The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a scheme and National Mission for Financial Inclusion run by the Department of Financial Services, Ministry of Finance. It was announced by Prime Minister Narendra Modi on August 15, 2014, and officially launched on August 28, 2014. The scheme was created to solve the problem of financial exclusion by providing universal access to banking facilities and bringing the unbanked population into the formal financial system.
The mechanism of PMJDY involves opening a Basic Savings Bank Deposit Account (BSBDA), which can be a zero-balance account. Account holders receive a free RuPay debit card and access to banking services in rural areas through Bank Mitras. A key provision is the overdraft (OD) facility, which allows eligible account holders to access up to ₹10,000.
PMJDY is the foundational component of the JAM (Jan Dhan-Aadhaar-Mobile) Trinity. It serves as the platform for the Direct Benefit Transfer (DBT) scheme, which channels government subsidies directly to beneficiaries, thereby reducing leakages. The accounts also connect to social security schemes like the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY).
The scheme was extended beyond August 14, 2018, with a shift in focus from "every household" to "every unbanked adult". The accidental insurance cover on the RuPay card was increased from ₹1 lakh to ₹2 lakh for accounts opened after August 28, 2018. Furthermore, the OD limit was doubled from ₹5,000 to ₹10,000, and the upper age limit for the OD facility was raised from 60 to 65 years.