PMJDY - Overdraft of INR 5000. 5 reasons for success

    

The contours of Prime Minister Jan Dhan Yojana (PMJDY) Overdraft of INR 5000/- will be unveiled in the next couple of weeks.

As per the present thinking, the OD can be availed by account holders who have seeded their Aadhaar Number in the Banks account database and have satisfactory operations for 6 months.

Similar guidelines as applicable instant credit of outstation cheques may apply to OD requests too.

The guidelines for quantifying satisfactory operations are not laid down in black and white, but based on banker’s experience.

The following points are considered while assessing a customer account for satisfactory operations: -

a)    No cheque bounce

b)   No decline of eTransaction due to financial reasons

c)    Average balance

d)   Credits in the account at regular intervals.

There are many apprehensions that the due to OD facility a large number of accounts will slip into NPA mode and banking industry will face huge losses.

            Assuming out of the 7.5crs accounts, 20% (1,50,00,000) of accounts will be eligible to avail OD facility, funds to the tune of INR 7,500 crores would be required.

5 reasons why the NPA level will be LOW in the OD Accounts

01)  The accounts have already cleared the first step of credit appraisal i.e the satisfactory operations test.

02)Inflow of subsidy credits at regular intervals.

03)Inflow of other Government payouts

04)The Indian Jugaad ability to ensure credits and debits are always equal

05)The poor are always trustworthy, Yes, the poor always trustworthy