PM Jan Dhan Yojana to be made open-ended scheme with more incentives

The Union Government on August 5, 2018 decided to make the Pradhan Mantri Jan Dhan Yojana (PMJDY) an open-ended scheme and added more incentives to encourage people to open bank accounts.

The flagship financial inclusion scheme was launched in August 2014 for a period of four years. Banking on its successful implementation, the government has decided to make the scheme open-ended with more incentives.


The Government has decided to continue the flagship financial inclusion programme with the main focus on opening an account from every household to every adult.

Key Highlights

Under the new incentives, the overdraft limit for account holders has now been doubled to Rs 10000.

The free accident insurance cover for those opening Jan Dhan accounts after August 28 too has been doubled to Rs 2 lakh.

Further, there will be no conditions attached for over-draft of up to Rs 2,000.

The upper age limit for availing the facility has also been hiked to 65 from the earlier 60 years.

Besides this, the pipeline of Jandhan-Aadhaar-Mobile (JAM) will continue to provide the necessary backbone for coverage of these activities and thereby accelerating the pace of digitised financially included and insured society.

3 years of Pradhan Mantri Jan Dhan Yojana: Going Stronger and Better


The first phase of the PMJDY scheme, which was launched in August 2014, focused on opening basic bank accounts and RuPay debit card with inbuilt accident insurance cover of Rs 1 lakh.

It also provided basic banking accounts with an overdraft facility of Rs 5000 after six months.

The phase II of the scheme, which began in August 2015, planned to provide micro-insurance to the people and pension schemes to unorganised sector workers through business correspondents. The phase ended last month.

Currently, there are approximately 32.41 crore Jan Dhan accounts across the country, having a total deposit balance of Rs 81,200 crore.

Among the account holders, 53 per cent are women, while 83 per cent of the total accounts are seeded with Aadhaar.

Further, around 30 lakh people have so far availed the overdraft facility.

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