Zero Balance Account Withdrawal: Have you ever heard about the facility to withdraw money even if you have zero bank balance? If you do not know about it, then this news can be useful for you. This facility is available in accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY).
There is no requirement to maintain minimum balance in Jan Dhan accounts. You can avail overdraft facility of up to Rs 10,000 even if you have zero balance in your Jan Dhan account. That means, even if there is no money in the account, you can withdraw Rs 10,000.
How to get this facility?
All bank accounts opened under Jan Dhan Yojana are basic savings bank deposit accounts. To avail overdraft facility, you can go to the bank and apply. Most banks approve this application. However, for this you should have good dealings with the bank.
What is overdraft?
When the bank allows you to withdraw a small amount even when there is no money in your account, it is called overdraft. It can be considered as a kind of small and instant loan, which has to be repaid as soon as the money comes into the account.
However, for this facility you also have to pay some interest. But in times of emergency, the option of overdraft can prove to be very useful in handling expenses.
Some things should be kept in mind
People use overdraft to get immediate money in emergencies. However, doing this repeatedly can make your account negative. Also, non-payment on time has a negative impact on your credit score. Also, overdraft rules of different banks may also differ.
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