Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: Have you ever thought that you can withdraw money even if the balance in your bank account is zero? If not, then you would be surprised to know that this is possible. This facility is available with bank accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). There is no need to maintain a minimum balance in the Jan Dhan account. Despite this, customers can avail an overdraft facility of up to Rs 10000 from their zero balance account.
An overdraft means that if you have no money in your account or the balance is zero, you can still withdraw a small amount from the bank. This can be understood as a short-term loan given to you by the bank. When the money comes into your account, you will have to return this amount to the bank. A minimal interest is charged on overdraft. This feature proves to be very helpful especially in case of emergency or incidental expenses.
All bank accounts opened under the Jan Dhan Yojana are Basic Savings Bank Deposit Account (BSBDA). Accidental insurance benefits are also available on the RuPay debit card provided with bank accounts, which has a limit of up to Rs 2 lakh. If customers want to avail this facility, they will have to go to the bank and apply for an overdraft. Most banks approve it immediately, provided the customer has a good track record.
In case of emergency or sudden expenses, money is received immediately. This facility does not require a lengthy process like a loan; it is available immediately. It charges more interest than a normal savings account. The account may become negative if used repeatedly. The bank allows overdrafts only up to a certain limit and non-payment on time may damage your credit history. Different banks may impose different charges and rules on this facility.
Overdraft should be used only when an individual urgently needs money. This facility is extremely beneficial for accidental expenses, medical emergencies or sudden needs. This allows you to withdraw funds instantly without any loan processing. Keep in mind that making timely payments keeps your credit record safe.
