Budget 2018: Govt to extend Modi's flagship PMJDY scheme, double overdraft

Prime Minister Narendra Modi's flagship programme, the Pradhan Mantri Jan-Dhan Yojana (PMJDY), which completed three years in August last year and was credited by Finance Minister Arun Jaitley for unleashing the "JAM" -- Jan Dhan, Aadhaar, Mobile -- revolution, is set to receive an extension in Budget 2018, which is just days away. The financial inclusion scheme could also reportedly see the overdraft amount sanctioned under it double as the government looks to use it to promote entrepreneurship by providing bank loans.

A senior government official told financial daily The Economic Times that during Budget 2018, an announcement on PMJDY being extended is expected. The unnamed official added that an increase in the overdraft amount under the scheme could also be on the cards. Stating that the government was looking to "build upon" the scheme, the official told the financial daily that it was also going to "bundle other financial products" under PMJDY, which will see its second phase end in August.

Currently, under PMJDY, one account, preferably belonging to a woman, in every household can avail of an overdraft of Rs 5,000 once the account has been satisfactorily operated for six months. According to the financial daily, this amount could be doubled to Rs 10,000 in order to allow access to easy emergency funds. The above-mentioned government official told the financial daily that such a move was "being discussed" and the overdraft amount could be "doubled" for those accounts that are "receiving direct benefit transfer through one or more schemes".