Covid19 Impact: Govt Mulls Raising Overdraft Limit For Customers With Good Credit History

The government to lessen the impact of economic fall-out due to coronavirus is going the extra mile and now is mulling a proposal wherein state-run lenders may be pushed to augment cash flow situation of people who are not part of any of the relief measures.

As per a leading business dailies report, a plan is being considered to automatically increase overdraft facility for customers, wishing to avail it on the condition that they should have a good credit history. Though, the raise shall be made for a temporary period. "The proposal also includes raising the limit for Jan Dhan account holders (not just women) from the current Rs 10,000. A final decision will be taken soon," a source is quoted as saying in the report.

The move if allowed would not just benefit Jan Dhan account holders but also lower middle class segment which is not covered under PDS and such other schemes.

To combat the coronavirus-led nationwide lockdown, the government earlier announced Rs. 1.7 lakh crore relief package as part of which succour was extended to poor families with Rs. 500 per month transfer for three months pledged for 20.4 crore women Jan Dhan account holders. The transfer solely to women account holders aimed at minimizing possible leakage such that the move benefits intended beneficiaries or poor families.

Nonetheless, as per a source from the banking fraternity, concerns that the BPL families with no women Jan Dhan accountholders will be deprived of the benefit nudged the centre to consider relief for them.

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