Jan Dhan Account
Full form: Pradhan Mantri Jan Dhan Yojana
BankingPMJDY (Jan Dhan) provides zero-balance savings accounts to unbanked individuals with a RuPay debit card, Rs 2L accident insurance, Rs 30K life insurance (conditional), and overdraft facility up to Rs 10,000. It is India's largest financial inclusion initiative with 50+ crore accounts.
In detail
Jan Dhan account features:nZero minimum balance (no penalty for zero balance)nRuPay debit card with Rs 2L accident insurance coveragenRs 30,000 life insurance for accounts opened before Jan 26, 2015 (original batch)nOverdraft up to Rs 10,000 (after 6 months satisfactory operation)nDirect Benefit Transfer (DBT) for government subsidiesnMobile bankingnnPMJDY has enabled direct transfer of government subsidies (LPG, MNREGA wages, scholarships) directly to beneficiary accounts -- eliminating intermediary leakage.
Real-life example
Rekha (daily wage earner) opened a PMJDY account. She receives MNREGA wages directly -- no contractor deduction. Receives Rs 50L cooking gas subsidy (if eligible) directly. Rs 2L accident insurance at zero premium. After 6 months, gets Rs 5,000 OD for emergencies at 0% for 30 days (DBT-linked accounts). Financial inclusion in practice.