Overdraft facility is a type of loan. Due to this, customers can withdraw more money from their bank account than the current balance. The amount withdrawn in this has to be repaid within a fixed period.
Pradhan Mantri Jan Dhan Yojana (PMJDY) was started by the central government to make people financially empowered and to connect people of every category with the banking sector. Under this scheme, Indian citizens can open a zero account account.
Apart from check book, passbook, accident insurance, the common man also gets the facility of overdraft facility on this account. Under the overdraft facility, the Jan Dhan account holder can withdraw up to Rs 10,000 from his account even if there is no balance in the account. Know here when this facility is available and what are the benefits of Jan Dhan account.
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. The amount withdrawn in this has to be repaid within a fixed period and interest is also charged on it.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 Under this, even if there is no balance, up to Rs 10,000 can be withdrawn from the account. This amount can be easily withdrawn through ATM or UPI.
Who can avail the facility
It is not that as soon as the Jan Dhan account is opened, you will start getting the benefit of Rs 10,000 under the overdraft facility. To take advantage of this facility, your account should be 6 months old. If your account has not completed six months, then you can take advantage of the overdraft facility of only Rs 2,000.
Other benefits available on Jan Dhan account
1. One advantage of Jan Dhan account is that due to being a zero balance account, it is not necessary to keep minimum balance in it. That is, even if there is no minimum balance in your account, you will not have to pay any charge for it.
2. This 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.
3. On opening an account under this scheme, you get the facility of Rupay ATM card. Apart from this, accident insurance cover of Rs 2 lakh, life cover of Rs 30 thousand is given.
Who can open account
Any Indian citizen above the age of 10 years can open his account by going to any bank. The objective of this scheme is to add every person to the banking system. Account can be opened in any bank branch or Bank Mitra outlet.
To open an account, you have to take a form and then fill all your details like name, mobile number, bank branch name, applicant’s address and all other information. Apart from this, if you have a savings account, you can convert it into a private account.
