Overdraft facility in PMJDY accounts

Reserve Bank of India issued a note allowing overdraft facility in Pradan Mantri Jan Dhan Yojna accounts. PMJDY account is the new beginning in banking sector in which you can open an account with bank having zero balance. Full note is as under.

Priority Sector Lending- Targets and Classification –Overdraft in PMJDY accounts

Please refer to our Master Circular RPCD.CO.Plan.BC 10/04.09.01/2014-15 dated July 01, 2014 on Priority Sector Lending- Targets and Classification.

2. It has been decided that overdrafts extended by banks upto ` 5,000/- in Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts will be eligible for classification under priority sector advances (‘others’ category) as also weaker sections, provided the borrowers household annual income does not exceed ` 60,000/- for rural areas and ` 1,20,000/- for non-rural areas.

3. The above instructions come into effect from the date of this circular.