Know How to Open Jan Dhan Account For A Minor

Introduction

Every citizen of Indian should have access to essential financial services to ensure that their futures and the futures of their loved ones are safeguarded. Keeping this in mind, the Government of India has launched various initiatives and schemes over the past several years to make this a reality, the Jan Dhan Yojana. More interestingly, the benefits of the Jan Dhan Yojana are available to not only adults but also minors to ensure that they are financially self-sufficient in the future.

Here’s what you need to know about opening a Jan Dhan Account for a minor:

What is the  Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana, or PMJDY, is an initiative for financial inclusion launched in 2014 by the Government of India and seeks to provide access to financial services to a wide range of the country’s population. The goal of the PMJDY initiative is to provide access to savings accounts, deposit accounts, insurance, credit, and remittance services in terms that are affordable to all.

With the PMJDY, an Indian citizen can open a basic savings bank deposit account at a number of banks and financial institutions with ease. One of the most prominent features of this PMJDY account is that it is ‘zero balance’, meaning that the account holder does not need to keep a minimum amount of balance to continue with the account. A minimum balance criteria will only need to be met in case the account holder wishes to keep a checkbook with the account.

Opening a Jan Dhan Account For A Minor

The purpose of the PMJDY initiative is to ensure that all Indian citizens are provided the benefit of holding a bank account and avail financial services. In today’s age, this benefit should be guaranteed to not just adults, but also children to help them become self-sufficient in the future. Therefore, the initiative also allows a PMJDY account to be opened for a minor above the age of 10.

This PMJDY account is different from a PMJDY account for an adult as it is a joint account that the minor shares with his or her guardian. Any transactions done with the PMJDY account require the permission of both the minor as well as the guardian account holder. As the minor account holder becomes an adult, i.e., reaches the age of 18, the PMJDY will be transferred in his or her name after the required documents are submitted.

However, before the child reaches the age of 18, all the necessary documents related to the account are expected to be submitted by the guardian on behalf of the minor.

Documents Needed to open Jan Dhan account for a minor

In order to open a PMJDY account for the minor, the guardian will need to submit the following documents:

• Proof of Address:

The guardian for the minor will need to submit a valid proof of residence. This can include his or her Aadhaar card, ration card, or passport.

• Other Proofs:

In the event that the guardian cannot furnish any of the aforementioned documents as proof of address, he or she must submit a proof of identity issued by the Central Government of India. Alternatively, they can also submit a letter of authority by a gazetted officer.

• Small Bank Account:

In the event that the guardian cannot procure any of these documents, he or she can still open a temporary PMJDY account. This type of account is known as a ‘small bank account’ and due to the lack of required documents, the account holder is declared as ‘low risk’.
To open this form of PMJDY account, the account holder in question is required to sign the opening application in the presence of the authorities from the bank or financial institution. This ‘small bank account’ is valid for a period of only 12 months, within which the account holder will be required to submit one of the aforementioned documents, to keep the PMJDY account active.

Conclusion

With the Jan Dhan Yojana being an option available to minors, the children of India can grow up to make the most of financial services from an early age. Moreover, the process of opening and keeping a PMJDY account is simple and convenient, making it accessible for individuals from all walks of life.