Pradhan Mantri Jan Dhan Yojana

How it works

Pradhan Mantri Jan Dhan Yojana is a government schemes product from Government of India — small savings, in the guaranteed category: fixed by contract. A basic savings account with no minimum balance requirement, opened through any bank or post office.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

• A first bank account with no balance requirement
• Receiving government transfers

Key facts

What can go wrong

• The rate is typically low, so the balance loses value to inflation.
• It is a bank account, not an investment.
• Some accounts attract charges if the balance stays nil for long periods.

Before you decide anything

• Whether the account comes with a RuPay card and accident cover
• Any charges for inactivity

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

• PMJDY — official portal↗

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.