Overdraft facility is a type of loan. Due to this, customers can withdraw more money from their bank account than the current balance. In this, the amount withdrawn has to be repaid within a fixed period.
With the objective of connecting every section of India with the banking system, making them financially capable and providing benefits through various schemes, the Central Government had started the Pradhan Mantri Jan Dhan Yojana (PMJDY). Under this scheme, zero balance account is opened, that is, you do not need to maintain minimum balance in this account. Apart from this, many other benefits including overdraft facility are also given. Let us tell you who can open this account, what is the overdraft facility and what are the benefits of opening a Jan Dhan account.
Who can open an account
Any Indian citizen above 10 years of age can open a Jan Dhan account. The account can be opened in any bank branch or Bank Mitra outlet. To open an account, you will have to take a form and after that fill all your details like name, mobile number, name of the bank branch, address of the applicant and all other information.
Benefits available on Jan Dhan account
- One advantage of Jan Dhan account is that since it is a zero balance account, it is not necessary to maintain minimum balance in it. That means, even if there is no minimum balance in your account, you will not have to pay any charge for it. Whereas in other accounts, penalty has to be paid for not maintaining minimum balance.
- The account can be opened in any bank. Like normal accounts, you also get the facility of interest on the deposited amount on Jan Dhan account.
- On opening an account under this scheme, you are given accident insurance cover of up to Rs 2 lakh along with Rupay ATM card.
- On Jan Dhan account, the account holder is given an overdraft facility of up to Rs 10,000.
What is overdraft facility?
Overdraft facility is a type of loan. Due to this, customers can withdraw more money from their bank account than the current balance. In this, the amount withdrawn has to be repaid within a fixed period and interest is also charged on it. Overdraft facility is also available in Jan Dhan account. Under this, up to Rs 10,000 can be withdrawn from the account even if there is no balance. This amount can be easily withdrawn through ATM or UPI.
Who can avail the facility
It is not that as soon as you open a Jan Dhan account, you will start getting a benefit of Rs 10,000 under the overdraft facility. To avail this facility, your account should be 6 months old. If your account has not completed six months, then you can avail the overdraft facility of only Rs 2,000.
