Opening of multiple bank accounts in Pradhan Mantri Jan Dhan Yojana with an eye on cornering the benefits of the scheme has now emerged as an important pain point that needs to be resolved by Banks and the Government to ensure the scheme is successful.
Multiple Savings Bank Accounts
Some bankers believe that more than 20% of the accounts opened in the last one week as part of Prime Ministers Jan Dhan Yojana have been opened by individuals who already have savings bank accounts in other banks.
Many of the new enrollments under PMJDY have opened accounts with an eye on benefiting from the Rs 1 Lakh accident insurance and overdraft which can be availed in six months’ time.
Can Those who already have Savings Bank Accounts open a new account under PMJDY?
The answer according to all Banks is NO, you cannot open an account under PMJDY if you already have a bank account in a public or a private bank. The Pradhan Mantri Jan Dhan Yojana Scheme is exclusively for those who do not possess any bank account.
Verification of Bank Accounts
It is likely that banks will make Aadhaar Id mandatory so that they can verify if individuals own multiple accounts and then the benefits will be given only to those who do not possess multiple bank accounts under PMJDY.
Demand from Existing Savings Bank Account holders
Many existing SB account holders have started demanding that the benefits are given to new account openers be extended to those who already have SB Accounts in different banks. It is unlikely the government will accept this demand, as it is not financially feasible.
Burdern of PMJDY on Banks
Some economists have warned that the financial inclusion scheme will burden banks and the scheme will be exploited by unscrupulous elements. To clear these apprehensions, the Finance Ministry has released a press note.
- The note says that the insurance scheme will be funded by the revenue generated from Rupay Card Transactions and thus there will be no additional burden on the banks.
- The overdraft limit will be given by the bank at its discretion only when it is satisfied with the operation of the bank account. Currently, banks are providing overdraft facility on more than Thirty-five lakh Savings Deposit Accounts and they have not faced any major rise in defaults.
- Also, a Credit Guarantee Fund will be set up as part of PM Jan Dhan Yojana which will take care of defaults on overdraft extended.
Watch a special report by Times Now on PM Jan Dhan Yojana and it impacts on Indian Banks.