The Ministry of Finance has asked the Employees' Provident Fund Organisation (EPFO) to advise its members who have bank account under the Pradhan Mantri Jan Dhan Yojana (PMJDY) to upgrade them to Basic Savings Bank Deposit Account (BSBDA) so that banks do not reject financial transactions above the cap set.
The Ministry of Finance has asked the Employees’ Provident Fund Organisation (EPFO) to advise its members who have bank account under the Pradhan Mantri Jan Dhan Yojana (PMJDY) to upgrade them to Basic Savings Bank Deposit Account (BSBDA) so that banks do not reject financial transactions above the cap set.
The Finance Ministry has said that beneficiaries of EPFO having small accounts under PMJDY should be asked to comply with the KYC/eKYC stipualted by RBI for conversion of their accounts to BSBDA which has no such limit or transaction restrictions.
The advise comes in the wake of difficulties being faced by EPFO in crediting provident fund (PF) accounts of beneficiaries where bank accounts have been opened under the Pardhan Mantri Jandhan Yojana.
The EPFO has received several references that PF settlement amounts forwarded to the members Jandhan Bank A/c were being rejected by banks since there was a credit limint of Rs 1,00,000 and no transaction, debit or credit beyond that limit is allowed. Faced with complaints, the EPFO had requested the Ministry of Finance to relax the conditions imposed on the bank accounts opened in PMJDY.
In a communication to its regional and sub-regional offices on Thursday, M Narayanappa. Additional Central Provident Fund Commissioner has advised them to inform EPFO subscribers to upgrade their accounts to facilitate efficient electronic services.
The Finance Ministry has clarified that PMJDY also envisages opening of Basic Savings Banks Deposit Accounts (BSBDA) with the following features:
The account shall not have the requirement of any minimum balance
The srevices available in the account will include deposit and withdrawal of casha t bank branch as well as ATMs; receipt/credit of money through electronic payment channel or by means of deposits/collection of cheques drawn by central/;statee government agencies and departments
While there will be no limit of number of depsits that can be made in a month, account holders will be allowed a maximum of 4 withdrawals in a month, including ATM withdrawals and
Facility of ATM card of ATM-cum-Debit card
Those members who do not have any of the Officials Valid Documents (OVD) as stipulated by RBI can open ‘small account’ with banks. A ‘small account’ can be opened in the basis of a self-attested photograph and putting her/his signature or thumb print in the presence of an official of the bank.
However, such accounts have limitation regarding the aggregate credit (not more than Rs 1 Lakh in a year), aggregate withdrawals (not more than Rs 10,000 in a month) and balance in the accounts (not more than Rs 50,000 at any point of time).