What type of accounts are opened under the PMJDY scheme?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
Savings Accounts
Explanation
The accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) are fundamentally Savings Accounts in nature. Specifically, they are classified as Basic Savings Bank Deposit Accounts (BSBDA), tailored to bring the unbanked and economically weaker sections of society into the formal banking system.
Launched in August 2014, PMJDY stands as India's ambitious National Mission for Financial Inclusion. Since these are basic savings accounts, they are opened with a zero-balance requirement, meaning holders face no penalties or transitional restrictions for not maintaining a minimum average balance. These accounts are designed to securely store cash, earn standard savings interest rates, and facilitate Direct Benefit Transfers (DBT) for various central and state government welfare subsidies.
The other options represent distinct banking instruments that do not align with the foundational mandate of the scheme. Fixed Deposits (FDs) and Recurring Deposits (RDs) are time-bound investment accounts, while Current Accounts are zero-interest transactional accounts meant exclusively for businesses and commercial entities.
Key Points
PMJDY savings accounts come with a completely free RuPay Debit Card, which includes an inbuilt accidental insurance cover of up to ₹2 lakh for accounts opened after August 28, 2018.
Account holders are entitled to an Overdraft (OD) facility of up to ₹10,000 after six months of satisfactory account transactions, serving as a micro-credit line for low-income households.
In strict compliance with Reserve Bank of India (RBI) guidelines, an individual opening a PMJDY BSBD savings account is legally restricted from holding any other standard savings bank account within the same banking institution.
Important Questions and Answers
Question: What is the official tag-line or motto of the Pradhan Mantri Jan Dhan Yojana scheme launched by the government?
Answer: The official motto of the scheme is 'Mera Khata, Bhagyavidnata' (My Account, Divine Provider).
Question: What is the minimum age requirement outlined for a minor to independently operate a PMJDY basic savings account?
Answer: Minors above the age of 10 years are eligible to open and operate a basic PMJDY savings account.