New Banking System: Overdraft is a financial facility that allows you to withdraw money from your bank account even when it is low. The overdraft limit for Jan Dhan account holders is ₹10,000. Let’s learn more about this scheme.
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PM Jan Dhan Yojana: Opening a Jan Dhan account was one of the most popular schemes of Prime Minister Narendra Modi’s first term. Under this scheme, account holders receive not only insurance coverage but also an overdraft limit. It’s worth noting that overdraft is a financial facility that allows you to withdraw money from your bank account even when it’s empty. The overdraft limit for Jan Dhan account holders is set at ₹10,000. Let’s learn more about this scheme.
About the Account
The Jan Dhan Account is designed to meet the diverse financial needs of the account holder. It includes features such as a zero-balance account, an insured RuPay debit card, and an overdraft option. This initiative also connects beneficiaries to other government programs for improved financial stability. It was launched nearly 11 years ago during Narendra Modi’s first term.
What are the benefits?
Any Indian citizen eligible to open a standard bank account can also open a Basic Savings Bank Deposit Account (BSBDA). This type of account does not require a minimum balance. Transactions can be made through bank branches, ATMs, and banking service providers. Withdrawals are limited to four per month. For individuals without formal legal documents, small accounts can be opened. These are valid for 12 months and can be extended for another 12 months if proof of an officially valid document is submitted within the first year.
Insurance and Overdraft Limit
Account holders also receive a RuPay debit card with accident insurance. All beneficiaries are required to receive a ₹2 lakh insurance cover. However, for accounts opened before August 28, 2018, accident insurance cover of ₹1 lakh is available. Additionally, beneficiaries can avail of an overdraft facility of up to ₹10,000. Interest is typically charged on the credit amount and overdraft for the number of days the amount is used.
Jan Dhan accounts are eligible for government schemes – Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY) and Micro Units Development and Refinance Agency Bank (MUDRA) Scheme. The Economic Survey presented before the Budget had stated that 55 crore 2 lakh bank accounts were opened under the Pradhan Mantri Jan Dhan Yojana till March 2025.
