Overdraft facility is one of the numerous facilities of Pradhan Mantri Jan Dhan Yojana with the nominal rate of interest, that provided by the bank to its account holders.
The facility helps when you are making a payment but your account balance is low. The facility is usually offered for the withdrawal of a limited amount of money.
All Know about Pradhan Mantri Jan Dhan Yojana
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government run financial inclusion scheme aimed at ensuring access to services such as banking, savings, deposits, remittance, credit, insurance, and pension at an affordable price.
This financial inclusion scheme was launched by Prime Minister Narendra Modi government in 2014, with various benefits such as accident cover, life cover, overdraft facilities, no minimum balance requirement, and much more.
The government recently doubled the overdraft limit on Jan Dhan accounts. The overdraft limit of Jan Dhan accounts now stands at ₹10,000, double than the previous limit of ₹ 5,000.
Very few Jan Dhan account holders know that their account gives an overdraft facility up to ₹ 10000 provided their account is attached with their Aadhaar card.
According to tax and investment experts, if a PMJDY account holder hasn’t attached Jan Dhan Khata with Aadhaar card, then the overdraft facility will be lost.
SEBI registered tax and investment expert Jitendra Solanki said that “The despite being a no frills account, a Jan Dhan account under the Pradhan Mantri Jan Dhan Yojana provides overdraft facility and RuPay debit card with inbuilt ₹ 1 lakh accident insurance cover to the holders, apart from the luxury of not maintaining a minimum account balance.
However, in the case of non attachment of Aadhaar card with the PMJDY, the nominee will find it difficult to claim the above mentioned insurance amount.”
He also said that “The Jan Dhan account holder gets an additional ₹ 30,000 accidental death insurance cover against the RuPay debit card. So, a nominee of a Jan Dhan account holder can claim up to ₹ 1.3 lakh accidental death benefit, in case the account holder dies.”
Accidental insurance cover for new Jan Dhan account holders increased
According to the government, the accidental insurance cover for new RuPay cardholders has been raised from ₹ 1 lakh to ₹ 2 lakh to the Pradhan Mantri Jan Dhan Yojana accounts opened after August 28, 2018.
Benefits under the PMJDY Scheme
- Interest on amount deposit.
- No minimum balance is required.
- Accidental Insurance cover of ₹ 1 Lakh for RuPay cardholder, and accounts opened after 28-08-2018 accidental Insurance Cover is of ₹ 2 lakh.
- Direct Transfer Benefit.
- Ease of money transfer across nationwide.
- Account holders can access to pension, insurance products.
- The scheme provides life cover of ₹ 30,000/- payable on the death of the beneficiary, subject to fulfillment of the eligibility condition i.e. accounts opened between 15.08.2014 to 31.01.2015.
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted.
- Overdraft facility up to ₹ 10000/- is available in only one account per household, preferably lady of the household subject to eligibility and Overdraft for ₹ 2000/- is hassle free.