SBI to offer overdraft facility to 7,00,000 small account holders

This apart, SBI is also planning to come out with small value insurance, investments and flexible deposit schemes

State Bank of India (SBI) will offer overdraft facility to nearly 7,00,000 account holders enrolled under the Pradhan Mantri Jan Dhan Yojana (PMJDY). The bank has opened nearly 100 million accounts under PMJDY so far.

"We are looking at the transactions of the accounts under PMJDY, and gauging the number of accounts which can be provided overdraft facility. We have found, so far, some 7,00,000 accounts can be provided overdraft facility," said Arundhati Bhattacharya, chairperson, State Bank of India, at the Federation of Indian Chambers of Commerce and Industry (Ficci) Banking Conclave here today.

This apart, SBI is also planning to come out with small value insurance, investments and flexible deposit schemes.

"It is on account of inability of people to access banks, that several small deposit schemes flourished in places like West Bengal. Through business correspondent model, we will give access to banking facility to rural people. We are coming out with small value insurance, investment products and flexi-deposit schemes," said Bhattacharya

READ THIS: CBSE Class 10 board exam results likely tomorrow: How to check it on Bing

SBI continues to open around 60,000 accounts per day in the financial inclusion space, said Bhattacharya.

Notably, the PMJDY scheme offers an overdraft facility of up to Rs 5,000 to account holders. A few public sector banks have also started offering such a facility to their account holders. Under the scheme, the facility is offered to people whose accounts have been functional for consecutive six months.(READ MORE)