Categories: Loans and advances

Classification of priority sector advances: Overdraft in PMJDY accounts

The overdraft extended by banks up to Rupees Five thousand in Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts will be eligible for classification under priority sector advances. RBI circular dated 25.02.2015 notifies that  the overdraft under PMJDY can be classified as priority sector advances (‘others’ category) as also weaker sections, provided the borrowers household annual income does not exceed Rs.60000/- for rural areas and Rs.120000/- for non-rural areas. The above instructions come into effect  from February 25, 2015.

Related articles:

Dealing in priority sector lending certificate

What are the latest guidelines on Priority sector lending and targets?
Revision of Housing Loan qualifying Limits for Priority Sector Lending
What is the concept of Priority Sector Lending?

 

 

Surendra Naik

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Surendra Naik

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