Who gets OD facility under Jan Dhan yojana? Is it available for all account holders?
The overdraft facility is available to all account holders under the PMJDY scheme. The overdraft scheme entitles an OD up to a maximum amount of Rs. 5000.
The banks decide on which account holders to offer the OD facility taking into account their credit profile and usability of the bank account. So if you have a dormant account with no financial activity the chances of the bank offering you the OD would quite low.
Overdraft facility is a facility provided by the bank to its account holders. Overdraft facility allows the customer to withdraw money from their account even when they have zero balance in the account. Overdraft facility is usually offered for withdrawal of a limited amount of money.
The account holder can avail the overdraft facility from an account under the Pradhan Mantri Jan Dhan Yojana scheme. An overdraft facility can really help the account holder during sticky financial situations where cheques are involved. Consider an example where you have given a cheque of Rs.2,000 to A but you have zero balance in your account. During such times your cheque won’t bounce due to the overdraft facility. Overdraft also helps when ATM withdrawals are made during an emergency without knowing the balance in the account.
Given below are important details about the overdraft facility offered under Pradhan Mantri Jan Dhan Yojana scheme.
• The overdraft facility is offered to all account holders under the scheme
• An overdraft facility of Rs.5,000.00 is available to any one account holder per household. This means that only one member of a particular family can avail the overdraft facility. Usually female members are given preference for the overdraft facility.
• The facility will be available and can be used by the customer only after six months from the date of the opening of the account under the scheme.
• The account holder should have a good transaction record to avail this facility.
• The account holder should also have a good credit history.
• The amount that can be availed in an overdraft facility is upto Rs. 5000.00. This amount can be extended to a maximum of Rs. 15,000 by the bank if the transaction history of the account holder has been remarkably good in the past six months and if they have maintained a good balance in the bank even though the account requires zero balance.
• There is a nominal interest rate that is charged to the account holder on availing the facility of overdraft. Usually the interest rate is between 10% p.a. to 20% p.a. which is fixed by the bank.
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