Banks to offer OD of ₹5000 to women SHG members

  • December 21, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Banks to offer OD of ₹5,000 to women SHG members

Subject – Economy

Context – Banks will offer ₹5,000 overdraft (OD) to verified women Self Help Group (SHG) members having Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.

Concept –

  • Banks will offer ₹5,000 overdraft (OD) to verified women Self Help Group (SHG) members having Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to meet their credit needs without insisting on security and end use amid the ongoing pandemic.
  • In this regard, the Indian Banks’ Association (IBA) has formulated a ₹5,000 OD scheme to provide hassle-free credit to low-income group/ underprivileged women within the existing PMJDY OD scheme of ₹10,000.
  • PMJDY provides access to various financial services such as basic savings bank account, need-based credit, remittance facility, insurance and pension to the excluded sections – weaker sections and low-income groups.

To know about Pradhan Mantri Jan-Dhan Yojana (PMJDY), please refer August 2021 DPN.

Facts about Pradhan Mantri Jan-Dhan Yojana (PMJDY)

  • As the calendar year draws to a close, the total number of beneficiaries under the Centre’s financial inclusion scheme, Pradhan Mantri Jan Dhan Yojana (PMJDY), has crossed the 44 crore mark.
  • The total number of accounts stood at 41.43 crore in the same period last year.
  • In terms of performance of States in implementing the scheme, Uttar Pradesh tops the list with highest number of accounts followed by Bihar.
  • More than half of the total beneficiaries are women, a majority of whom are from semi urban and rural areas.
  • Public sector banks (excluding regional rural banks) have over 21.70 crore accounts with them, accounting for a total balance of over ₹1-lakh crore
  • According to bankers, there has not been much increase in dormant accounts in the last two years, and many of the newly opened accounts have been witnessing some kind of transactions.
    • According to the Reserve Bank of India’s guidelines, savings and current accounts will be classified as dormant if there are no transactions in the account for two years.
  • The average balance in Jan Dhan accounts hovers at about ₹2,700 across banks.
Banks to offer OD of ₹5000 to women SHG members economy