Pradhan Mantri Jan Dhan Yojana (PMJDY): Features, Overdraft and Insurance
Last updated: 2026-11-13 · MockMentor
Pradhan Mantri Jan Dhan Yojana (PMJDY) is the National Mission on Financial Inclusion. Announced on 15 August 2014 and launched on 28 August 2014, it gives every unbanked adult a basic savings account with a debit card, insurance and an overdraft. Its slogan is "Mera Khata, Bhagya Vidhata".
In one line: a zero-balance bank account for every adult, which became the base for direct benefit transfers and the Jan Suraksha schemes.
At a glance
| Item | Details |
|---|---|
| Launched | 28 August 2014 |
| Ministry | Finance (Department of Financial Services) |
| Account type | Basic Savings Bank Deposit Account (BSBDA) |
| Minimum balance | Zero |
| Debit card | Free RuPay card |
| Overdraft | Up to ₹10,000 (₹2,000 without conditions) |
| Phase II | From 2018: focus moved from every household to every unbanked adult |
Key features
- Overdraft: after six months of good account use, for ages 18 to 65, one per household, preferably a woman.
- Accident insurance: ₹2 lakh for accounts opened after 28 August 2018 (₹1 lakh before), if the RuPay card was used once in the 90 days before the accident.
- Life cover: ₹30,000 for accounts opened between 15 August 2014 and 26 January 2015.
- At least four free withdrawals a month.
- Business Correspondents (Bank Mitras) deliver services where there is no branch.
Why it matters
PMJDY is the "J" in the JAM trinity (Jan Dhan, Aadhaar, Mobile). It is the main channel for Direct Benefit Transfer (DBT), cuts leakages in subsidies and is the entry point for PMJJBY, PMSBY and APY.
Possible exam questions
- Account opening has been a success, but usage lags. How can India deepen financial inclusion beyond PMJDY?
- Explain the JAM trinity and its role in welfare delivery.
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
More in Finance Ministry schemes
- National Pension System (NPS)
- Unified Pension Scheme (UPS)
- Atal Pension Yojana (APY)
- PM Vaya Vandana Yojana (PMVVY)
- PM Jeevan Jyoti Bima Yojana (PMJJBY)
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