The Jan Dhan account is used to ensure that everyone can have access to pension, insurance, remittance, banking, deposit and savings accounts and other financial services. It is for the lower income groups so that they have access to everything at an affordable cost. It uses a BSBDA or basic savings bank deposit account that can be opened by anyone who is 10 years or older.
These are just a few of the most frequently asked questions regarding the Jan Dhan account.
Who can open an account?
Any person can open an account under this scheme as long as they are 10 years old or older. They shouldn’t have another bank account open anywhere else to gain access to this scheme.
What are the required documents for opening an account?
There are numerous documents that can be accepted by the bank for opening the account, such as:
- Driving license
- PAN card
- Voter identity card
- Adhaar card or number
- Job card from the NREGA that is signed by a state government officer
What are the benefits of using a Jan Dhan account?
There are numerous benefits that the holder of a Jan Dhan account would enjoy, including:
- Cash withdrawals
- Fund deposits
- Fund transfers
- Debit card or ATM facilities
- Interest on the deposits
- Accidental insurance coverage of 1 lakh
- No minimum balance necessary
- Mobile banking access
- Life insurance coverage of Rs 30,000
- Simple money transfer across the country
- Access to insurance and pension products
- Overdraft facilities
Are there any fees for opening up a Jan Dhan account?
No, opening up a Jan Dhan account is free of any fees or charges.
Is there any minimum balance required for the account?
There is no set minimum balance requirement set for the Jan Dhan account
Is there a set maximum amount that should be deposited or withdrawn from the account?
Currently the holders that have a fully KYC compliant account can withdraw a maximum of Rs 10,000 per month, while those who don’t have KYC completed can withdraw Rs 5,000 per month. The maximum amount that can be deposited is 1 lakh for those with a fully KYC compliant account and Rs 50,000 for those whose account isn’t KYC compliant.
What is the typical interest rate for the Jan Dhan account?
The typical interest rate for the savings accounts under this scheme is around 4%, but it can change at various banks.
How much can one avail with the overdraft facilities and who can avail it?
For every household only one account can have the overdraft facilities and it has a limit of up to Rs 5,000. Typically, it is preferred that the lady in charge of the household avails the overdraft facility.
What is the amount of interest that the banks will charge for the use of the overdraft facility?
The banks will charge the base rate plus an additional 2% or a 12% interest rate, whichever option is lower.