PMJDY Overdraft – Preference to women borrowers

            PMJDY accounts are an important tool in our country’s Safe ePayments journey. PMJDY accounts encourage the account holders to move from cash based transactions to electronic based transactions.

            One of smart features of PMJDY accounts is the Overdraft of INR 5000/- for accounts with good behaviour.

            The cooing period for accounts to be eligible for Overdraft facility is 6 months. This means that the first set of accounts will eligible after March 2015.

            In the near future, more clarity is expected on the calculation mode for 6 months i.e A) 6 months from date of account opening or B) 6 months from the date of the first transaction.

The second option is preferred, as this will encourage the PMJDY Account Holders to execute quality transactions in their accounts.

            In an informal chat with presspersons at a PMJDY mega camp organised by Corporation Bank at Vamanjoor village in Mangalore taluk on November 22, 2014, Snehlata Shrivastava, Additional Secretary, Department of Financial Services, Union Ministry of Finance,  said that the overdraft of ₹5,000 will be given to head of the family, preferably women, under the scheme.

This is because women have the habit of saving and prudent in their spending, she said.

Link 1, Link 2

PMJDY – Which is better? – An Audit or An ePortal

            Still in its early days, PMJDY is already subject to an Audit. No, it is not audit of the PMJDY scheme, but the validation of basic bank accounts opened by various Indian Banks under PMJDY.

             The Indian Finance Ministry has given the mandate to KPMG to validate the number of basic banks claimed to have been opened by banks under PMJDY.

            The KPMG certification is an important tool for the NaMo ministry move to seek an entry into the Guinness Book of World Records, for the maximum number of bank accounts on a single day.

            The other spinoff the KPMG validation will be the comfort to the finance ministry on the claimed number of basic bank accounts opened by the banks.

            10 reasons why an ePortal should be the preferred monitoring tool rather than an Audit: -

01) Ease of data transfer from the respective banks CBS to the ePortal

02)Banks have been advised to open the PMJDY Bank Accounts under the Basic Banking Account product, which is uniform across all banks.

03)Reports of various types i.e District level, State level etc can easily be customized

04)After the initial set-up, no need of human intervention.

05)Real time availability of data

06)Reduces dependence on banks to submit the data manually

07)Cost effective, as no Maker-Checker will be required

08)Turnover in the account can be monitored

09)Steps can be taken to increase the stickiness of the accounts to the account holders

10) The ePortal can go live in 3 weeks i.e by Mahatma Gandhi’s Birthday