J&K Bank extends overdraft facility to Jan Dhan Yojna accounts

Excelsior Correspondent

JAMMU, Mar 28: In the series of steps to provide relief to the people in the wake of Coronavirus pandemic, J&K Bank has extended overdraft facility of ten thousand rupees to the Jan Dhan Yojna account holders.
The bank has issued directions to the operative levels to extend the facility to the Jan Dhan Yojna account holders, who can now avail an overdraft facility of up to Rs 10,000 in their respective accounts. Remarkably, an overdraft of Rs 2000 in each account can be extended to the account holders without any documentation. There are around 22 lakh Jan Dhan account holders in the UT of J&K, out of which 16.51 lakh accounts are with J&K Bank.
In another significant move, as an immediate relief to its borrowers, J&K Bank shall also be increasing the working capital limits of its account holders to an extent of up to 10 pc of their existing limits. Borrowers interested to avail this facility have been advised to approach their respective business units.
These steps are in line with the Rs 1.7 lakh crore Gareeb Kalyan Package announced by the Union Finance Minister Nirmala Sitharaman to mitigate the hardships of the poor due to the Coronavirus lockdown. An amount of Rs 500 per month will be released to all women Jan Dhan account holders of J&K UT for the next 3 months through direct transfer.
The J&K Bank has already announced a 3-month moratorium on the payment of installments of term loans and deferment of interest on working capital facilities outstanding as on March 1, 2020 besides slashing the key lending rate by 75 basis points (0.75 percentage point) and other measures in an emergency move to counter the economic fallout of the coronavirus-induced 21-day lockdown.
J&K Bank has also reduced its external benchmark/ repo linked lined rate by 75 basis points. Further, as already announced, there would be no charges on debit card transactions on domestic ATMs, NEFT/RTGS transactions initiated on mPay or ebank and on UPI transactions. Also no charges shall be levied on account of non-maintenance of minimum balance.
“The overdraft facility is meant to help the people in dire need of money under the prevailing circumstances. The women Jan Dhan account holders who are around 7.84 lakhs in number shall also be greatly benefitted by the Rs 500 relief per month under Gareeb Kalyan Package,” said the J&K Bank CMD R K Chhibber.