Pradhan Mantri Jan Dhan Yojana: How to Open a Jan Dhan Account and Get ₹10,000 Overdraft with ₹2 Lakh Insurance Cover

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014 by Prime Minister Narendra Modi, has transformed India’s financial inclusion landscape. The scheme’s primary goal is to ensure that every citizen has access to essential banking services, allowing even the most underprivileged individuals to manage their finances securely and conveniently. Over time, the focus has evolved from “every household” to “every unbanked adult”, ensuring that no eligible person is left without a bank account.

Let’s understand how you can open a Jan Dhan account, what documents you need, and what benefits — including ₹10,000 overdraft and ₹2 lakh accident insurance — you can receive under this flagship financial inclusion scheme.

Key Benefits of the Pradhan Mantri Jan Dhan Yojana 1. Basic Savings Bank Deposit Account (BSBDA)

Any Indian citizen eligible to open a bank account can open a Basic Savings Bank Deposit Account (BSBDA) under PMJDY without maintaining any minimum balance. The account allows easy deposits and withdrawals. However, cash withdrawals are limited to four times per month to promote responsible usage.

2. Small Account (Chota Khata)

For individuals without valid documents, the scheme allows the opening of a Small Account, which remains valid for 12 months. If valid Know Your Customer (KYC) documents are submitted within that period, the account’s validity can be extended for another year. This feature ensures that even those without complete paperwork can begin their banking journey immediately.

3. Free RuPay Debit Card with Insurance

Every PMJDY account holder is issued a free RuPay debit card. This card comes with an accidental insurance cover of ₹2 lakh (₹1 lakh for accounts opened before August 28, 2018). This benefit provides a crucial safety net for low-income families, helping them manage unforeseen emergencies with financial support.

4. Overdraft Facility up to ₹10,000

One of the most attractive features of the Jan Dhan Yojana is the overdraft facility of up to ₹10,000. This means account holders can withdraw extra funds beyond their available balance to meet urgent financial needs. Initially set at ₹5,000, this limit has been doubled to ₹10,000 under recent reforms.

5. Access Through Bank Mitras (Business Correspondents)

In remote areas where physical bank branches are limited, Bank Mitras or Business Correspondents (BCs) play a crucial role. They act as the bridge between banks and villagers, offering services such as account opening, deposits, withdrawals, mini-statements, and fund transfers at the doorstep. This innovation has significantly expanded banking reach in rural India.

Eligibility to Open a Jan Dhan Account

• The applicant must be an Indian citizen.

• Children above 10 years of age can open an account with the consent of their legal guardian.

• The applicant must provide valid KYC documents as per the bank’s requirements.

Step-by-Step Process to Open a Jan Dhan Account

Visit the official PMJDY website.

Go to the e-Documents section and click on Account Opening Form (available in Hindi and English).

Download and print the form.

Fill in details like bank branch name, address, Aadhaar number, occupation, annual income, and contact information.

Submit the completed form to your nearest bank branch offering PMJDY accounts.

Documents Required for PMJDY Account

To open a Jan Dhan account, you’ll need the following documents:

• Aadhaar Card

• Voter ID, PAN, or Ration Card (any government ID)

• Proof of Address (Passport, Driving License, or Utility Bill)

• Passport-size Photograph

• Duly filled and signed PMJDY application form

• Other government-notified identification documents, if applicable

Recent Updates in the PMJDY Scheme

• Overdraft limit increased from ₹5,000 to ₹10,000.

• Accidental insurance cover doubled from ₹1 lakh to ₹2 lakh for RuPay cardholders.

• Enhanced focus on extending banking services to every unbanked adult citizen.

Why PMJDY Matters for Financial Inclusion

The Pradhan Mantri Jan Dhan Yojana has emerged as a game-changer in expanding India’s banking network. It has empowered millions of economically weaker citizens by bringing them into the formal financial system. Through features like zero-balance accounts, overdraft support, insurance cover, and direct benefit transfers, the scheme has built financial stability and security among rural and low-income families.

In short, PMJDY is not just a banking initiative — it’s a social transformation tool that enables financial independence, promotes savings, and safeguards families against unforeseen hardships.

With continuous reforms and growing accessibility, the Jan Dhan Yojana remains one of India’s most successful steps toward achieving universal financial inclusion.