Loop Holes in Jan Dhan Yojna

First, the guidelines of the scheme are very hazy and have visible loopholes.

The scheme is solely for people who don't have an account in any of the banks. There is a separate form for Zero balance accounts, which is less complicated than the usual form. For example, you don't need a reference of someone who already has an account. The bank is taking in written that the said person doesn't have an account elsewhere. Till now there is no way to confirm that, I don't think that's even a priority of Modi right now. There are no guidelines in case the person is lying yet. Some people have come asking them to shut their existing accounts and start a new Zero balance account.

Opening Zero balance accounts at more than one banks is useless because the insurance is for when you die in a road accident and the money comes from same source. Unless you can die more than once..

Another major flaw seems that the account holder can ask the bank for Rs. 5000 overdraft in case of an emergency. No detail given about how the bank has to judge the emergency or anything like that.

Loop Holes in Jan Dhan Yojna Loop Holes in Jan Dhan Yojna Reviewed by Kanthala Raghu on August 29, 2014 Rating: 5

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