In normal savings bank accounts, customers may have to pay a penalty if they fail to maintain a minimum monthly balance as required. However, for holders of salary accounts, in addition to providing other benefits, banks generally waive the requirement to maintain a minimum monthly balance.
Maintaining a minimum monthly balance is also not mandatory for no-frills account holders, but there are restrictions on the number of deposits and withdrawals, the amount of credit transactions, and a limit on the amount. maximum monthly balance. Holders of these accounts not only enjoy other benefits, but if any of the restrictions are violated, their accounts are automatically converted to a normal savings bank account, requiring them to maintain the minimum monthly balance to avoid falling. pay penalties.
Although it is a no-frills account, a Jan Dhan account under the Pradhan Mantri jan Dhan Yojana (PMJDY), however, provides an overdraft facility and a RuPay debit card with Rs accident insurance coverage. 1 lakh incorporated into cardholders, apart from the luxury of not maintaining a minimum account balance.
However, to become eligible for the overdraft facility, a new Jan Dhan account holder must maintain a healthy positive balance for the first six months and must complete regular cash transactions as well as transactions through the RuPay debit card that they received. been issued.
If satisfied, the bank, in which the Jan Dhan account was opened, would provide the account holder with the overdraft facility of up to Rs 5,000, provided it is an account linked to Aadhaar.
The overdraft facility can be used by the account holder by paying a nominal interest rate.
An account holder can only take out further loans of an enhanced amount after successful and prompt repayment of the entire outstanding loan amount.
Jan Dhan account holders linked to Aadhaar also enjoy the benefits of direct money transfer to government grant recipients.
In addition, Jan Dhan account holders, who opened their accounts between August 15, 2014 and January 26, 2015, also benefit from life insurance coverage of Rs 30,000 according to their eligibility conditions.
To get a checkbook issued, however, a Jan Dhan account holder is required to maintain a minimum positive balance.