Banking

SBI identifies 7 lakh Jan Dhan accounts for overdraft facility

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SBI

The State Bank of India (SBI) has identified 7 lakh accounts, opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), to provide overdraft facility, a top bank official said on Wednesday.

“We have identified 700,000 account holders who can take overdraft facility. Under financial inclusion, we have just crossed 10 crore accounts,” said SBI Chairman Arundhati Bhattacharya.

Speaking at the 13th Banking Conclave organised by FICCI, she said, seven lakh loans (taking overdraft) will be provided for personal purposes also, not necessarily for entrepreneurship.

“These are small loans. Amount of loans depends up on account holder’s turnover. This is basically for the people who have sufficient turnover in their accounts in order to get an overdraft,” she said.
People, who are from the low-income group and have opened accounts under PMJDY, are eligible for such loans.

Even after successful ending of PMJDY, Bhattacharya  said the bank used to open 60,000 accounts a day in the financial inclusion space.

With the help of evolving technology, the bank is looking at franchise model in which a person can provide all the banking services seamlessly and it helps to expand bank’s reach, she said.

She said small loans are being delivered by business correspondents. With the upgradation of business correspondents model, the bank is coming up with small value insurance, investment and deposits products.

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