Understanding Overdraft Facility in Bank Accounts

The question asks about a specific government scheme under which all opened bank accounts were intended to include an overdraft facility of Rs. 5,000. Let's examine the options provided to identify the correct scheme.

Analyzing the Options

• Pradhan Mantri Mudra Yojana: This scheme is primarily focused on providing loans (up to Rs. 10 lakh) to micro and small enterprises. While bank accounts are involved for disbursing and repaying loans, the core feature is not a standard overdraft facility tied to every account opened under the scheme for individuals.
• Swarnabharat Yojana: This name does not correspond to a widely known major government financial inclusion scheme offering a general bank account overdraft facility.
• Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, this scheme aims for comprehensive financial inclusion. A key feature of the accounts opened under PMJDY was the provision of a basic savings bank deposit account with zero balance, along with a Rupay debit card, accident insurance cover, and an overdraft facility. Initially, an overdraft of Rs. 5,000 was available after satisfactory operation of the account for six months, later increased to Rs. 10,000.
• Atal Pension Yojana: This scheme focuses on providing social security through pensions to workers in the unorganized sector based on their contributions. It does not directly relate to providing a standard overdraft facility on basic bank accounts for all beneficiaries.

Pradhan Mantri Jan Dhan Yojana Features

The Pradhan Mantri Jan Dhan Yojana (PMJDY) was designed to bring the unbanked population into the formal financial system. The accounts opened under PMJDY came with several benefits aimed at encouraging usage and providing a safety net. One of the significant features was the overdraft facility.

Key features of PMJDY accounts included:

• Basic savings bank deposit account with zero balance.
• Eligibility for Overdraft facility (initially up to Rs. 5,000, later enhanced).
• Issuance of RuPay Debit Card.
• Accident Insurance Cover (initially Rs. 1 lakh, later enhanced).
• Life Cover (Rs. 30,000 on death of the eligible beneficiary).

The overdraft facility under PMJDY was specifically intended to provide a small credit cushion to account holders, particularly those with low or irregular income, after demonstrating satisfactory transaction history.

Based on the analysis, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is the scheme that mandated an overdraft facility (initially Rs. 5,000) for the bank accounts opened under it.

Revision Table: Key Scheme Features

Additional Information on Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been a cornerstone of India's financial inclusion drive. It aimed to provide universal access to banking facilities, credit, insurance, and pension in an affordable manner. The zero-balance accounts and the associated benefits like the overdraft facility were crucial in encouraging participation from economically weaker sections and low-income groups who previously lacked access to formal banking services.

The overdraft limit under PMJDY was later increased from Rs. 5,000 to Rs. 10,000 per household, with the age limit for availing the facility also relaxed. This overdraft feature is a form of small credit facility provided to account holders who maintain their accounts satisfactorily, enabling them to meet urgent small expenses.