With over 7.87 crore bank account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the finance ministry has begun working on the criteria as to who would be eligible for an overdraft facility under the scheme.
“We have begun discussions with banks on the parameters based on which OD facility would be given. It can be given based on satisfactory conduct in the account. Also, it has to be commercially viable for banks as well,” said a senior official. The department of financial services, which is the nodal agency for the PMJDY is understood to have also set up a working group on the issue with banks.
“It has to be based on consensus with all banks. So we have to work out common parameters that will automatically kick in for the OD facility,” said the official, pointing out that banks will have to monitor transactions to choose the eligible beneficiaries.
At present, none of the bank account holders under the PMJDY have OD facility. An OD facility of Rs 5,000 is expected to be made available to at least one account holder in each facility after six months of “satisfactory activity” in the bank account. The PMJDY was launched on August 15 with the aim of providing financial empowerment to the poor. While the scheme has 7.87 crore accounts with cumulative savings of Rs 6,213.3 crore, 75. 6 per cent of accounts are dormant.
The issue is understood to have been discussed at a review meeting of finance minister Arun Jaitley with heads of public sector banks last week. Meanwhile, the finance ministry is expecting to enroll 10.5 crore individuals for bank accounts by March 2015.