banking services
- Basic savings bank account with overdraft and RuPay card
- Financial literacy programme
- Credit guarantee fund
- Insurance
- Pension for the unorganised sector
The insurance and pension pillars connect to PMJJBY, PMSBY and the Atal Pension Yojana, all launched on 9 May 2015.
Why it matters
Jan Dhan accounts are the "J" of the JAM trinity (Jan Dhan, Aadhaar, Mobile) used to transfer subsidies without leakage. After the August 2018 extension the scheme became open-ended, meaning no end date, and the focus moved from opening accounts to every household and each unbanked adult. The wider context is in financial inclusion.
How bank exams ask about it
Common stems: "PMJDY was launched on", "the accident insurance cover for RuPay card is", "the overdraft facility under PMJDY is up to", and "which scheme aims at at least one bank account for each household". Because totals of accounts change fast, they appear only in current affairs sections. Add it to the schemes list in banking awareness.
Where to check
Live account counts, balances and guidelines are on the official portal pmjdy.gov.in and the Department of Financial Services site.
Frequently asked questions
Can I open a Jan Dhan account without Aadhaar?
Yes. Aadhaar is one accepted document, but a person without any officially valid document can open a small account, with limits, and convert it later.
Who can get the overdraft?
Account holders with a satisfactory account history, subject to the bank's checks and the scheme's age limit.
Know which section is costing you the cut-off
Take a free bank-exam assessment on PrepMatic. It shows where you stand in Quant, Reasoning and English, then builds a daily study plan and mock tests focused on your weak subjects.
Start free assessment →Free forever plan · No credit card · 2-minute setupRelated
- Financial inclusionFinancial inclusion means affordable banking, credit, insurance and pensions for low-income and rural people. Tools, schemes and how exams ask it.
- KYCKYC (Know Your Customer) is the identity and address check banks must do before opening an account. Meaning, officially valid documents, e-KYC, V-CIP and CKYC.
- PMJJBYPMJJBY is a government-backed term life insurance scheme sold through banks. Cover, age limits, premium, renewal dates and exam facts to remember.
- PMSBYPMSBY is a government-backed accident insurance scheme sold through banks for a very small premium. Cover, age limits, premium, claim rules and exam facts.
- Atal Pension YojanaAPY gives a guaranteed monthly pension of Rs 1,000 to Rs 5,000 from age 60 to unorganised-sector workers. Eligibility, contributions, rules, exam facts.
More in Bank exams
- PFRDAPFRDA is the regulator of the National Pension System and other pension schemes. Full form, formation, statutory status in 2013, NPS tiers and exam facts.
- Payments bankA payments bank accepts small deposits and offers payment services but cannot lend or issue credit cards. Features, balance cap, licensing and exam facts.
- Priority sector lendingPriority sector lending makes banks lend a set share of credit to farming, MSMEs, housing, education and more. Categories, targets and PSLCs.
- Open market operationsOpen market operations are the RBI buying or selling government securities to add or drain cash. Meaning, OMO vs LAF, Operation Twist and exam facts.
- Regional Rural BankRegional Rural Banks are scheduled banks set up in 1975 to serve rural India. Ownership split, sponsor banks, regulation, consolidation and IBPS RRB link.
- Repo rateRepo rate is the rate at which the RBI lends short-term money to banks against government securities. How it works, what a change does and how exams ask it.
- Non-performing assetsAn NPA is a loan overdue for more than 90 days. Meaning, SMA stages, substandard, doubtful and loss assets, gross vs net NPA and how banks recover.
- Reverse repo rateReverse repo rate is what the RBI pays when it borrows from banks against government securities. Meaning, how it differs from repo and its status after SDF.