The
detailed guidelines on the overdraft process for PMJDY accounts has
been hosted on the PMJDY
website.
The
players involved in the overdraft process are the Bankers, account
holders and government functionaries.
As
this is the first time that such a massive overdraft program without
any collateral is being rolled out, the process is completely through
Paper applications.
There
is much scepticism in the social media that this would be a failure and
there would be huge defaults by the PMJDY account holders.
In
my belief, we Indians especially the marginalised class are
trustworthy and the defaults would be minimum.
Adequate
safeguards have been built in the process to ensure that the account
holder can be tracked in the banking sector.
The
overdraft facility is available only to Aadhaar number holders. NPCI
has built a repository wherein the PMJDY account and the Aadhaar
number is linked. Once an overdraft is granted in an account,
appropriate flagging is done in NPCI database.
This
flagging in the database ensures that no multiple overdrafts are
allowed in the same PMJDY account.
A
process review after 3 months would be great. The whole process
should be digitised, with out the need for paper forms.
Below
is the proposed process flow:
01) Any PMJDY account with credits from DBT/DBTL Scheme/scholarship/verifiable sources should be eligible for the overdraft facility.
- The overdraft facility tobe a) 4 times of the average monthly balance b) INR5000/- whichever is lower.
- PMJDY holders can approach any branch of the bank where the account is held. No need to approach the base branch only.
- The OD request to be attested through Aadhaar finger-print verification. No need to fill in any forms or provide any income certificate.
- The respective bank branch officials to validate the request digitally only. No paperwork is envisaged.
- Once the bank branch officials authorises the transaction in the CBS (Core Banking System), the overdraft facility to be enabled.
- System to generate alerts in case there are no credits for 30 days.