About 32 cr Jan Dhan accounts have been opened under the PMJDY and the over draft facility has been raised from ₹5,000 to ₹10,000. Apart from that, an overdraft amount of ₹2,000 with no conditions attached has also been introduced. The age limit for this is also increased from 18-60 years to 18-65 years.
The aim is to include all citizens in the financial system.
Government’s stance
‘We expect that mostly vegetable sellers or similar small shop owners will use this facility for their daily businesses. This is expected to help them get more into the formal banking system, as they will be making repayments in order to stand eligible for large value loans’, ET cited an official stating this.
The government is confident that the small value OD is less likely to turn into bad loans. And has also emphasized on the 8 cr accounts that have availed Direct Benefit Transfer (DBT).
About PMJDY
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. Accounts opened under PMJDY are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria