New Delhi:
In a bid to foster financial inclusion and empower citizens across India, the Central Government introduced the Pradhan Mantri Jan Dhan Yojana (PMJDY).
This visionary scheme aims to provide banking access to every segment of society, offering numerous benefits including an overdraft facility.
Let’s delve into who can avail of these accounts, what the overdraft facility entails, and the myriad advantages of opening a Jan Dhan account.
Who Can Open an Account:
Any Indian citizen aged 10 years or above is eligible to open a Jan Dhan account. These accounts can be initiated at any bank branch or Bank Mitra outlet.
The account-opening process involves filling out a form with personal details such as name, mobile number, bank branch, and address.
Benefits of Jan Dhan Account:
1) Zero Balance Requirement: Jan Dhan accounts do not mandate a minimum balance, ensuring account holders incur no penalties for maintaining a low balance, unlike traditional accounts.
2) Interest Facilities: Similar to regular accounts, Jan Dhan accounts offer interest on deposited amounts, encouraging savings among account holders.
3) Accident Insurance Cover: Account holders receive accident insurance coverage of up to ₹2 lakh, along with a Rupay ATM card upon opening a Jan Dhan account.
4) Overdraft Facility: Jan Dhan accounts provide an overdraft facility of up to ₹10,000, allowing account holders to withdraw funds even with zero balance.
Understanding Overdraft Facility:
The overdraft facility functions as a loan, enabling customers to withdraw more funds than their current balance.
Account holders are required to repay the withdrawn amount within a stipulated period, with interest charges applicable.
This facility extends to Jan Dhan accounts, allowing withdrawals of up to ₹10,000 even with no balance.
Withdrawals can be conveniently made through ATM or UPI channels.
Eligibility for Overdraft Facility:
To avail of the full ₹10,000 overdraft facility, Jan Dhan account holders must ensure their accounts are at least six months old.
For newer accounts, an overdraft facility of ₹2,000 is available until the account reaches the six-month milestone.
